Have a question about Avemco's Renters & Borrowers aircraft insurance? Browse through our list of frequently asked questions below. If you still can't find the answer you're looking for, contact us at (888) 241 7891 (M-F 9:00 am to 6:00 pm Eastern). One of our aviation underwriters will be glad to assist you.
- What is non-owned liability coverage?
- What is subrogation?
- What about the rental agreement I signed? I thought I only had to pay the deductible?
- Will a non-owned policy provide coverage for a borrowed aircraft that doesn't have insurance?
- What type of aircraft am I permitted to use if I purchase a non-owned liability policy?
- What qualifies as non-owned aircraft?
- Are there any limitations on how I can use a non-owned aircraft?
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Q: What is non-owned liability coverage?
A: It is a liability insurance policy that protects you as a non-owned pilot against claims arising from bodily injury or damage you may have caused to others or to their property when using a non-owned aircraft. Your insurance company's commitment is to defend you if you are sued, and if you are at fault, to pay for the damages according to the terms of the policy. This coverage is not medical or life insurance, but rather, liability coverage for claims made against you by third parties due to your negligence. This includes damage to the non-owned aircraft you are operating if you purchase optional Aircraft Damage Liability coverage.
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Q: What is subrogation?
A: It is the right of an insurance company to recover from a legally responsible third party, such as a non-owned pilot, for the payment of a covered claim to its policyholder, such as a flight school. This right to "subrogate" is found in almost every insurance policy and upon payment of a claim entitles the insurance company to all of the policyholder's legal rights of action against responsible third parties for the loss paid. It is common practice for insurers of flight schools to "subrogate" against renter pilots to recover their payment for damage over the deductible.
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Q: What about the rental agreement I signed? I thought I only had to pay the deductible?
A: Yes, you probably will be responsible for the deductible. If you purchased Aircraft Damage Liability coverage from Avemco, the policy will pay up to $1,000 of the owner's deductible regardless of fault. However, it is not the only thing you may be responsible for. Some owner/FBO's hold their renters responsible for loss of income during the time the aircraft is down for repairs and diminished value of the aircraft due to its damage history. In addition, if the owner/FBO's insurance company pays for the damage above your deductible they can subrogate against you for the cost of the damages they paid. You should review your particular rental agreement and purchase Aircraft Damage Liability coverage with limits sufficient or your circumstances.
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Q: Will a non-owned policy provide coverage for a borrowed aircraft that doesn't have insurance?
A: Our non-owned aircraft policy will provide you with liability coverage while using someone else's aircraft. If, however, there were an accident or loss not caused by your negligence (such as mechanical failure, hail, struck by another aircraft, etc.), we would defend you against any claims by the owner on the basis that you were not liable. Your non-owned coverage is not a substitute for the aircraft owner buying their own coverage to protect their interests.
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Q: What type of aircraft am I permitted to use if I purchase a non-owned liability policy?
A: The standard Avemco policy covers non-owned aircraft that have a standard airworthiness certificate, or are certified in the Special Light Sport Category, single engine with no more than 450 horsepower, United States registration, fixed wings, no more than 7 seats, and not having a turbine engine. Optional coverage is available at an additional charge to cover multi-engine aircraft. Be aware, the maximum engine horsepower and aircraft's seating capacity vary significantly among insurance companies.
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Q: What qualifies as a non-owned aircraft?
A: A non-owned aircraft is an aircraft you rent or borrow. Its use must be with the owner's permission. It cannot be owned in whole or in part by you or your spouse, or the parents, children, brothers, or sister of you or your spouse, or a corporation, partnership, or other organization in which any combination of the people listed above own more than 20%. It also cannot be furnished for more than 30 consecutive days to any of the people or entities listed above.
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Q: Are there any limitations on how I can use a non-owned aircraft?
A: You can use a non-owned aircraft for your own pleasure and business for which no charge is made. You may not use a non-owned aircraft for a commercial, special, or unlawful purpose as defined in Avemco's Non-Owned Aircraft Insurance Policy. Coverage for flight instruction can be added by endorsement for an additional premium.
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