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Could someone explain drone insurance?

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I have a bunch of questions about drone insurance that I'd like to have answered. I'm sure I can look them up, but I'm partly too busy, and mostly too lazy?. Anyway, here they are:
1. Do you need drone insurance?
2. Does drone insurance replace your drone if it's crashed?
3. Does drone insurance cover any damage caused by your drone?
4. Do insurance rates go up when you crash your drone?
5. Is it better to purchase insurance that you turn on when needed, insurance that is always on and you make monthly payments, or insurance that you make one payment for a years worth?
6. Do insurance rates go up if you have more drones?
7. I have a Smart Controller. Could I put that in insurance too?
8. What is the best amount of drone insurance to have?

I know I have a few more questions, but they've escaped me at the moment?. I know that's not the appropriate emoji, but you get the point.?
 
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All besides #1 depends on which insurance you go for ... And #1 ... in some countries it's mandatory ... in others it's up to you.

Guess you after all need to set aside some time & do the groundwork by your self ... ;)
 
State Farm offers drone insurance?
They do under a Personal Articles policy which is not connected to your homeowners insurance. And you get reimbursed without recovering the drone.
For liability, get an Umbrella policy from State Farm.
 
For liability insurance for recreation, why not just join the Academy of Model Aeronautics which provides liability insurance as a membership benefit? Full membership includes $2.5 million coverage.
 
Thanks for the reference link. I do not see the word drone in their write up on the website. It also seems it is geared toward "hobby" vs. 107 activities. I will look into it but not sure it applies. Thanks again.
 
In a nutshell, State Farm is $45 per year here in western PA and you don’t need to produce the drone to collect. If it’s stuck in a tree or at the bottom of the ocean, your still covered. The possible downside is I’ve heard they could drop you after the first claim.
The DJI insurance is available but you have to recover the damaged drone. You get two replacements but the cost is dependent on the model and, unlike SF, there is a deductible. It’s best to get DJI insurance within the first 48 hours of activating your drone. Neither type covers liability. Best wishes!
 
They do under a Personal Articles policy which is not connected to your homeowners insurance. And you get reimbursed without recovering the drone.
For liability, get an Umbrella policy from State Farm.
Does State Farm cover Part 107 flights?
 
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I have a bunch of questions about drone insurance that I'd like to have answered. I'm sure I can look them up, but I'm partly too busy, and mostly too lazy?. Anyway, here they are:
1. Do you need drone insurance?
2. Does drone insurance replace your drone if it's crashed?
3. Does drone insurance cover any damage caused by your drone?
4. Do insurance rates go up when you crash your drone?
5. Is it better to purchase insurance that you turn on when needed, insurance that is always on and you make monthly payments, or insurance that you make one payment for a years worth?
6. Do insurance rates go up if you have more drones?
7. I have a Smart Controller. Could I put that in insurance too?
8. What is the best amount of drone insurance to have?

I know I have a few more questions, but they've escaped me at the moment?. I know that's not the appropriate emoji, but you get the point.?
Have you ever used LAANC or KittyHawk? LAANC has a feature of drone insurance. Sign up for a free account. You choose when the insurance applies. Every flight you choose to have insurance is $25. This will cover your drone(s), damaged property, hospital bills, and anything up to 5M. Haven't checked for a while if it still covers 5M, because they had a few recent updates. Check that out if you want. The app is free. The only time you pay is $25 every flight you choose to have insured.

1. No you are not required to have insurance for recreational pilots.
2. Yes
3. Yes
4. No, at least for LAANC
5. 1st choice, if you pick LAANC
6. No
7. NA with LAANC insurance

Not familiar with other insurance like state farm, if they even cover drones, but LAANC is a great insurance system.
 
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Does State Farm cover Part 107 flights?
I don't think so as it would be a commercial operation, as opposed to strictly a hobby activity.
 
There are 2 guides that I usually recommend that have all the answers (and then some).

01. UAV Coach - Guide
02. DJI Enterprise - Guide


1. Do you need drone insurance?
Drone insurance is not mandatory (in the US) however it is becoming a standard requirement on all commercial drone ops

2. Does drone insurance replace your drone if it's crashed?
This part is called Hull Coverage. It can cover crash, ground coverage, theft and fly-away.

3. Does drone insurance cover any damage caused by your drone?
This part is called 3rd party aviation liability and includes bodily injury and property damage in all standard policies. It can also include medical expenses and personal injury (privacy claims). If you are flying commercially make sure your policy covers commercial ops (will require part-107 of course).

4. Do insurance rates go up when you crash your drone?
Depends on each company's policy.

5. Is it better to purchase insurance that you turn on when needed, insurance that is always on and you make monthly payments or insurance that you make one payment for a years worth?
This depends on your workload, requirements and scheduled flights. Per-flight insurance will cover you in a specific time and location while monthly and annual plans will cover you anytime and anywhere.

6. Do insurance rates go up if you have more drones?
This changes across policies and coverages. For example, our liability coverage will cover all drones under one policy with no added premium.

7. I have a Smart Controller. Could I put that in insurance too?
Yes. Mounted and directly related equipment can be covered.

8. What is the best amount of drone insurance to have?
Totally depends on the industry you work in and your business requirements.
 
I’m a public insurance adjuster. I think it’s better to be insured and not need it than to need it and not be insured. Each state/country has their own insuring requirements.

Here on the US, if you’re flying on a recreation flying only basis, I’d suggest get the manufacturers additional warranty coverage as well as a policy like the State Farm one many suggest. It’s a great deal, especially if you’re unable to recover a crashed drone.

If you’re flying commercially and have a 107, I’d suggest you get fully insured with liability. The possibility of taking out someone’s eye, causing a fire, etc is always there.

Right now we have had a lot of wind and flood damage across the islands and you’d be surprised at how many people excluded flood insurance on their homes. The median price of a single family home on Kauai is 1mm. Imagine to their surprise when their home is considered a total loss and they chose not to get flood insurance?
 
If you are a Minnesota Pilot, MN DOT Aeronautics requires a Minnesota Drone Registration ($100/year, but first year is retroactive to the date you register....and it's required. You pay a penalty if you have the drone for more than 20 days in Minnesota and have not registered), Registration requires a Certificate of Insurance (which means that if all you wished to use was "per-flight" insurance, Minnesota won't accept that for a Certificate of Insurance...you can do an "add-on" of per-flight insurance, I believe, if you wish but you have to have at minimum $100,000 per "passenger seat liability" both for passenger bodily injury or death and for property damage; not less than $100,000 for bodily injury or death to each nonpassenger in any one accident; and not less than $300,000 per occurrence for bodily injury or death to nonpassengers in any one accident. I know Farm Bureau's homeownner's policy covers these minimums (for drone use), but the homeowner's doesn't cover commercial operations. A separate policy is needed for that from Farm Bureau.

If you are doing commercial operations, then you also have to pay a $30 license fee per year to MN. In addition, when you first purchase your drone, keep your purchase documentation, especially for showing prrof that you paid taxes on the purchase. If you don't have that proof, or you didn't pay tax on the purchase of the drone, then MN will include that unpaid tax as part of your initial registration for that drone.

As far as I know, MN is the only State that has these rules. On top of that, while drone use in State Parks isn't technically illegal and is "Discouraged", MN State Parks don't allow landing a drone inside of MN State Park boundaries. Also, MN right now is still giving local government (City & County) the ability to enact their own drone rules within their jurisdiction. One county (Anoka County, NW of the Twin Cities) has a requirement to ask for permission to fly in a County Park, and I know of one city at this time ("St. Boni", or St. Bonifacius) which is just west of the Twin Cities Metro area doesn't allow them at all in City Limits, and I am uncertain at this time if St. Boni has a way to get permission to fly there. So, be prepared to have to ask, or double-check on those potential "hidden rules" beyond what the airspace, FAA, Kittyhawk/Aloft aft tells you. It's a pain.

Minnesota Drone Rules: Aviation: Minnesota Department of Transportation
Article about MN DNR and Drone Use in State Parks from the Minnesota Conservation Magazine online article: Feature: Flight Plan | May–June 2021 | Minnesota Conservation Volunteer
 
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