Question: I plan to buy a drone soon. Will my insurance cover any damages it might cause?
Answer: Damages caused by drones may be covered by the liability portion of your homeowners or renters’ insurance policy, but the details vary by insurer. “Some homeowners policies cover ‘model or hobby’ aircraft; others cover only model aircraft, and others exclude any aircraft,” says Bill Wilson, an insurance educator who runs the InsuranceCommentary.com blog.
Contact your insurance agent or company to find out whether your drone is covered and if there are any requirements or restrictions. You usually have to register your drone with the Federal Aviation Administration. (It costs $5 to register drones that weigh from 0.55 pounds to 55 pounds with the FAA for three years; see FAADroneZone.)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The policy may cover hobby use of the drone, but not commercial use by a business. For example, if you’re being paid to take pictures with the drone, ask your insurer whether you need to get special coverage.
If your drone damages your own car, it would be covered by the comprehensive coverage on your car insurance. And it may be covered by the liability coverage on your homeowners or renters’ insurance if it damages someone else’s car.
Your homeowners or renters’ insurance may pay to replace a stolen drone (after the deductible). Ask your insurer about the property coverage limits on your policy.
If your home insurance policy provides no-fault medical coverage, it may cover any injuries to others caused by the drone (but not injury to your own family members), according to the Insurance Information Institute.
The Insurance Information Institute recommends checking your insurance coverage for drones frequently because insurers continue to develop their coverage as drones become more popular and the technology evolves.
For more information about insurance coverage for drones, see the III’s Drones and Insurance guide. For more information about the safety and registration requirements for drones, see KnowBeforeYouFly.org.
The bottom line
Whether you need extra insurance for your drone depends largely on how you use it and the potential risks involved. Standard homeowner or renter policies might provide limited coverage. If you fly frequently, use a high-value drone or operate it commercially, specialized coverage could be a wise investment.
By weighing the costs of additional protection against the potential financial and legal risks of an accident, you can make a more informed decision that safeguards both your investment and peace of mind.
related content
-
Stock Market Today: Have We Seen the Bottom for Stocks?Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
-
Credit Report Error? They All Mattercredit & debt Don't dismiss a minor error. It could be the sign of something more serious.
-
Insurance for a Learning Driverinsurance Adding a teen driver to your plan will raise premiums, but there are things you can do to help reduce them.
-
529 Plans Aren’t Just for Kids529 Plans You don’t have to be college-age to use the money tax-free, but there are stipulations.
-
When to Transfer Ownership of a Custodial Accountsavings Before your child turns 18, you should check with your broker about the account's age of majority and termination.
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
-
When It Pays to Buy Travel Insurance
Travel Investing in travel insurance can help recover some costs when your vacation gets ruined by a natural disaster, medical emergency or other catastrophe.
-
What Travel Insurance Covers When Planes Are Grounded
Travel Your travel insurance might help with some costs if your trip was delayed because of the recent grounding of Boeing 737 Max planes.
-
Ways to Spend Your Flexible Spending Account Money by March 15 Deadline
spending Many workers will be hitting the drugstore in the next few days to use up leftover flexible spending account money from 2018 so they don’t lose it.
