Renters Insurance.. who has it / understands it?

Shoefly

New Member
I start my PPL lessons this Saturday (on my birthday at that!
) and have been looking through some old messages regarding renters insurance.

Basically, my flight school has a engine on/off policy. If the engine’s running and something bad happens, $2500 deductible, $500 if it’s not.

So, lets say I go with AOPA. From what I understand, my yearly fee of $xxx (based on coverage) will take care of that deductible plus whatever extra damages, up to my coverage amount. In addition, this should include some legal services. Is my thinking correct?

Thanks,
-S
 

flyguy

Well-Known Member
[ QUOTE ]

Basically, my flight school has a engine on/off policy. If the engine’s running and something bad happens, $2500 deductible, $500 if it’s not.


[/ QUOTE ]
So when the s**t hits the fan, shut the engine off before something bad happens.


I guess that policy makes sense. If the s**t were to hit the fan(propeller) and the fan was running, it would make a much bigger mess.
 

Sprint100

Well-Known Member
Yep, that is how it is said to work. I have not met anyone who has filed a claim so I don't know if it is true or not. I have it because my FBO requires it, plus it makes me feel a little secure in case they say I caused some damage.
 

Josh

Well-Known Member
If you have a problem, extra insurance may cover it. You'll have to ask on the specific policy. Me, I don't have anything right now, livin' on the edge.

But, I just had to post here as my birthday is 17 January as well. I went from 30 to 31 a few days ago.

Josh
 

Nick

Well-Known Member
I did some research before renting from an FBO and basically what I learned was you cannot depend on the FBO's renter insurance to cover you. It only covers them. Insurance companies can "subrogate", or pass on, the cost to you. So if there's $3,000 worth of damage to the plane, you'll have to pay for that.

I ended up going with AOPAIA for renter's insurance.

Nick
 

montana

New Member
From what I understand, renter's insurance only covers the deductable that you would have to pay on the FBO's insurance to get something fixed. If the FBO's insurance company decides to come after you for the $30,000 worth of damage you did on a gear up landing, then the renter's insurance would not cover you. I don't have renter's insurance because the amount you have to pay does not really seem to justify the amount they will end up paying out in the end. I pay $20 a month and get $500,000 worth of term life insurance, so why would I pay $50 a month for $3000 of coverage on an airplane, and then not be totally covered anyway? Seems sort of like a scam to me.
 

JHines

New Member
The point of renter's insurance is to cover you for damages you cause to your passengers, people on the ground, or property other than the plane. It's a basic liability policy.

You can also get coverage for the hull value of the plane. You can get a very high amount of hull coverage if you wish, but the premium is high.

A good compromise is to get high liability limits and just enough hull coverage for the deductible on the FBO's insurance.

The theory is, if you trash a beat up 1966 Skyhawk with 1.5 operating radios, you can probably afford to pay that off, but not so if you run over the lineboy and send him to the hospital.

In most all cases the FBO's insurance does not cover the renter for anything. The FBO will get paid for damages to the plane and then the FBO's insurance carrier will go after the renter.
 

Mustang17c

Well-Known Member
The way I see it the FBO has insurance. The FBO's has a deductible to pay to their insurance company if something happens (much like car insurance). If you do not have insurance you will have to pay that deductible (be it $2,500, $5,000, etc...). With renters insurance your provider will cover that deductible.
 

CAVOK

New Member
[ QUOTE ]
The point of renter's insurance is to cover you for damages you cause to your passengers, people on the ground, or property other than the plane. It's a basic liability policy.

You can also get coverage for the hull value of the plane. You can get a very high amount of hull coverage if you wish, but the premium is high.

A good compromise is to get high liability limits and just enough hull coverage for the deductible on the FBO's insurance.

The theory is, if you trash a beat up 1966 Skyhawk with 1.5 operating radios, you can probably afford to pay that off, but not so if you run over the lineboy and send him to the hospital.

In most all cases the FBO's insurance does not cover the renter for anything. The FBO will get paid for damages to the plane and then the FBO's insurance carrier will go after the renter.

[/ QUOTE ]

That is exactly how it works...nice post. I would recommend everybody get renters insurance one they venture out from under the "student pilot" clause of the FBO's policy.
 

MidlifeFlyer

Well-Known Member
What we often refer to as "renter's insurance" is actually called "non-owned aircraft insurance." It has three primary components: bodily injury liability, property damage, and, hull damage.

The first two, bodily injury liability and property damage, are pretty much the same as the similar coverage you are familiar with from your auto insurance policy. In this case, the insurance covers your financial responsibility for injuries you cause to people or damage you cause to property (other than the airplane itself) while you are operating an airplane you do not own.

The third, "hull damage" is sort of like collision. It covers your financial responsibility for damage you might cause to the airplane itself when you are operating an airplane that you do not own.

The "legal" component is just like the one in your auto policy - if you are sued, the insurance company will hire a lawyer to defend you.

How much to get? That depends on your assessment of your exposure. But if you are keeping hull damage coverage low because you =think= that you are only responsible for someone else's deductible, better think again and get some reliable information. Like something in writing from the owner =and= the owner's insurance company that says so.

Also your real exposure as a pre-solo student pilot is =almost= non-existent. In flight, your CFI is in command and has the ultimate responsibility for any damage you might do. You'd pretty much have to accidentally set the airplane on fire on the ground to have any real liability.
 

MidlifeFlyer

Well-Known Member
[ QUOTE ]
From what I understand, renter's insurance only covers the deductable that you would have to pay on the FBO's insurance to get something fixed. If the FBO's insurance company decides to come after you for the $30,000 worth of damage you did on a gear up landing, then the renter's insurance would not cover you.

[/ QUOTE ]You understand incorrectly.
 

MidlifeFlyer

Well-Known Member
[ QUOTE ]
How does this differ from CFI insurance????

[/ QUOTE ]It's similar. But the normal non-owner policy doesn't cover your potential liability for giving bad instruction. Even more, it specifically =excludes= any commercial activity, and, from the insurance contract standpoint, that includes giving flight instruction.

CFI insurance is non-owner insurance that also covers your financial liability for damage you cause in the course of giving flight instruction, whether you are operating the airplane or not, whether you are PIC or not and whether you are in the airplane or not.

Two examples:
(1) You are flying Joe's airplane. You land gear up. A regular non-owner policy covers the damage you caused to the airplane.
(2) You are giving Joe a BFR in his airplane. You're not happy with his landings and decide to demonstrate one. You land gear up. A regular non-owner policy =will not= cover the damage you caused to the airplane. A CFI policy will.

The difference is not that big. And the difference in premium isn't that big either.
 

cime_sp

Well-Known Member
A CFI policy will cover the same thing as a renters policy and it offers CFI liability as well??? I'm just trying to keep these clear in my head. Thanks
 

MidlifeFlyer

Well-Known Member
[ QUOTE ]
A CFI policy will cover the same thing as a renters policy and it offers CFI liability as well???

[/ QUOTE ]That's about it. It's really just a non-owner policy with a CFI liability rider.
 

davetheflyer

New Member
[ QUOTE ]

CFI insurance is non-owner insurance that also covers your financial liability for damage you cause in the course of giving flight instruction, whether you are operating the airplane or not, whether you are PIC or not and whether you are in the airplane or not.



[/ QUOTE ]

"CFI insurance" is professional liability or malpractice insurance. If a student crashes because you forgot to teach him crosswind landings, for example, you could be held liable.

What you are referring to is a normal liability policy. This would be rated on the use of the aircraft, such as business/pleasure or instruction. When I had my 150, a business/pleasure policy was $400 per year while a policy that would cover instruction was $2000.

Non-owner insurance or renter policies normally have hull coverage for damage to "your aircraft" plus liability to cover whatever or whomever you crash into.
 

MidlifeFlyer

Well-Known Member
[ QUOTE ]

Non-owner insurance or renter policies normally have hull coverage for damage to "your aircraft" plus liability to cover whatever or whomever you crash into.

[/ QUOTE ]I'm sure you know this but just made a mistake. If it's a "non-owner" policy, there is no "your aircraft."
 
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