Does Homeowners Insurance Cover Recreational Drones?
Drones are still relatively new in the eyes of regulators and insurance companies, so determining when your drone is and isn't covered can be difficult. Here's a good rule of thumb: If you have a drone and only use it for fun, your homeowners or renters insurance will most likely cover it.
When does insurance cover drones?
Your insurance company's coverage for your drone is determined by how you use it.
- Recreationally: Most homeowners insurance and renters insurance companies consider drones a model or hobby aircraft. If you use the drone for recreational purposes at least 90% of the time, your policy should cover it as personal property.
- Commercially: If you use the drone for business purposes, such as filming weddings for clients, you are using it commercially. Your homeowners or renters insurance will not cover the drone for commercial use.
If your insurance policy covers your drone, it should be protected from the "16 common perils," which include fire, theft, vandalism, and wind. An HO-5 policy, the most comprehensive type of homeowners policy, will cover any damage that is not expressly excluded.
- An HO-5 policy, for example, will almost certainly cover the drone if your child breaks it. However, if your drone is damaged in a natural flood, the policy will not cover a replacement.
Liability insurance
Your liability coverage under your homeowners or renters insurance policy should protect you up to the limits of your policy. Liability insurance typically covers:
- Medical bills
- Legal expenses
- Costs of repairing or replacing damaged property
- Invasion of privacy claims
However, it is critical to contact your insurer and inquire about drone exclusions. Most have cameras and other recording devices, making it easier to invade someone's privacy. If the breach of privacy was unintentional, your policy should cover you. However, if you are convicted of a crime, your insurance company may be reluctant to defend you.
How much does your homeowners/renters insurance cover?
If your drone is damaged or destroyed as a result of a covered peril, your homeowners or renters policy will cover you up to the limits of your personal property coverage, minus your deductible.
However, you must also consider the following factors:
- Additional limits: Some policies may impose additional limits on specific types of property, such as jewelry, electronics, or other high-value items. Contact your insurer to find out what, if any, limitations apply to drones.
- The deductible: If the cost of replacing or repairing the drone is less than or equal to your deductible, you may be better off not filing a claim, as your insurance premiums may rise as a result.
- The extent of liability coverage: If your drone damages someone else's property, causes injuries, or violates someone's right to privacy, your liability insurance will cover you. However, if your liability coverage does not cover all of the damage or medical costs, you may have to pay out of pocket.
- Your assets: We recommend carrying more liability coverage if you have significant assets because you stand to lose more in a lawsuit. Purchasing an umbrella policy, which takes effect after your homeowners liability coverage has been exhausted, is one way to increase your liability coverage.
How do you file a claim?
If your drone is involved in a covered incident, the following steps must be taken depending on the type of claim:
- Theft: If your drone is stolen, contact the police immediately and file a report. Request additional copies so that you can give one to your insurer and keep one for your own records. After that, you'll contact your insurance company to file a claim.
- Damage: If your drone is damaged as a result of a covered peril, photograph the damage and the source and save as much evidence as possible. Then, contact your insurer to file a claim.
- Liability incident: Contact your insurer immediately if the drone is involved in an accident in which you could be held liable for damages or medical costs.
Depending on the type of policy you have, your insurance may cover either the actual cash value of your drone or its replacement cost in the event of theft or damage. If you decide to file a claim, include pictures of the drone in its original condition if possible.
The nature of the incident influences liability coverage in part. If you intentionally caused harm or broke the law, your insurance will not cover you. However, if the incident was unintentional, you will most likely be covered.
Fill out a form and explain the specific nature of the claim when filing a claim. It's also a good idea to provide evidence and correspondence from third parties, such as information from attorneys or medical costs incurred by an injured person, if you have it. If a lawsuit is filed against you, you may be required to appear in court.