Drone Gifts May Become a Home Insurance Problem This Christmas

Did you know? Starting December 21st, all drones that weigh between 0.5 lbs. and 55 lbs. must register with the FAA. This includes all drones that were purchased before December 21st.

If you are getting, or giving a drone for the holidays you may want to contact your home insurance agent before sending it up into the air for the first time.

According to industry experts, drone sales are expected to come in at more than $100 million dollars in 2015. The Federal Aviation Administration (FAA) predicts that over 1 million drones will be purchased over the holiday season. While drones priced under $100 are the most popular items, heavy-duty drones costing upwards of $1,300 are also selling quickly.

Regardless of the size or cost, flying a drone is serious business and can come with some insurance headaches if not handled properly. A drone that goes through a neighbors window or gets caught up in nearby power lines can end up being a very expensive flying lesson. In addition to the insurance issues, the FAA has put new regulations in place that all drone pilots must follow.

Starting December 21st, all drones that weigh between 0.5 lbs. and 55 lbs. must register with the FAA. This includes all drones that were purchased before December 21st.

Other FAA guidelines that all drone pilots should also be aware of are that drones need to stay below 400 feet, should be kept in the sight of the pilot at all time and should not be flown over people. Drones can also not be flown within five miles of an airport unless the pilot has explicit permission from the airport.

Shockingly, a recent study found that since December of 2013, drones have come within 500 feet of an aircraft over 327 times and in some cases the pilot had to maneuver out of the way to avoid a collision.

Homeowners Insurance and Drones

When it comes to drones and homeowners insurance coverage, in most cases you will be covered but there will probably be an extensive investigation to determine what happened.

If your drone veers off course and ends up crashing through your neighbor’s picture window, you should be covered. Industry experts compare it to a baseball causing the same type of damage. While homeowners coverage will not typically cover damage to your own home due to a poorly thrown baseball, when the damage is to a neighbors house it becomes a liability issue.

So, if you fly your drone through your own window, you will be covering the damage out of pocket but if it’s your neighbor’s house, your policy will step up, minus your deductible of course.

As drones become more popular it is possible that insurers will start adding drone specific exclusions to policies so it is best to check with your insurance agent before launching your new toy outside. As with most insurance issues, coverage will vary by policy and the details of the claim so the circumstances of the accident will be key to determining whether or not the damage is covered.

Wording in the policy can also be crucial. Most standard homeowner policies exclude liability coverage for injuries or damages that arise out of the ownership, maintenance, operation, use, loading, or unloading of an “aircraft.” How the word “aircraft” is determined in the policy can mean the difference between a covered claim, and one where you are on the hook for the damages.

If you want to be absolutely certain you are covered, consider joining the Academy of Model Aeronautics. Memberships cost $58 a year but one of the benefits of membership is access to a $2.5 million general liability policy which should be enough to cover even the most serious of damages.

Remember, business use is almost always excluded on homeowners policies which means that if you are taking photos with your drone for personal use when the accident happens, you are more than likely covered, but if the photos are for a real estate listing as part of your job as a real estate agent, your claim will almost certainly be denied.

What about if a neighborhood Grinch steals your brand new toy? In almost all situations a drone would be considered a personal possession and should be covered by your homeowners policy. Unfortunately, like all personal property, it will be subject to your deductible which means that that if you are carrying a $1,000 deductible, the cost to replace your drone (or at least most of it) will fall to you.

The best advice is to call your insurance agent and confirm coverage for you new toy. Once you have confirmation, get out there and have some fun.

If you have questions or concerns about your home insurance coverage, please contact HomeInsuranceKing.com today for free homeowners insurance quotes so you can review affordable rates and coverages for the protection you need.