Will you be at @SunnFunFlyIn 2024? I’ll be giving forums. Make sure you check the schedule and join me.
Tag Archives: aviation
Don’t let your aviation insurance lapse!
Aviation insurance lapse?
Don’t let your aviation insurance lapse or expire just because you are not flying or the cost of your insurance. With the corona virus issues in the country, many pilots have parked their aircraft. Which is fine in some cases, but it might not be the best for everyone.
There have been changes happening daily in aviation insurance underwriting for the last year or so. One of which is the aviation insurance premiums are increasing. We have see 10% to even 100% premium increases (depending on the plane and pilot).
But it’s not just the premiums increasing, the underwriting requirements are also changing. Depending on your aircraft and your age, if you let your coverage lapse, you might not get quoted again. Aviation insurance is not an automatic renewal, you need to start over each year.
If you have a unique or low production aircraft you might have difficulty getting a company to quote the aircraft.
This is also especially important if you are close to 65 years old or older! Make sure you contact us (or your broker) before you let your insurance expire. There are aviation underwriters that will not quote new business for pilots older than 65. Once you cancel or let a policy expire, you become “new” business. At that point, the insurance underwriter that you let expire does not have to take you back.
There are options to keep the coverage in place even if you are not flying. You could keep ground not-in-motion coverage on the hull to protect it from fire theft and storms. Or you can reduce the coverage to liability only.
The idea is to keep the policy in place and not have the risk of not being able to get coverage in the future.
Questions, contact SkySmith at – ins@skysmith.com or 515-289-1439
What is non-owned or renters insurance?
What is non-owned or renters insurance?
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 a 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, rented or even a flying club aircraft can put the
pilot in a position of potential 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. For example, if a person is flying an aircraft that has an engine failure or some other mechanical problem that is not the pilot’s fault and
damages occur, non-owned insurance would not necessarily pay the claim.
Many people feel they do not need to buy insurance on their aircraft and they can let their friends fly their aircraft if the friends have non-owned insurance and they are protected. Not true. If the pilot is not found liable, there is no coverage. When a renter signs the rental agreement, they are agreeing to pay the owner for the damages. Usually that consists of the paying the owners deductible. However, the Fixed Base Operator, flight school or the owner of the aircraft actually gives up their right to subrogation when they accept the claim. Once the claim is paid, the insurance company can go after the pilot or third party that was liable. That is the subrogation clause.
Non-owned comes in two basic parts. Bodily injury and property damage (BIPD) liability and hull damage liability.
So how much should you buy? Like any insurance product, check with an estate and financial adviser (or lawyer) to figure out what level you need to buy. However, be careful, non-owned is very reasonable protection, but it can cost a lot of money per year. Buying non-owned insurance often costs as much as an aircraft owner pays for owned insurance.
You have to buy BIPD as a minimum. Most buyers that have any level of assets (a home, car, etc) usually opt for at least a million dollars, usually with a $100,000 sub limit. This coverage is quite reasonably priced.
The high cost comes in the hull protection. One option is to buy enough to cover the total loss of the aircraft that you are flying. Another option is to buy enough to cover at least half the value. The reasoning is that there will probably be some salvage value.
If you have more questions, feel free to contact us.
Or if you need a quote, click here.