Before you plan to spend any extra money on your brand new drones. You will need to obtain drone insurance coverage to protect your drones as well as potential liability costs. In our drone insurance article, we have created a completed, detailed reference to help new and experienced drone owners get the most bang out of their insurance coverage.
How much does a Drone Insurance cost and how do I get it insured?
The cost to cover your drone widely depends on which insurer you are planning to get from. It also depends on the type of drone you have and how you use it for your business or recreational purpose. You might likely have coverage for drone damage and liability through your home insurance policy.
We will go through the basics of what you need before shopping for the right insurance. Furthermore, we will look at if you need to obtain additional insurance and how to get at a low cost. Plus, we have a couple of helpful insurance checklist to help you keep track. Lastly, we have some cool resources for you as a drone owner.
Do You Need to Buy Insurance for Your Drone?
In the past few years, drones have become more and more popular. Federal Aviation Administration recently released its research that the number of drones in the sky is expected to increase by tenfold in 2021. That is a huge jump and it also recruits higher risk as more people are flying their drones in the sky.
The use of drones has grown dramatically especially for hobbyists and photographers. Some of the high-end drones have become heavily gifted for special occasions like Christmas and Black Friday. Even though, some pilots still fly them for fun.
Insurance Coverage for Hobby and Recreational Drones Damage
Generally, the drones can cost between $20 to $2,500. Popular drones such as DJI Mavic Pro 2 (See Price) and Phantom 4 Pro (See Price) are valuable and require drone insurance to protect the asset. It is a no exception why you might want to know if your drones are covered on a homeowner insurance policy.
The great news is that the majority of the insurers will provide coverage for the drones. Due to the way their policy is written, they can ensure your drones in the same way they would cover your personal property and contents. However, it is highly recommended that you check with your specific insurers. The likelihood is that you might not have to pay extra to keep your drones insured!
FAA Drone Regulations
In December 2015, the Federal Aviation Administration requires that you register your drones. Since its implementation, the regulation has evolved. Therefore, it is encouraged that you check the FAA government website to stay updated on new regulations and changes. With the regulations implemented, it is completely normal for drone owners to wonder about the liability insurance requirements for the drones.
Requirements for Insuring Drones
The insurance doesn’t say anything about registering your drone or not. However, how you use your drone is important because that is what they will cover under a homeowner’s policy or not.
I am Flying My Drone for Commercial Purpose, Do I need Insurance?
If you only plan to fly your drones for personal or recreational use. Then there is no obligation to obtain insurance coverage for your drones. But, if you are flying your drones for commercial purposes. It is strongly encouraged that you get liability insurance to protect your investments. Based on the number of accidents due to pilot error and out-of-blue glitches, the insurance coverage will keep yours out of pocket expenses low.
There are many options to obtain insurance for your drones or unmanned aerial vehicles. In each section of the drone insurance article. We will cover low-cost options that you can get for your drones as well as conditions and restrictions. Also, we will cover additional useful resources for new and experienced drone owners. Let’s get the ball rolling now.
Do I need an Insurance for my Drone and What are the Risks?
We might see the drones as a fancy cool fun toy. But the reality is that the drones are quite more capable than your average “toy”. The FAA classifies most of these drones as aircraft. Also, it depends on how your home insurance policy is interpreting your use as well as their comfort and will level to provide support for the drones. Depending on your home insurer, you may or may not have coverage for personal liability protection.
The good news? As you continue to read on, you will see that there are a lot of options to choose from if your home insurer doesn’t agree to provide liability coverage for your drones. Moreover, it doesn’t have to cost that much either.
What is the Cost of Drone Insurance?
Before we go into the details, I want to provide you examples where the personal use of drones resulted in injury. Once you understand the risks of drones, you wouldn’t want to take the risk of not having liability insurance coverage. Especially if you can get it for free or just merely under $100 a year, right?
How many Drone Accidents Happen?
Believe it or not, you will be surprised to see how often drone-related accidents that are documented in the United States. The majority of the incidents involve drones running out of power and in some cases where the operator lost control of their drone. Not all of these situations are caused by reckless operation.
Anyone who is involved in the operation directly or indirectly can experience a dangerous situation that will end up hurting people, damaging property of other people or even damaging public property that will result in high costs, medical expenses and personal injury.
Therefore, I am going to show you examples of how the insurances can help you if you are involved in drone-related accidents:
Examples How Insurance can Help You in Drone-Related Accidents:
- You are flying your drone and it hits an electric line. All the power goes out in the neighborhood. The cost to repair the electric lines and damage to all the citizens in the area. These accidents aren’t minor but they can happen easily if you don’t pay attention.
- In the United Kingdom, a man who was flying his drone which he thought was safe to do so. He lost the control of the drone and the propellers sliced a toddler’s eye in half. The medical expenses and damage he could be held for are beyond extreme.
- A wedding photographer who was flying his DJI Phantom quadcopter accidentally hit into the groom’s face. He suffers a cut on his cheek and side of the head.
- Imagine yourself flying the drone over a neighborhood property. All of sudden, the battery is dead and the drone comes down, crashing on their property. Your drone is shattered to pieces and their property has been damaged. Who is going to pay for all these damages?
Now that I have laid out examples for you to understand the risks that drones bring. Let’s find out where and how you can get insurance coverage for your drones!
Does Your Homeowner Insurance Policy Protect You?
Before you worry about getting liability coverage for your drones. First, contact your home insurance representative and ask them how their liability coverage policy will cover your drones.
It all depends on the type of insurance companies you have. Some will be willing and some won’t. Insuring your drones arises from the use and ownership of a drone due to the fact it is considered as an aircraft. However, a majority of insurers sees the use of drones as a hobby aircraft.
This might change somewhat in the future if the insurance companies tally up losses and incidents caused by rising claims and damages from drones. Therefore, there is a good chance that your homeowner insurance policy might provide you liability coverage for your drones. The only way to make sure that you have it is to contact your insurance company and ask them how they view drones about the insurance definitions stated in the policy.
Concerns with Drones when it comes to Liability:
- Personal Injury
- Invasion of Privacy Claims
- Damage to Public or Private Property
- Medical Expenses
If you are not sure what to find out the extent that your insurers will cover for the drones. Keep on reading, we will cover it in the next part.back to menu ↑
What Questions to Ask Your Insurance about Your Drones?
Getting your drone insured is a big deal. But you will need to ask your insurance company questions about your drone and how much liability are they willing to cover for you. In the same way, you research your drone before purchasing it and asking questions that you made sure you are getting the best drone. You want to find out all the information about how your homeowner policy can protect your drone. Below are several general questions you can ask your insurance company about:
Is Your Drone Insured?
- Is the damage to your property covered if you damage it with your drone. For instance, if your drone crashes into your property or any type of structure. Will your insurance company cover it?
What happens if your drone damages someone else’s property?
- How much are you insured for liability?
- How much is your drone insured for?
- Are there any exclusions or limitations?
- What is the deductible?
- What is the maximum amount your insurance company will pay for damage to the drone itself?
- Ask if the coverage is All Risk Coverage or is it only Named Perils?
- Ask if you can schedule your drone on a special endorsement?
Do I need to Tell My Insurance about My New Drone?
Absolutely. You should contact your insurance company and inform them that you have a drone so you can find out if they will cover it or not. The call typically is very simple and only takes two minutes. It is worth the time to protect your assets. By contacting your insurance company, you will be able to gather the idea of what is protected and what not.
Information Checklist if You Need to Call Your Insurance about Your Drone
Before you call your insurance company. Please be ready to provide them the following details that will help your insurance representative make an informed decision whether your drone can be insured under your homeowner policy. In certain cases, being able to provide all the details will make it very easy for your agents to negotiate the most favorable terms for you.
Can Drone Racing Be Insured?
The drone racing is becoming an extremely popular sport. However, before you get involved. You want to contact your insurance to see if they will cover it for you. It is extremely unlikely that your insurance company will provide coverage because the policy traditionally contains exclusions for competition or racing.
Is Drone Racing Insured?
Drone racing is turning into a really popular sport, but before you get involved, you might want to call your insurance. It is highly unlikely that racing activity would be covered for your personal use drone. Insurance policies traditionally contain exclusions for competition or racing.
Insurance for Personal Use or Recreational Drones
Remember, your inquiry may be one of the first your agent or representative gets regarding drones, so the more prepared you are, the easier it will be. Ensuring personal use drones is a new area for insurance professionals and they will likely want as much information as possible. Using a checklist like the one below will be the first step in showing them that you are a good risk and get insurance confirmed easily.
Checklist of Information to Provide Your Insurance Regarding Your Drone
- Will your drone be used for commercial or recreational purposes?
- Who will fly the drone? (They will ask for the age of those who fly the drone).
- Will the drone be used for competition or racing?
- How high will you fly the drone?
- Where will your drone land and takeoff (Asphalt, sand, grass, etc)
- Drone Model, Make and Serial Number
- Is Your Drone Registered?
- Are you traveling around the world with your drone? (See our travel tips with your drone and check our drone laws by country articles)
- Are you part of any drone organizations that encourage safe flight practices, let them know! It helps the insurance company know that you are interested in safety and taking precautions.
- Have you attended any drone training to learn how to fly safely or Competency Certification? It is great to mention these to your insurance company.