Category Archives: Insurance

Short Term Non-owned Insurance Now Available!

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What is Non-Owned?

Non-owned or as it is more commonly called, “Renters insurance”, is a liability policy that can provide bodily injury, property damage and aircraft hull protection for a pilot that is flying an aircraft they do not own.

 

“Do not own” is the key phrase. You do not have to own an aircraft to be found liable for damage or injuries. It is important to note that this is liability coverage; in addition, it is not only for rental aircraft. A borrowed, or even a flying club aircraft can put the pilot in a position of potential responsibility or liability.

Very simply put, liability means the coverage is used if the named insured is found liable for damage or injury to a third party.

Most Non-owned policies are annual (12 month) policies.

What if you have you found yourself in a situation where you need non-owned (renters insurance), but only for a short period of time? Maybe on vacation and want to get a checkout and fly at the local FBO, or you only need to use an aircraft you do not own for a week or two. Do you really need a year long “annual ” policy?  Maybe what you need is a daily, weekly or monthly policy.

Depending on the state, now you can buy a Short Term Non-Owned Insurance Policy with the click of your mouse.

Looking for Short Term CFI Non-owned Insurance?  That’s available too.

To get a quote click here and complete the application.

Note: a few states only allow annual policies.

non-owned

Do you need DRONE insurance?

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Depends on what you are doing with the drone, your appetite for risk and how deep your financial pockets are. There is an anonymous saying I like “flying is not inherently dangerous, but crashing is”.  If you have a risk of crashing you might have a need for insurance.
Risk can be handled in a number of ways.  You can take the risk on yourself (self-insure), you can stay away from risk (don’t fly), reduce the risk (better training, safety systems, only fly on calm days) and you can transfer the risk to someone else. 
Insurance is basically transference of risk. You are transferring the risk of your drone to the insurance company for a fixed smaller amount of premium. They hope you will not crash and they will not have to pay a claim. But for that privilege they have requirements that you are to follow. 
When do you need to consider buying insurance for your drone?
Are you flying as a hobby or recreational use?
If you are flying your drone as a hobby or recreation and you are not operating in the commercial category, most likely your homeowners (if you have one) policy will cover the liability insurance. Homeowners insurance might even cover the drone for theft or losses other than crashing. You would be subject to the homeowner policy deductibles. I don’t sell typical homeowners so I can’t tell you the details, but make sure you contact your homeowner’s insurance company and ask to know for sure.
Are you flying for hire? 
Commercial drone insurance is usually considered aviation insurance.
Reason I am saying aviation is because once you decide to make the transition to commercial operations, the homeowner insurance companies really do not want the risk. Aviation insurance companies already understand aircraft risk so the transition to drones is actually a little bit easier. In fact, many of the aviation insurance companies have been providing drone coverage for years but on a bigger scale. Just in the past couple of years did they start opening there “doors” to smaller more general aviation drone operators.
Commercial drone insurance coverage
1.     Liability
2.     Drone hull coverage
3.     Extra scheduled equipment
Typically, liability coverage in an aviation insurance policy will be for property damage and bodily injury.  You need to know the basic insurance definitions to understand the coverage.  The following definitions were taken from various policies and simplified as best as possible.
“Property damage”means any physical damage to “tangible” property.  This coverage does not cover the aircraft itself, any of your own property or property that you are in charge of.  This is just for the property belonging to others that was damaged by the accident.  This damage might include the loss of use of the property.   Example; houses, automobile, crops etc.
“Bodily injury” liability means the physical (bodily) injury to or the death of a person.
What does aircraft liability insurance protect you from? If you have an accident in your aircraft, the liability coverage will protect you from lawsuits from people that are injured, any of the heirs from anyone that is killed in the accident AND from anyone that has property destroyed or damaged.
But it is important to remember that the policy limit is typically the maximum the insurance company is responsible for (payments and legal defense).
Hull coverage is the protection you are buying for the actual cost of the drone and equipment attached to the drone.  Aviation insurance is generally an “agreed value” policy.  That means if you have a total loss, the claims department will pay the stated value of the “drone” on the policy (minus your deductible).  This is different from your auto insurance.  As an owner it is your decision to value the drone at a reasonable level.    Most underwriters will allow you to pick the value based on the type of drone and equipment and the age. Or they may request that you provide proof of the value (receipts etc). 

That’s the basics of the type of coverage that are available.  For  more information or with any questions, contact me, Scott Sky Smith “Name on the door”. 

Most common boat claims

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Owning a boat has its risks. 
In general, the biggest risk comes to the bank account.  At least that’s in my personal experience, owning a boat always seems to costs me money.  Of course, so does a Harley, Cessna or anything else I own. There is always a never-ending list of improvements and gadgets that I want to add.  And if I don’t add things to the existing boat, there is always another boat around the corner I want to buy. New or used the “risk” is there. 
So think you can save money by not adding anything new to your boat?  Sorry doesn’t work that way.  Even if you don’t add or change things on your boat, there will always be regular maintenance items that are the result of age or wear and tear. There are also a few fixed costs that boat owners cannot get away from.  Slip or mooring fees and insurance are just a couple. No one but the owner pays these types of expenses.  They are part of the risk of owning a boat. 

Maintenance is necessary and vitally important to maintaining the value and safety of the boat. It is also something that can’t be covered by warranties or insurance. There are a few things that are covered under the warranty that may be construed as maintenance, but typically, warranties are good for defective manufacturing or assembly of your boat, motor and accessories.  If it is a problem that results from regular use (wear and tear) or recommended service intervals…it is not going to be covered by a warranty.  Sure there is always that chance that the local dealer might include free oil changes or tune-ups for some limited amount of time. But that’s not a typical warranty.

Time to make a shameless plug and tell you to buy my book, “Ultimate Boat Maintenance Projects”. Published by Motorbooks International and available at book stores or directly from SkySmith. Okay, good maintenance wont protect you from everything, but it sure will help.  I also think that doing some of your own maintenance will make you feel more comfortable as an owner. Learn how and do basic maintenance as an owner,m its good for you!  Want to know more, go to one of my seminars at a boat show in your area.  Not speaking at your boat show?  Maybe you should get them to invite me! Okay, off the soap box. 
Anyway…Insurance, (often defined as the transfer of the risk of a potential loss, from one entity to another, in exchange for a reasonable fee) is sometimes expected to pay for these regular expenses.  Well, let me remind you that wear and tear and maintenance are not covered by insurance. 
Many people try to have regular maintenance items covered by insurance only to be disappointed when the claim is denied.   Items like frozen and cracked engine blocks, overheating damage, even the failure of the bellows will not be covered. The cause (poor service, lack of antifreeze, etc) won’t be covered but the resulting sinking or fire may be. That’s the key. Let me try and clarify this again, the accident and the resulting damage should be covered, but the cause might not.  An example could be the deteriorating bellows on a lower unit.  If the bellows dries out and cracks it could leak and the boat could sink.  The bellows would not be covered, but the damage that results from the sinking probably would.   Okay, seems pretty gray, which but that is just the way it is.
So what are some of the most common claims?
There are a few claims that keep popping up.  One marine insurance claim department I contacted felt that about 80 percent of their claims are the result of hitting a submerged object.
Think about it.  The more storms there are, the more rivers that flood, the more stuff is floating in the water and under the surface. Submerged objects will result in damage to lower units, propellers, keels, and hulls.  Sometimes sinking does occur. If you think or know you hit something, make sure you check bilge area and monitor the bilge regularly to make sure there is not any damage that could result in submersion or, in other words…sinking.
Using information from marine insurance claim departments and organizations like Boat US, a few of the other common claims I discovered are:
Theft of assorted boat equipment and parts (portable or permanent).  Items like out drives, electronics, outboard motors, and trailers are some of the most popular parts.  Leaving the trailer unattended in the parking lot or the cockpit uncovered is an invitation for a thief.  Check your policy, many do not cover items stolen from your boat unless it was permanently attached or in a locked compartment. 
Grand theft boat.  Snatching the whole boat is another big claim.  While there are cases of theft from a slip or mooring, trailer-based boats are the ones that are usually turned in on a claim. Boats, like cars, are often stripped and the parts sold a piece at a time.  Remember the phrase “the sum of the parts is worth more than whole” well that’s true with boat parts.  Plus if you take all the parts off the boat, the parts are harder to track down. 
Collision claims.  Collisions with anything are bad.  Collisions with pilings, docks, and other boats can be deadly.  Collisions are not the same as hitting submerged items. Collisions are just that, colliding with something else either moving (another boat) or stationary (like a dock).  You can help stop collisions by watching where you are going, learn the rules of the area and use your charts.
Grounding or running aground.  Most claims departments indicate that often more damage is caused by trying to accelerate through the sand, mud or rocks than by just stopping and waiting for help.  Using a tow service or an alternative method to get unstuck like air bags, reduces the risk for further damage. . 
Now is a good time to repeat – carry up-to-date marine charts and plan your cruising routes to avoid accidental grounding.
A few of the less common but still important claims mentioned are:
Lightning strikes. Being the one of the tallest things on the water during storms is bound to result in a lightning strike.  Lightning usually “fries” the electronics, puts holes in fiberglass and starts fires.  It is a hard thing to prevent.  Best way to reduce the damage is to ground the boat so the current has a way to pass through to the ground.
Damage from docks.  Wind, weather, and hurricanes, can cause chafing, damage to rub rails and hull joints and even rip cleats out of the decks.  Get in a habit of moving the boat to a safe harbor or new neighborhood when bad weather is imminent.  Learn to tie up securely, use high quality dock lines and fenders.  Last year was bad for the hurricane states.  The underwriters are already increasing rates and reducing or eliminating territories and coverage’s. 
There are a few claims relating to fire and explosion. Often the cause is from bad wiring, fuels leaks, overheated manifolds, and even bilge vents not being used or being blocked. These claims can be reduced or eliminated just by taking part in a good preventative maintenance plan.
Occasionally there will be a boat that sinks from bad through-hull fittings, damaged sea cocks and the bilge pump being blocked and/or the back up bilge pump and warning system being inoperative.  Occasionally a storm with lots of heavy rain or combined with a lightning strike can short the boats battery preventing the bilge pumps from working.
Of course, the list above is not inclusive.  There are all sorts of variations along with different levels of each type of claim.  Even if you take all the precautions, accidents do happen. Boat owners buy insurance to transfer the risk to the insurance company for those unexpected catastrophes, so make sure you have the right coverage for your vessel and you implement a preventative maintenance plan to help reduce potential claims.