Renters Insurance

[ozziecat35]

The FBO I'm looking to rent with here in Aurora, IL responded to my insurance questions with this info:

Regarding renter’s liability, Lumanair’s insurance covers single limit bodily injury; including passengers; and property damage. All bodily injury limited to: $100,000 each person; $300,000 each occurrence. You as the renter are responsible for the aircraft and any liability limits in excess of what we provide. Generally, it is acceptable to have enough hull coverage to handle any deductibles. The ‘not in motion’ deductible for all Lumanair aircraft is $250. The ‘in motion ‘ deductible for the Cessna 172’s is $1,000, Cessna 182RG is $2,500 and the Seminole is $5,000. Our insurance does not subrogate against renter pilots. However, you would be responsible for our deductibles if you are deemed at fault. It is highly recommended that the renter pilot obtain renter’s, otherwise know as non-owner’s, insurance to protect themselves.

Now I'm confused. Do I only need to get insurance to cover the deductible, or should it be for the entire hull value? Also, what should I be paying if I did the $2,500 deductible coverage for the 182RG & 172? TT is about 185 right now. I'm Multi-Engine current right now and have 80 hours in complex/RG aircraft in the last 6 months with a checkride in the same time frame. I'm not single engine current however.

Thanks.

 

[Xcaliber]

Sounds like, if something happened, you'd only need to cover the deductible. This sounds like great insurance coverage to me (well, the limits may not be that good, but the policies are). What they didn't tell you is whether they have enough insurance to cover their planes (ie. if they are underinsured or not). If they are underinsured, you a liable for the rest of the hull damage over and beyond the amount they are covered for.

However, insurance is always a case of CYA. KEEP THIS NOTE IN WRITING.

Our insurance does not subrogate against renter pilots.

I find this extremely hard to believe, but by saying this, if the insurance company ever did try to subrogate, I think you'd have a valid case to show that the client (the FBO) waived the insurance company's right to subrogate. Of course, I'm not a lawyer or a financial planner, but those are just my thoughts.

 

[jskibo]

AOPA stuff is cheap, like $150 for $5000 deductible and liability for the singles. Not sure as to the twin as they told me it would be a separate quote.

Our club rates include insurance for full value so I really don't need the AOPA, just keep it in case I rent elsewhere

 

[rframe]

CYA.

Get an actual copy of their policy if you really want to leave your liability in their hands. They vary a lot in their coverage. Some will subrogate any damages to the renter. Some might not come after you for damage to the FBO's aircraft, but any other liability you are on your own. Some might extend full coverage. When you're talking about expensive airplanes operating around even more expensive airplanes... you really cannot just take someone's word in an email. Further, what happens if in 3 months they switch underwriters?

If what they are saying in the email is accurate, it sounds like you could get a renters policy for liability and a small hull coverage and be well covered.

 

[JordanD]

I'm a little leery about renter's insurance from most places. I know at my school their insurance covers their airplanes, but the insurance company is going to come after you for the cost and the lost revenue. I just get my own CFI non owned poily. About $500 a year for 50k bodily injury, 500k each accident, and 40k for aircraft damage. Probably screwed if I total the airplane but at least if I taxi into a parked plane or my student really botches a landing I'm covered.

 

[Muff3n]

I have a policy through the AOPA insurance agency. Mainly to just cover deductibles of the aircraft I rent. I have been pleased thus far by dealing with them.


Sent from my iPhone 5 using Tapatalk

 

[hammerhat]

For members of that "very special club", NAFI recently partnered with Avemco. I got my non-owned + CFI policy with twin piston coverage for a little over 500/year

 

[rframe]

For members of that "very special club", NAFI recently partnered with Avemco. I got my non-owned + CFI policy with twin piston coverage for a little over 500/year

I've worked with Avemco on policies before and I really like them.

FYI, if you are not a member of NAFI you can get the same exact CFI policies at the same cost as NAFI, the only difference is the NAFI policy extends liability coverage to instruction you've given previously. So if you get a NAFI-Avemco policy tomorrow and some dude that you solo'd last year crashes and kills someone, and their family sues you... you theoretically have some liability insurance.

With the non-NAFI Avemco policy, liability coverage only starts the day your policy does.

Whether or not that is any real "benefit" is for you to determine

 

[Cessnaflyer]

Get the insurance. We had a renter that nearly cartwheeled our 172RG and put it out for a few months while it was repaired. Total cost was astronomical.

 

[tlewis95]

+1 for getting the insurance. To cover you in the singles through AOPA (which I can recommend) will probably be $150 a year or so to cover the deductable (all that you will be repsonsible for) and would probably go up to $500 or so per year for the Seminole. They generally read "and non-pressurized piston single under 450hp, with 7 seats or less" as a given, and then the named type (PA44) if you are getting coverage on a twin or something outside of the basic criteria above.

 

[ozziecat35]

Thanks all, I will look into this a little deeper.

 

[tomokc]

That's a great deal for the renter: 1) Pay only the low deductible; 2) No subrogation; and 3) Don't pay loss of revenue while plane is being repaired. Even car rental agreements require that!

 

[athlete526]

For members of that "very special club", NAFI recently partnered with Avemco. I got my non-owned + CFI policy with twin piston coverage for a little over 500/year

Don't go with avemco. Their policy is excess insurance and will create headaches if something ever happened.

 

[athlete526]

Thanks all, I will look into this a little deeper.

Keep in mind, the insurance the flight school purchases is only for them unless they have some kind of student renter coverage endorsed onto their policy. The insurance company can come after you if you bend metal. The best thing to do is purchase liability limits and a hull coverage limit you think is adequate to you. Usually the best amount of hull coverage to purchase would be what it would cost for a tear down and inspection after a prop strike.

Also

 

[athlete526]

I'm a little leery about renter's insurance from most places. I know at my school their insurance covers their airplanes, but the insurance company is going to come after you for the cost and the lost revenue. I just get my own CFI non owned poily. About $500 a year for 50k bodily injury, 500k each accident, and 40k for aircraft damage. Probably screwed if I total the airplane but at least if I taxi into a parked plane or my student really botches a landing I'm covered.

This is exactly what you should do if you want that extra protection and if you're an independent CFI. when you instruct, if you can, see if the owner will add you as an additional insured with a waiver of subrogation for pilot services. This will give you the coverage you deserve under the aircraft owners policy and the insurance company won't come after you.