Purchasing renters insurance doesn’t have to be complicated, but sometimes the insurance lingo can be. It helps to know what these terms mean and what impact they have on you.
The most important part of the policy is liability. This is your protection for passengers who may be injured, or any person or property affected due to your negligence. In your policy, this is called bodily injury and property damage liability. This coverage is required, and you cannot purchase a policy without it. Coverages are available from $250,000 to $1,000,000, and we recommend purchasing the highest amount of liability coverage you can afford, or a limit that will give you peace of mind.
Liability does not cover damage to the rented or borrowed aircraft. To cover damage to the rented or borrowed aircraft, you would need to purchase non-owned physical damage coverage. Physical Damage coverage is available in increments from $5,000 to $200,000. Typically, you will need enough to cover the estimated value of the aircraft you fly, or the amount the rental agreement says you are responsible for. This optional coverage would pay for damages that are your responsibility such as:
- Loss of use – the lost profits by the flight school/FBO while the aircraft is being repaired and cannot be rented to others
- Parts and labor required for engine teardowns and inspection
- Repair of the engine and aircraft to return it to the same condition as before the incident, including test flights and pilot charges
- Reduced value of the aircraft – the aircraft could potentially be worth less now that it has been involved in an accident
- Up to $5,000 towards the deductible of the owners aircraft policy, even if you are not negligent
Additionally, the AssuredPartners Aerospace Renters policy provides legal defense coverage as part of the policy if you are found liable for an accident.
AssuredPartners Aerospace is AOPA’s partner for aviation insurance. We can give you examples of how each coverage applies and help you figure out the right coverage for you, at the price you can afford. Let us help you navigate the insurance market.
Visit ap-aerospace.com/rent today to learn more and view a sample policy. Or call 800-622-2672 today to speak with one of our experts. We look forward to serving all your aviation insurance needs now and in the future.