Did you receive a Drone for Christmas?

January 5, 2017
|In Education
|By McMahon Insurance

January 6, 2017

The demand for drones has surged this year and they were one of the most sought-after gifts. Drones are highly maneuverable,  but accidents do happen: Recently, a drone being used to record a wedding reception in New Hampshire injured two guests, who later sued the groom.

Generally, if you are using a drone for personal purposes and it injures someone or damages their property, your homeowner’s insurance policy would provide liability coverage up to the policy’s limits (If you are using a drone to make money — like photographing property for a real estate business — that would not typically be covered by a homeowner’s policy).

It is always wise to check with us on the specifics of your policy.  Some policies may exclude drone-related incidents. Here are some common questions we hear about drones:

What if my drone is lost or damaged?

Homeowner’s policies typically cover replacement of personal belongings, which would include a drone. But most policies have a deductible. So unless you have a very expensive drone, it may not be worth filing a claim.

Do I have to register my drone?

Federal rules now require recreational owners to register any drone. Drones weighing a half-pound to 55 pounds can be registered online; the fee is $5 per person, can be applied to as many drones as you own and is good for three years. Failure to register a drone can be costly: The FAA can impose fines of up to $27,500, and criminal penalties can be much higher.

What other insurance options are available?

One option for hobbyists: If you join the Academy of Model Aeronautics, you will receive group liability coverage as a benefit of membership. (Membership is $75 for adults, free for those under age 19.) The academy’s insurance policy, issued by a specialty insurer, typically pays out after your homeowner’s policy is exhausted, and it provides $2.5 million in liability coverage for property damage or bodily injury.

Give us a call to discuss!

 

Click here to read the full New York Times article