Newbie mistake

[msinger]

Correct, but will it be subject to your deductible?

I don't know. If you have Erie, you should call your agent to get more details about your personal policy.

 

[kjcbid54]

Mine is $250

So just take that into consideration if comparing to SF with $0 and a $60 premium. You can buy 4 years of SF coverage for the cost of one deducitble charge on your Erie HO policy. The choice is yours, it's just good to get all the fact out there for consideration, also many people have a higher deductible than $250. Lastly, a personal articles policy has broader coverages than a HO personal property coverage.

 

[kjcbid54]

I don't know. If you have Erie, you should call your agent to get more details about your personal policy.

It was a rhetorical question. I do not have Erie as my coverage. I was originally responding to the OP that stated that Erie provides coverage by default. This is partially true and better definition of "coverage" should be put out there before people just think that they are "covered." I am a licensed insurance agent, so I deal with the coverage definitions all the time. Whether it be for home or auto coverage, the terms can be misleading and there is a lot is misconception about insurance coverage as a whole. I'm just trying to share knowledge.

 

[msinger]

I am a licensed insurance agent, so I deal with the coverage definitions all the time.

What happens when someone makes a claim for the insurance you sell? A SF policy with $0 and a $60 premium sounds like the obvious choice, but it doesn't seem SF would be able to run a profitable business if they allow someone who makes a claim (or multiple claims per year) to keep renewing at $60/year. It all sounds a little too good to be true.

 

[kjcbid54]

What happens when someone makes a claim for the insurance you sell? A SF policy with $0 and a $60 premium sounds like the obvious choice, but it doesn't seem SF would be able to run a profitable business if they allow someone who makes a claim (or multiple claims per year) to keep renewing at $60/year. It all sounds a little too good to be true.

Policies are written and premiums are calculated on risk of loss. SF has been in business for a 100 years, and they write millions of dollars in premiums. Their risk is diversified over astronomical amounts of premiums collected. They are not simply looking at a $60 policy with $2000 of potential loss. It's part of a much bigger picture. SF's business model is based on independant agents (almost like franchisees). SF wants to be able to offer their agents multiple policy lines to target as many clients as possible, sometimes simply as a way to increase the number of policies written. To their calculations, sometimes they can take a "loss leader" like a personal article policy to earn a client. The most difficult part is getting someone to call to get a policy written. Once that "marketing" is done, they use that opportunity to offer their other products, like, Life Insurance, Banking, Loans. SF is very diversified so these $2000 risk policies are not a concern, it's great marketing to get someone into their agency.

 

[kjcbid54]

What happens when someone makes a claim for the insurance you sell?

When a claim is made, the loss cause is determined and the coverage is reviewed to make sure it's a covered peril. If it is a covered peril, the claim is paid out as per the policy stated amounts. It's really as simple as that. Then each risk (customer) is reviewed by underwriting upon renewal by underwriting to see if the risk still meets their underwriting guidelines. If they do, they are renewed, if not, they are non-renewed. In the US, there are strict insurance laws that protect the insured and those laws are monitored by each state. Each insurance company must disclose there methods of calculating premiums and their underwriting guilelines to the state and cannot change either of those once a policy has been written unless prior notice of change is approved by the state and written notice given to the insured well in advance.

 

[GerryGM]

Just a comment. If you bought your drone through Costco, they will double the manufactures warranty with almost all electronic items. Another factor is they will take back almost anything if you don't like it, break it, or crash it.

 

[offtheback]

Just a heads up to the $0 deductible in Fl. My agent (Rocco English in Orlando, talk to Lauren) explained to me the $60 had a $100 deductible, I paid $75 for the $0 for the year.

I too insure with Rocco.They know drones.

 

[Bigbird48]

Why not join AMA they have a pretty good Ins Policy for Drones and it covers a lot more $75 a Yr $65 for Seniors

$2,500,000 personal liability insurance coverage
$500,000 personal liability insurance coverage limit
$25,000 Medical Coverage – AD&D Policy ($10,000 Death Benefit)
$1,000 Fire, Theft, and Vandalism coverage
Access to low-cost commercial liability insurance learn more

 

[MavicMikeK]

State Farm is just as good or better than Refresh. $0 deductible.

I agree, I recently bought personal property coverage from State Farm for my new MPP for $60 per year, covered for everything with zero deductible. Best 5 bucks a month I've ever spent, even if I never have to use it the peace of mind is worth every penny. I'm nervous every time I fly and having this added insurance is very calming... in addition I'm also an AMA member in my local RC Club which covers liability too.

 

[skiptv]

Take a course before you fly.

 

[Frankied24]

I am not sure about the comments against Best Buy's extended warranties. My experience is with a Samsung Smart Watch not a drone but...

I had a cheap version Samsung Smartwatch and kept breaking the cheap plastic band. Each time it broke I brought the watch to Best Buy and they gave me a brand new watch. The third time it happened in 3 years they exchanged it for a brand new high end Smart Watch and all I had to do was pay the difference in price. This was almost 3 years after I purchased the watch
There was only a couple weeks left on the warranty.

 

[Wyojet]

I guess that when in doubt, go with the sure thing.

Or kill it n let God figure it out. ?