Thread: My instructror wants me to get renters insurance, do I need

Hey Guys,

My instructor wants me (sounded mandadory) to buy renters insurance from AOPA. Am I not covered while flying solo in his plane? I know he has instruction insurance... I would think at 109.00 per hour, that would include insurance. My buddy is renting a PA140 from a different airport/instructor and wasn't asked to get it.

Then I'm also confused about which type of insurance. There is the " bodily liability" choice which doesn't cover any damage to the rented aircraft, so that's usless to the plane owner. The second type is "liability to non owned aircraft" and that ranges from $94 for $5000 of coverage all the way to $1825 for $200,000 coverage. It doesn't appear I can purchase the latter coverage without at least getting the minimum "bodily liability" which is $81 for $250,000/$25,000.

I guess my main question is if I had a mishap and wrecked the plane or maybe did $1000 of damage backing into something in the hanger by mistake, what would be my fiscal responsiblity? Can someone explain this to me please?

Thx,
James

Some posts on the subject over here:
http://www.sportpilottalk.com/viewforum ... 5d07e11091

I think most of the people on this forum own their planes and that's why you're not getting any responses.

Toward the end of my Sport Certificate training, the owner of the plane required renter's insurance. Seems like it came into play more after I flew solo and was going to be flying by myself.

I'm no expert, but you should ask to see a copy of the FBO's policy. Usually, they cover their plane for hull damage but there is a deductible, maybe huge, that you could be liable for. Also, their insurance company can come after you if the damage is your fault. Renters' insurance from AOPA might be a good idea. You can get legal help from them as part of the deal. - WF

I would think that there are better deals than AOPA out there for rental insurance. I got a good deal through the EAA with my insurance, so I would shop around.

You need to be very clear on what your FBO covers and what they don't. In general, I consider renters insurance worth it given the low cost. Some policies will have a "gap coverage" of $5k to $10k regardless of who is at fault. So, for example, if you are involved in an incident, it's not your fault since you're not PIC, but the school comes after you, the insurance will cover up to $10k. Most schools are insured but have very large deductables; this makes for happy endings for everyone.

Doug

Thanks for all the advise! My FBO cover the hull to 5,000 so I only needed to get the 175.00 gap insurance, whew...

Thx!

One thing I learned during my flight training is that "renters" insurance is a MUSt if for nothing else your own financial safety. Most flight schools have a $5000 deductible. If you wreck it...you can almost bet they'll be after you for that. During my searches...now this was back in 1997...Avemco was the least expensive for a plan like that.

In this day and age of sue everyone for everything, I cannot imagine anyone not wanting to have this coverage. What if you run into someone or something on the ramp while taxiing? Pushing the airplane backwards into the hangar and hitting another airplane?

Slamming a door and breaking a window? $ 2,700 repair plus 10 days down time at $ 1,500 per day.

Hitting, or being hit, by a bird in flight? $ 7,500 in a C172 and down for a month.

It does not take a major accident, and a totaled airplane, to justify why you need this.

Our rental agreement that our students and renters sign states they will pay for any claims up to $ 5,000 -- even if our insurance deductible for the school is less. In other words, we don't turn all small claims in to the insurance company.

The rental agreement also states the renter (that would be you, Mr. Student Pilot or Mr. Licensed Pilot) that for each down day during a repair you are responsible for 5 hours of lost rental revenue. We learned this one from the insurance companies, so we added it to our policies when they balked at paying a small claim and jerked our chain.

Renters insurance will pay what you have signed on for as the renter, in other words, repairs plus damages. Lost rental is a big one if an airplane sits in the shop while the mechanic takes two weeks off to go deer hunting in the fall.

Renters insurance is the cheapest policy you will buy if you ever need it. If not, it was only the cost of one flight lesson in a year.

When I go around the State making presentations for the FAASTeam I make a point of encouraging all pilots, and all flight schools, to require their members to purchase this.

The best reason I can think of to purchase renters insurance; your instructor told you to do it. Instructors need to know their students will do what they are told. On the ground, in the air, or when out of sight. When a student, or renter, challenges this little issue with me I seriously wonder what he will do when he is out of my sight in my $ 140,000 airplane going 120 knots with his child sitting next to him.

Scott Johnson
Chief Instructor
LSA North, Stick-n-Rudder Flight Training