The holidays have come and gone, and very popular gifts were recreational drones. Drones and drone insurance are topics that many people are interested in so I asked some area claims managers and underwriters for their feedback on the issue.
Drone Insurance… Covered by Homeowners Insurance?
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It seems as though if the drone is strictly used for play or as a hobby, then coverage will extend from the homeowner’s policy because the drone does not meet the definition of “aircraft.” The drone does not convey people or cargo. The drone itself will be considered “personal property” and therefore will only be covered for named perils — and crashing will not be one of them. So, the drone itself will not be covered when damaged.
The big exposure for drones is the liability that might occur with the misuse of the drone. Some examples include:
- Crashing your drone into a neighbor’s plate glass window.
- Crashing your drone into an expensive vehicle.
- Crashing your drone into someone’s head. “My eye! My doctor said I’m not supposed to get any drone debris in it!”
- Invading someone’s personal privacy with a drone. (This is already excluded.)
There are lots of possibilities, and your imagination can run wild.
Drones for Commercial Use
As soon as someone uses a drone for commercial use (professional photography, claims adjusting or to carry cargo), it is no longer considered a hobby. At this point, insurance coverage will be affected and government regulations will apply.
The potential for enormous liability losses will probably force insurance companies to provide policy wording that will limit their liabilities.
The next thing to figure out is the integrity of the drone liability policies that are being offered by drone clubs and organizations.
- What will be the financial ratings of these companies?
- How likely will they be to pay claims?
Our advice is: go ahead and get a drone. Just don’t fly it anywhere. And if you do, make sure you have drone insurance. If you need an insurance quote for any reason, including your new drone, please click below to fill out our quick and easy form.