Drone insurance with a twist

[DJ Wes]

I want to share a story about getting drone insurance. I’ve seen many stories about drone insurance (and DJI Care Refresh) but none describing what I experienced. I think you will find this interesting.

I recently bought a new drone. It is Mavic 2 Zoom. Because of its expense, and the fact that it could be damaged or lost, getting insurance for the drone seemed like the logical thing to do. I researched DJI Care Refresh and then called by home/auto insurance company to see what they had to offer.

I’m guessing most everyone here is at least somewhat familiar with DJI Care Refresh. It costs $139 for one year of coverage of a new Mavic 2. It will provide up to two replacement Mavic 2 drones during the first year ($119 for the first replacement and $139 for the second). It can be extended for one additional year if you haven’t already used both replacement options in the first year. You must send in your damaged drone for it to be repaired. Therefore, a lost drone is generally not covered. While there are reports of people having a good experience with DJI Care Refresh, I’ve seen way too many reports of people experiencing problems such as not receiving properly fixed drones when a claim was made.

I called my insurance company. I don’t necessarily want to say what the name of the company is because I don’t believe my insurance company is particularly unique among insurance companies. I asked about drone insurance – both liability insurance in case my drone causes damage to someone else’s property and coverage for the drone itself in case I have an accident and need to have it repaired. I was told that the liability portion is already addressed through my current home insurance policy and the drone damage insurance could be covered under a new “personal articles” policy.

Based on the list price of the Mavic 2 Zoom, the “personal articles” policy would cost me $50 per year with a $50 deductible per incident. Coverage is pro-rated depending on the age of the drone. I asked a few questions specific to my situation because I travel overseas with my drones:

• Is the drone covered while outside of the USA: YES
• Is the drone covered if lost or damaged while in transit: YES
• Is the camera (the most expensive part of the drone) covered: YES
• Is the drone covered if I lose it such as if I crash it into a lake: YES

Since this insurance was cheaper than DJI Care Refresh and it covered events that DJI Care Refresh did not, I opted to buy it.

Now for the twist.

Upon completing the purchase of my new “personal articles” policy, I was told by the insurance agent that because I am adding a new type of policy (I already had both my home and car insured from the same company), I will receive an additional multi-policy discount on my home and car insurance. The discounts would be $15 off my automobile and $59 off my home insurance. So, buy purchasing a $50 “personal articles” policy, I received a discount of $75 dollars off of my other policies. I said to my agent: “Am I hearing you correctly? If I spend $50 on this new insurance I save $75 off of my existing policies?” She verified that this was true.

Using my insurance company for drone insurance was already a “no-brainer” based on the cost and coverage. With the discounts it more than pays for itself! Has anyone else experienced this?

 

[Rcough]

I want to share a story about getting drone insurance. I’ve seen many stories about drone insurance (and DJI Care Refresh) but none describing what I experienced. I think you will find this interesting.

I recently bought a new drone. It is Mavic 2 Zoom. Because of its expense, and the fact that it could be damaged or lost, getting insurance for the drone seemed like the logical thing to do. I researched DJI Care Refresh and then called by home/auto insurance company to see what they had to offer.

I’m guessing most everyone here is at least somewhat familiar with DJI Care Refresh. It costs $139 for one year of coverage of a new Mavic 2. It will provide up to two replacement Mavic 2 drones during the first year ($119 for the first replacement and $139 for the second). It can be extended for one additional year if you haven’t already used both replacement options in the first year. You must send in your damaged drone for it to be repaired. Therefore, a lost drone is generally not covered. While there are reports of people having a good experience with DJI Care Refresh, I’ve seen way too many reports of people experiencing problems such as not receiving properly fixed drones when a claim was made.

I called my insurance company. I don’t necessarily want to say what the name of the company is because I don’t believe my insurance company is particularly unique among insurance companies. I asked about drone insurance – both liability insurance in case my drone causes damage to someone else’s property and coverage for the drone itself in case I have an accident and need to have it repaired. I was told that the liability portion is already addressed through my current home insurance policy and the drone damage insurance could be covered under a new “personal articles” policy.

Based on the list price of the Mavic 2 Zoom, the “personal articles” policy would cost me $50 per year with a $50 deductible per incident. Coverage is pro-rated depending on the age of the drone. I asked a few questions specific to my situation because I travel overseas with my drones:

• Is the drone covered while outside of the USA: YES
• Is the drone covered if lost or damaged while in transit: YES
• Is the camera (the most expensive part of the drone) covered: YES
• Is the drone covered if I lose it such as if I crash it into a lake: YES

Since this insurance was cheaper than DJI Care Refresh and it covered events that DJI Care Refresh did not, I opted to buy it.

Now for the twist.

Upon completing the purchase of my new “personal articles” policy, I was told by the insurance agent that because I am adding a new type of policy (I already had both my home and car insured from the same company), I will receive an additional multi-policy discount on my home and car insurance. The discounts would be $15 off my automobile and $59 off my home insurance. So, buy purchasing a $50 “personal articles” policy, I received a discount of $75 dollars off of my other policies. I said to my agent: “Am I hearing you correctly? If I spend $50 on this new insurance I save $75 off of my existing policies?” She verified that this was true.

Using my insurance company for drone insurance was already a “no-brainer” based on the cost and coverage. With the discounts it more than pays for itself! Has anyone else experienced this?

Yes. I called my insurance co this past Tuesday and got the same info. I’m covered.

 

[harraizon]

But if you file a claim, could it drive up your home insurance cost and affect your ability to get future insurance at a low rate?

 

[DJ Wes]

But if you file a claim, could it drive up your home insurance cost and affect your ability to get future insurance at a low rate?

Hi Harraizon,

That is a good question and I have two responses:

1) If the fear of higher insurance premiums outweighs your desire to insure something, don't buy insurance.
2) If one has an automobile accident and makes a claim, the only insurance it may affect would be their automobile insurance, not their home owner's insurance. In the same way, if one makes a claim to their "personal articles" insurance, it would not affect their other insurance policies.

 

[harraizon]

I do remember this being an issue with State Farm, or at least some people’s agents were telling them that this was going to be an issue. My understanding is that personal items policies are an add on to a homeowner’s or renter’s policy and could thus affect those much larger rates for the relatively small drone claim. Curious to know what you find out.

Another thing to think about: I’m a professional photographer and I have to carry photo specific commercial insurance. If you are a hobbyist you can use your homeowner’s-type insurance but as soon as they find out that you’re using the gear commercially, they won’t cover a claim. Something to think about, especially if you have your part 107.

I have a great commercial policy with all sorts of coverage, but when I looked into adding my $1500 M2P, it would have raised my deductible from $500-$2500 and not just for the drone but for everything.

...so care refresh it is for me. Curious to hear what you figure out.

 

[tcope]

Coverage is pro-rated depending on the age of the drone.

You may want to check on this. What you mention is an Actual Cash Value policy. Personal Article policies (Inland Marine) policies are usually replacement cost. I say, _usually_.

 

[tcope]

But if you file a claim, could it drive up your home insurance cost and affect your ability to get future insurance at a low rate?

I _might_ but that is highly unlikely. Of course, your own carrier will know about this loss and it's very likely that the carrier will report your loss as a CLUE report, which means all other carriers will be able to see it as well. However, it's very unlikely that such a small claim would be held against the person.

 

[DJ Wes]

But if you file a claim, could it drive up your home insurance cost and affect your ability to get future insurance at a low rate?

Hi Harraizon,

I called my insurance company today and asked that question. They said that: “No. A claim made against a “personal articles” policy would not affect the premiums or renewability of the home or automobile policies.”

So, for those of you playing along, if you do contact your current insurance company for drone insurance, be sure to ask them all of these questions. In my case, I’m covered and I am receiving a net savings of $25 / year when compared to not having drone insurance. And, my drone insurance is “independent” of my other policies. However, as Harraizon pointed out, there may be subtle but important differences in the details among various insurance companies.

 

[harraizon]

Thanks for the update DJ Wes, sounds like you're all set!

 

[tcope]

I called my insurance company today and asked that question. They said that: “No. A claim made against a “personal articles” policy would not affect the premiums or renewability of the home or automobile policies.”

So, for those of you playing along, if you do contact your current insurance company for drone insurance, be sure to ask them all of these questions. In my case, I’m covered and I am receiving a net savings of $25 / year when compared to not having drone insurance. And, my drone insurance is “independent” of my other policies. However, as Harraizon pointed out, there may be subtle but important differences in the details among various insurance companies.

Almost undoubtedly you were speaking with the agent or even just someone in the agents office. While I tend to agree that such a small claim reported under it's own policy will not affect your other rates, there is that _slight_ possibility. If you want to test the validity of that person's statement, ask for the info in an email. I'd say there is a 99.99% chance that they won't want to commit to that in writing. Again, I would say that it is very unlikely that a claim would increase your other rates.

Something that will most likely happen is that a claim would show up on a CLUE report. This is a report that any insurance company can pull to view your claims history. Almost every carrier would pull this. I'd say that is is also unlikely that another carrier would hold a small claim against you.

But it is highly likely that the person you spoke to does not have any authority to tell you that a personal article claim _won't_ affect another policy. Again, if you want to test this, simply ask for it in writing (an email).

BTW, I think it is hilarious that a multi policy discount is more then the cost of the additional policy. Clearly no math is being done. I would run with this as long as possible. I' betting someone realizes this and corrects the error at some point. But it could be while.

 

[pftarch]

I do remember this being an issue with State Farm, or at least some people’s agents were telling them that this was going to be an issue. My understanding is that personal items policies are an add on to a homeowner’s or renter’s policy and could thus affect those much larger rates for the relatively small drone claim. Curious to know what you find out.

Another thing to think about: I’m a professional photographer and I have to carry photo specific commercial insurance. If you are a hobbyist you can use your homeowner’s-type insurance but as soon as they find out that you’re using the gear commercially, they won’t cover a claim. Something to think about, especially if you have your part 107.

I have a great commercial policy with all sorts of coverage, but when I looked into adding my $1500 M2P, it would have raised my deductible from $500-$2500 and not just for the drone but for everything.

...so care refresh it is for me. Curious to hear what you figure out.

I don't have an answer for your commercial work, but, State Farm sold me a stand alone policy for my Mavic Pro for about $60. I am pretty sure that it has no deductible. (I have no other insurance with State Farm and it does exclude commercial work.)

 

[Duane]

Called my State Farm agent here in Tennessee and was told drone insurance is not available. Was asking for ‘drone insurance’ the problem? Should I have asked for ‘personal items’ insurance? Or - is this a Tennessee issue or an agent issue?

 

[pftarch]

Called my State Farm agent here in Tennessee and was told drone insurance is not available. Was asking for ‘drone insurance’ the problem? Should I have asked for ‘personal items’ insurance? Or - is this a Tennessee issue or an agent issue?

Mine wasn't aware of it either, but he made some calls and found it. Mine is a "Personal Articles Policy" and it has the number FP-7940.2 on it's cover sheet. And, as I understand it, you can put up to $5000 worth of items on it. I haven't taken advantage of that yet, as I just have my Mavic on it. (They won't cover phones though.)

Maybe it isn't available in Tennessee, but it is in New Hampshire.

Good Luck!

Peter T

 

[Burk]

I have my P4P and M2Z on my State Farm PAP. I have no other State Farm insurance other than this policy. $65/year total includes both birds.

 

[baddog]

I want to share a story about getting drone insurance. I’ve seen many stories about drone insurance (and DJI Care Refresh) but none describing what I experienced. I think you will find this interesting.

I recently bought a new drone. It is Mavic 2 Zoom. Because of its expense, and the fact that it could be damaged or lost, getting insurance for the drone seemed like the logical thing to do. I researched DJI Care Refresh and then called by home/auto insurance company to see what they had to offer.

I’m guessing most everyone here is at least somewhat familiar with DJI Care Refresh. It costs $139 for one year of coverage of a new Mavic 2. It will provide up to two replacement Mavic 2 drones during the first year ($119 for the first replacement and $139 for the second). It can be extended for one additional year if you haven’t already used both replacement options in the first year. You must send in your damaged drone for it to be repaired. Therefore, a lost drone is generally not covered. While there are reports of people having a good experience with DJI Care Refresh, I’ve seen way too many reports of people experiencing problems such as not receiving properly fixed drones when a claim was made.

I called my insurance company. I don’t necessarily want to say what the name of the company is because I don’t believe my insurance company is particularly unique among insurance companies. I asked about drone insurance – both liability insurance in case my drone causes damage to someone else’s property and coverage for the drone itself in case I have an accident and need to have it repaired. I was told that the liability portion is already addressed through my current home insurance policy and the drone damage insurance could be covered under a new “personal articles” policy.

Based on the list price of the Mavic 2 Zoom, the “personal articles” policy would cost me $50 per year with a $50 deductible per incident. Coverage is pro-rated depending on the age of the drone. I asked a few questions specific to my situation because I travel overseas with my drones:

• Is the drone covered while outside of the USA: YES
• Is the drone covered if lost or damaged while in transit: YES
• Is the camera (the most expensive part of the drone) covered: YES
• Is the drone covered if I lose it such as if I crash it into a lake: YES

Since this insurance was cheaper than DJI Care Refresh and it covered events that DJI Care Refresh did not, I opted to buy it.

Now for the twist.

Upon completing the purchase of my new “personal articles” policy, I was told by the insurance agent that because I am adding a new type of policy (I already had both my home and car insured from the same company), I will receive an additional multi-policy discount on my home and car insurance. The discounts would be $15 off my automobile and $59 off my home insurance. So, buy purchasing a $50 “personal articles” policy, I received a discount of $75 dollars off of my other policies. I said to my agent: “Am I hearing you correctly? If I spend $50 on this new insurance I save $75 off of my existing policies?” She verified that this was true.

Using my insurance company for drone insurance was already a “no-brainer” based on the cost and coverage. With the discounts it more than pays for itself! Has anyone else experienced this?

You did not mention if you were part 107 or not and if you told your insurance company you were flying commercially or recreationaly.

I am a part 107 commercial pilot. Just the oppisite in Central NY. I went through my regular Ins. broker who takes care of my home and automobile policies and also a very flimsy business liability policy. (Another long story). They could not find one Insurance Company that would offer Drone liability coverage, and just forget about hull coverage all together.

I had to go through the AMA's Commercial Drone Coverage offer to get it.

 

[DJ Wes]

You did not mention if you were part 107 or not and if you told your insurance company you were flying commercially or recreationaly.

You are correct baddog, I forgot to mention that. They did ask if I used the drone commercially. I told them that I only fly recreationally (section 336).

 

[Andrewandron]

I live in Nova Scotia and I don’t think anyone insures drones around here. Anyone know of any?

 

[seowashdc]

Called my State Farm agent here in Tennessee and was told drone insurance is not available. Was asking for ‘drone insurance’ the problem? Should I have asked for ‘personal items’ insurance? Or - is this a Tennessee issue or an agent issue?

nope, I'm here in Maryland and use State Farm for my home and truck, and my agent said SF doesn't cover drones. Clearly there's a disconnect somewhere with such inconsistent responses. Anyways, I use my drones commercially, so I have a separate liability/hull replacement policy. It's pricey, but I'm also covered for any liability up to $1M USD and I get a lost/destroyed drone replaced.