Insurance and State Farm

[tcope]

Aren't you afraid that if you make a claim on your DSLR you won't be able to renew it for your drone. It's such an awesome policy I would hate to waste it on my DSLR.

A policy starts and ends. If the carrier chooses to write the policy again, they can make this offer. If a person makes a claim, the insurance company can choose not to write any new policy once the old one expires. There certainly is a good chance of this.

But what you suggest is getting a policy and then never making a claim when you have a loss. So you just want to pay the premium for, what amounts to, no coverage. If a person makes a claim and the insurance company does not renew the policy, then you walk away with paying $60 for a $1000 check. Certainly better then paying $60/year and never filing a claim.

 

[chris wentka]

Aren't you afraid that if you make a claim on your DSLR you won't be able to renew it for your drone. It's such an awesome policy I would hate to waste it on my DSLR.

I have everything in a camera backpack. If it gets stolen while im traveling or I drop it then it will be covered. My dslr is more expensive than the mavic also. The agent told me the policy is $60 whether I just had the drone on it or put all of the items on it so why not have everything covered. She also told me I can add anything I want to the policy now for very little extra money

 

[Roc Rat]

My drone is covered at no additional cost under my homeowners insurance with USAA as long as it is for hobby use and not commercial.

 

[erkme73]

Keep in mind that any claim on a personal articles policy will reflect negatively on your insurance risk rating (like a credit score, but handled through ChoicePoint/LexisNexis). Do not underestimate the impact this may have on your ability to qualify for the lowest rates when your renewal comes up on your homeowners policy.

State Farm agent in Orlando explained it best. She said a PAP claim is recorded in ChoicePoint. That means when you renew with ANY insurer, they will see the claim. Whether they use that to justify higher rates is debatable - but it is a risk.

Remember, there is no free lunch. Why do you think Geico donates millions of dollars in free radar/laser equipment to police departments across the US? Because each ticket and/or claim is another reason to raise your rates.

 

[Roc Rat]

Keep in mind that any claim on a personal articles policy will reflect negatively on your insurance risk rating (like a credit score, but handled through ChoicePoint/LexisNexis). Do not underestimate the impact this may have on your ability to qualify for the lowest rates when your renewal comes up on your homeowners policy.

State Farm agent in Orlando explained it best. She said a PAP claim is recorded in ChoicePoint. That means when you renew with ANY insurer, they will see the claim. Whether they use that to justify higher rates is debatable - but it is a risk.

Remember, there is no free lunch. Why do you think Geico donates millions of dollars in free radar/laser equipment to police departments across the US? Because each ticket and/or claim is another reason to raise your rates.

Excellent points to consider.

 

[AClineman]

Sounds like this is for coverage for the drone only. Does it cover any damage the drone might do you other people’s property like collision and liabiyfor automobiles or would that be a separate policy?

 

[Budge]

I just got a policy from State Farm for ALL of my drone equipment for $60/year. I took everything I use into the insurance office, including the MP Fly More Combo, iPad Mini 4, tablet bracket, sun shield, landing gear, drone wrap, DroneKeeper Mini, GetterBack, polarized ND filters, drone backpack, etc. The total value was just under $2500. I provided an itemized spreadsheet with part numbers, serial numbers (if available), purchase price, retailer, and purchase dates for every item. They told me this is exactly the same as someone insuring their camera equipment for loss, theft, or damage. If my drone crashes, though, I'm not going to make a $2500 claim. I'm going to claim the cost of replacing my drone (or repair) only. The only reason I insured all of it together for the full value is in case it's stolen.

 

[Mavic2StingRay]

The insurance I got was for the drone only.

 

[Rob W]

I am also paying $60 a year for my policy with State Farm Pap and I already just filed my second claim for a lost mavic and the check is already on the way and I'm still insured for my Phantom 4 Pro, and the representative told me to make sure I call them back as soon as I get my replacement drone so they can insure that one.

I had State Farm insurance. I had a loss, the drone was attacked be a bird an dropped into a lake.
They paid me the full price of my coverage, sent me a check promptly, then cancelled my coverage. When I talked to the agent he said because of the claim they wouldn't renew my policy.
I bought a DJI Mavic Pro with DJI care refresh. I just realized my refresh has expired and went to renew only to find that it isn't renewable. That sucks, now i'm flying naked. Before, I never worried about a problem,,,,,,, now it will bother me each time I fly. Maybe I need to sell and buy a new unit to get coverage.

 

[tcope]

If you insure your Drone through State Farm, or any casualty insurance company, ANY claim will be reported to Lexis-Nexis and will absolutely affect you and your insurance rates.

Truth is, you don't know this to be a fact and have nothing to support your statement.

There are _many_ carriers that won't change rates based on a small Inland Marine claim.

 

[tcope]

Sorry, it is a fact. Truth is, YOU know nothing.

I guess my 30 years working for about 10 different property & casualty companies is...
"nothing".

I don't care what it is, they ABSOLUTELY report ALL claims to Lexis-Nexis. How underwriters take into account the information and assess risk is as infinite as each individual firms procedures, but it's a function of the number of claims, and total payout, and a number of other factors as it relates to demographics, lifestyle, etc, etc.

While not all carriers report all claims, I've never denied this.

To suggest otherwise is patently FALSE. I have seen some premium insurers REJECT as high risk, ONE Roadside Assistance and ONE, No Fault auto accident in ONE year. No fault means, the other driver was at fault. 2 Claims in 1 Year = High Risk. Now, if you stick with the same insurer, it's doubtful they will drop you, and you probably won't notice the rate creep, but you'd be a fool if you thought ANY and ALL insurance claims are not factored in.

Again, I never denied that these claim were not reported or that the underwriter would see it on a CLUE report.

I didn't say just one Drone claim is going to turn your world upside down, BUT if you add in another claim for something else, you better bet things will get interesting. The fact is, a drone claim WILL be considered and WILL affect you, PERIOD.

Actually you did say just that...

If you insure your Drone through State Farm, or any casualty insurance company, ANY claim will be reported to Lexis-Nexis and will absolutely affect you and your insurance rates

There are many carrier that don't even report Inland Marine claims. There are many carriers that won't consider a small 1st party claim (around $1000) when considering rates. Heck, I had a $6,000 collision claim with USAA and my auto rates never went up.

 

[tcope]

You now seem to be trying to back track on your earlier proclamation.

I'm really wondering... where did I back track?

PS - We are talking about State Farm and not USAA. Btw, thank you for your service, or at least one of your relatives.

Just for full disclosure, I have never served. I worked at USAA for about 5 years.

 

[tcope]

I merely want folks to realize there are some potential pitfalls with insuring your drones through your primary casualty insurance company.

There certainly is. But it's not 100% certain that this type of claim _will_ increase a person's rate. I think it is important for people to know that. There are _many_ carrier that won't increase rates for such a small 1st party claim with another carrier. This is a property claim. It's actually very likely that a separate auto carrier won't increase your rates.

 

[jdcntulsa]

Does becoming an AMA member help. They seem to have the insurance liability coverage we need?

 

[Odom1957]

Just got insurance on my Mavic Pro from state farm and if you make a claim, it is listed as a fire claim, whatever that means, but it doesn't go against other insurance as far as rates. This is in the state of Florida. This also doesn't mean that State Farm will insure your replacement drone, but it doesn't mean that they won't. The coverage is for 1 year and my agent said if I do make a claim, then the new drone would go onto the remainder of the existing policy. Even if I had to buy new insurance for the new drone, I would only be out 40ish for the policy and 100 for the deductible. So, 140ish for a 1000 dollar check is fine by me!!!

 

[lenabanana]

Just got insurance on my Mavic Pro from state farm and if you make a claim, it is listed as a fire claim, whatever that means, but it doesn't go against other insurance as far as rates. This is in the state of Florida. This also doesn't mean that State Farm will insure your replacement drone, but it doesn't mean that they won't. The coverage is for 1 year and my agent said if I do make a claim, then the new drone would go onto the remainder of the existing policy. Even if I had to buy new insurance for the new drone, I would only be out 40ish for the policy and 100 for the deductible. So, 140ish for a 1000 dollar check is fine by me!!!

Seems like you got a different policy that some other people, most don't have a deductible.

 

[Odom1957]

It is a PAP policy, just like the others, but in Florida, there is a deductible. Florida insurance is weird with all the Past issues. I actually went to State Farm after hearing about it from some guy in Best Buy. He is paying 75 bucks a year for his with a 100 deductible. I think many people miss the fact that there is a deductible, since they are just issued a check for the difference. I insured mine for 1000, so the check will be for 900, but since I only paid 650 for mine, I will at least break even.

 

[lenabanana]

It is a PAP policy, just like the others, but in Florida, there is a deductible. Florida insurance is weird with all the Past issues. I actually went to State Farm after hearing about it from some guy in Best Buy. He is paying 75 bucks a year for his with a 100 deductible. I think many people miss the fact that there is a deductible, since they are just issued a check for the difference. I insured mine for 1000, so the check will be for 900, but since I only paid 650 for mine, I will at least break even.

Ah that makes sense

Your insurance agent didn’t ask for a proof of purchase?

 

[seowashdc]

So can I get some particulars about this? My brother who is a State Farm agent says this is impossible they will not cover drones because it is a huge money loss for them to ensure those. Any help would be greatly appreciated I just got notification that my DJI care refresh is about to expire I'd like to have something in its place if at all possible. 30 or $40 a year opposed to $80 for DJI care refresh would be a smart move

Yeah, my State Farm guy said drones are not covered. Because I live inside the Washington DC SFRA, but outside the DC No Drone Zone, I'm expecting to pay a lot of money for insurance, because Washington DC!

 

[Odom1957]

yes. Purchase Price, Retail Price, and Insurance amount desired. She said they normally will insure something above its retail price by a little in case of losing something with it, like data on a laptop, cards or lenses on cameras, extras like props, batteries, etc on drones.