More than a million drones were sold this holiday season. If one happened to land in your pile of presents, remember that taking to your neighborhood skies comes with responsibilities. We offer a few reminders about insurance and protecting yourself from financial liability if there is injury or property damage. As a drone operator, you want to make sure that you will be able to pay for damages or personal injury that was caused by your negligence.
Homeowners and Renters Insurance. Start by reviewing your homeowners and renters insurance policies. Then speak to your insurance agent to learn if drone-related accidents are covered.
According to the Insurance Information Institute, drones are most likely covered under these policies. The liability portion of your homeowners insurance may cover you in lawsuits for bodily injury or property damage. Your policy may also provide no-fault medical coverage if someone is accidentally injured by your drone. But there are limits; medical bills for you and family members may not be covered by no-fault medical coverage.
Another reason to have insurance for your drone: If your drone causes bodily injury or property damage, and a claim is brought against you, proper insurance will not only cover the damages; the insurance company will also provide a lawyer to defend the claim against you.
Check with your insurance agent. The insurance industry is actively discussing this topic. Already, some insurers may exclude drone-related accidents from homeowners insurance policies. Others may choose to do so in the future.
Car Insurance. Your auto insurance policy may cover property damage resulting from crash landings or related accidents. Ask your auto insurance agent.
Commercial Users. If you operate a drone for business (even for a part-time business), you should ask your agent if you are covered. This would not typically be covered under your homeowners insurance policy.
Safety Reminders. Never use your drone recklessly and always follow current safety regulations. Drone owners are required to register drones with the FAA and fly at or below 400 feet. Failure to do so could result in a fine. To learn more, watch this safety video from the FAA.
Theft. Consider theft insurance if it make sense. Some drones are small and can be easily stolen. But remember many homeowners have to pay a deductible if they file a claim. If you own an inexpensive drone it will likely be less than your deductible. Maybe it was time to upgrade to the fancier drone anyway.
Memberships. If you do not have adequate coverage, consider your options. You may be able to buy more insurance coverage from your carrier or research other insurance carriers. You may also qualify for coverage if you belong to a membership organization or club. The New York Times reported the Academy of Model Aeronautics offers group liability coverage as part of its $75 per year membership. This may pay for damages after your homeowners insurance policy is exhausted.
Time to Get Started
If you are a drone owner, we hope you take the time to check with your insurance agent so you understand your potential liability. Drone crashes can happen on your property or a neighbor’s property and you want to be prepared.
Here are two resources:
In the aftermath of Hurricane Sandy, many people are assessing damage to their homes, cars and property. Insurance losses across the country are already estimated at $7 billion to $15 billion, while total losses will easily exceed $50 billion. If you are affected, it is important to act promptly. If you made it through the storm with property intact, now is a good time to plan for future hurricanes.
The lawyers at Breakstone, White & Gluck offer these tips:
Contact your insurance company. If you suffered damage, immediately contact your insurance company. Call your agent, or call the company directly. Let them know what damage you suffered, and ask them to send claims forms. If the damage is extensive, you may find it useful to hire a public adjuster to catalog and estimate your damages.
File the claim. Obtain as much supporting information as you can, such as receipts and photographs if you have one. If you did an inventory of your home, that will be useful proof.
Cooperate with the adjusters. A field adjuster will visit your property to assess the damage to your home or your vehicles. Provide any additional information they need.
Understand your insurance policy.Nobody likes reading insurance policies (well, we know a few lawyers who enjoy that, but nobody else), but the policy will spell out the steps you must take during the claims process. Follow those steps to protect your rights in the event of a dispute of the money you are owed. Failure to cooperate or to follow claims procedures may lead to a denial of your claim.
Tree damage may be covered. Standard homeowners insurance policies cover damage if a tree falls on your home or a garage, shed or fence on your property. If it hits a neighbor’s property, then their policy or yours may cover it. If it just lands in your yard, it is likely that you will have to bear the entire cost of its removal.
Beware of Short Statute of Limitations. Contract claims in Massachusetts generally have a six-year statute of limitations. But it is likely that your insurance policy has provisions governing disputes that are much shorter, often just months after the insurance company makes its tender of settlement. If there is a dispute, get legal help quickly!
Make Sure You Are Protected for the Next Big Storm
Inventory your property. Filing a claim is easier if you know what you own and have documented it, including writing a list and taking pictures or a video. Keep a back-up copy of everything in a safe place away from the house. For help, the Insurance Information Institute has online software you can find at www.knowyourstuff.org.
Understand your policy. Have your agent or broker explain key provisions, exclusions, and other options. For liability insurance, consider adding an umbrella. For property damage, consider earthquake insurance.
Know your insurance policy’s hurricane deductible. Massachusetts is one of 18 states which allows homeowners insurance companies to set a specific deductible for hurricane damage.
Consider flood insurance. Flood-related losses are only covered if you have flood insurance. Standard homeowners and renter policies cover damage from wind and wind-driven rain that enters a home. But damage from water on the ground or seeping into a basement is not covered. This will be the main reason many victims of Hurricane Sandy will not have insurance coverage.
In fact, only about 20 percent of homeowners who should have flood insurance actually have the coverage, according to the Insurance Information Institute. Meanwhile the average residential flood results in $30,000 in damage, according to the National Flood Insurance Program. Consumers can learn more at www.floodsmart.gov.
Car Insurance. If you have a comprehensive auto insurance policy, flood damage to your car should be covered. But motorists carrying only liability coverage will not be covered.
Please explore some of our other articles on insurance basics. The policies you have protect you from claims, cover your property losses, and in many cases pay you for damages caused by others who may be underinsured. Usually it is worth the extra cost to have that peace of mind.