Insurance Tip regarding non-owned coverage

We get several calls asking to buy coverage for renting or borrowing an aircraft. The first thing we do is check to make sure you are not already covered under your current aircraft policy. Why pay for something you already have? In most cases, there is already coverage for the named insured on their current policy. Several companies will cover a non-owned aircraft as long as it is of like make and model of the currently insured aircraft. Before you purchase a separate policy, check your current one. It’s quite possible that your liability coverage extends to flying another aircraft while at the same time covering the aircraft itself. If the non-owned aircraft does not meet the policy’s qualifications, we can check to see if your current carrier will endorse your policy to allow rental. If not, we can always look into a non-owned policy for you.

Please remember that non-owned coverage is in excess to the policy on the aircraft itself. These non-owned policies or endorsements only pay out if you are legally liable for the damage to the aircraft.

If you are flying a friends aircraft, it is imperative that you check their policy to make sure you are either a named pilot or allowed to fly under the open pilot provisions. If you do not do this you could be voiding their policy.

Please note different outcomes can occur based on specific policy wording and claim details

LRingeisen said:

Several companies will cover a non-owned aircraft as long as it is of like make and model of the currently insured aircraft.

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This statement interests me.

I sometimes rent when I need more than 2 seats or need to carry more stuffs. That's obviously not going to be same make and model. Do I need a separate non-owned policy for that activity?

rolivi said:

This statement interests me.

I sometimes rent when I need more than 2 seats or need to carry more stuffs. That's obviously not going to be same make and model. Do I need a separate non-owned policy for that activity?

Click to expand...

This would depend on the wording of your policy. Since each company is different, it is best to look over your policy or have your broker help you determine if there is coverage or not. If coverage is not extended for a particular aircraft, you can get a separate non-owned policy.

As we have previously discussed, flying under the ‘open pilot’ clause protects the owner, but not you; unless the policy has a waiver of subrogation, the company may sue you to recover whatever they paid out.

THIS! ^ Super important for instructors giving initial or flight reviews