Drones and your Insurance Policy

Stephen Vaughn is up with another video on how you can make wise decisions with your insurance policies. This time, he went to a very specific item that almost all techie people love, the drones.

It seems like a small and trivial object to talk about but there’s more to drone than just the fact that it flies. Drones are pretty much the hippest thing to have. It can fly, it captures beautiful scenery from the sky, it can make your breathless moments into memories you can revisit. They are fun to have and playing with it is even more exciting. It is no surprising that many people are buying such item.

However, what people don’t know is that drones can get pretty pricey most especially if it causes damage to properties. Unfortunately, almost every insurance policy excludes coverage for drones. As per definition, drone is defined as an aircraft. The business personal property on the commercial insurance policy excludes aircraft from the coverage. This means that when using a drone, you have two exposures. One, the physical damage to the drone itself and two, the property damages or injuries caused by the drone.

Both the liability form under the homeowner’s policy and under the general policy exclude aircraft. To address the issue, companies today are using policy language in their renewal tools to accommodate drones in the coverage. Today, drones are sometimes included in coverage by endorsing it to their current policy or by writing a separate policy for the drone altogether.

They key to drone coverages is to speak about it to your agent and be advised on whether to include it in your policy or not. Doing this will give you a more informed educated decision regarding your insurance policies altogether.

Watch the video below to know more about drones and your insurance policies.