Drone Insurance: Does Homeowners Insurance Cover Drones?

Drones are coveted devices for aviation enthusiasts, not to mention many social media influencers today. These high-tech toys were previously off-limits for anyone but the military or law enforcement, but recreational and hobby usage of drones has skyrocketed in recent years. However, drones can cause massive property destruction and injury from something as simple as a strong gust of wind. If you're not careful, you could end up with a hefty lawsuit on your hands.

Fortunately, homeowners insurance provides some coverage for drones. For additional protection, an independent insurance agent can help you get set up with the right drone insurance policy. They'll ensure you get all the coverage you need against possible property damage, injury, lawsuits, and more. But for starters, here's a breakdown of when and how homeowners insurance covers drone use and when you might need a separate drone insurance policy. 

Does Homeowners Insurance Cover Drones?

Yes, homeowners insurance and renters insurance policies typically provide some coverage for recreational drones. Most homeowners insurance policies will pay your claim if you or a member of your family harms someone else or their personal property with a drone. This type of incident falls under the liability coverage portion of homeowners insurance or a renters insurance policy for the following types of claims:

• Property damage: If you damage someone else’s property (e.g., a neighbor’s car) with your drone, your insurance policy will likely pay for the damage. 
• Bodily injury: If you injure someone else with your drone, your insurance policy will likely pay for their medical expenses. 

Homeowners insurance can also sometimes cover accidental physical damage to your drone. Your policy may include repair or replacement coverage up to your limits in the personal property category. However, you need to check your specific policy to be sure. Many home insurance policies specifically exclude coverage for aircraft, but radio-controlled model aircraft usually are covered. 

How your home or renters policy defines “aircraft” and whether that definition applies to your drone will determine whether you have liability coverage for drone-related incidents. Be sure to review your coverage with an independent insurance agent and find out for sure before you fly your drone.

What Parts of Drone Use Are Covered?

Homeowners insurance and renters insurance can cover recreational drone use in several ways, including against accidental damage, theft, and liability claims. Typically, these policies cover drones against the following issues and claims:

• Theft
• Fire
• Accidental damage
• Third-party bodily injury
• Third-party property damage

Common claims that arise from recreational drone use include crashing into objects or other people and resulting property damage or injuries. Fortunately, these claims are usually covered, at least to an extent, by home insurance and renters insurance. 

When Home Insurance Doesn't Cover Drones

There are a couple of types of drone usage that are never covered by home or renters insurance. These include:

• Invasive purposes: If you use your drone to spy on a neighbor or for otherwise invasive or upsetting purposes, your insurance will not cover lawsuits or other claims related to any incidents. Privacy and regulatory violations are not covered by home insurance or renters insurance. 
• Business purposes: If you operate a drone for business or commercial purposes, such as making a professional video you were hired for, your home or renters insurance likely won't pay for any related mishaps. You'd need to look into coverage provided by a special type of business insurance for that.
• International use: If you use your drone overseas, you may be outside of your home insurance or renters insurance coverage territory. You'll need to review your specific policy's terms to be certain of whether international use of your personal property is covered.
• Full replacement cost: If your drone's value exceeds the limit of your personal property coverage in your homeowners or renters insurance policy, you'll have to pay at least a portion of the full replacement cost out of your own pocket if it's stolen or destroyed. 

Keep in mind that personal property coverage is subject to your deductible and that your homeowners policy may include a dollar limit. If it is worth more than the policy’s basic dollar limit, talk with your independent insurance agent about purchasing additional personal property coverage for your drone.

When Do You Need Separate Drone Insurance?

If you plan to fly your drone often, or if you frequently fly in areas with a higher risk of causing personal injury or property damage, you may want to consider getting additional coverage in a separate policy. Otherwise, homeowners or renters insurance is probably sufficient for most recreational drone users. 

When to get separate drone insurance:

• If your drone's value exceeds the limit in your personal property coverage category.
• If the way you use your drone may result in a liability claim that surpasses your policy's liability coverage limit. 
• If you use your drone for business or commercial purposes.
• If you operate your drone internationally. 
• If you're worried about hurting yourself with your drone.

You can purchase a separate drone insurance policy that goes above and beyond what's included in your home or renters policy, including medical and accidental death coverage for your own injuries (not covered under home insurance), as well as additional liability coverage. This coverage would kick in after your existing limits have been exhausted. 

Also, if you fly a drone for business purposes, your homeowners or renters policy will not apply. Commercial drone operators need special commercial drone insurance.

What Does Drone Insurance Cover?

Separate drone insurance policies can cover physical damage to the drone and provide greater liability protection. These policies can come with the following types of coverage:

• Hull insurance: This covers physical damage to the drone itself from crashes, accidents, or malfunctions. Some policies also cover theft of your drone.
• Liability insurance: This covers third-party claims of personal property damage or bodily injury caused by your drone. 
• Payload insurance: This covers special equipment (e.g., LiDAR, cameras, mapping tools, and sensors) used with your drone against loss, damage, and theft.
• Cyber liability insurance: This covers costs associated with data breaches and other cyber incidents when storing or transferring client data on or from your drone.
• Non-owned drone insurance: This covers drones that you operate but do not own against damage, liability, etc.
• Ground equipment insurance: This covers any equipment used on the ground to control your drone, such as cameras, remote controls, and base stations. 
• Personal injury insurance: This covers third-party claims of personal or advertising injury that can include libel, slander, defamation, false advertising, wrongful eviction, and more. This coverage is essential for drone operators who do aerial photography or videography. 

An independent insurance agent can help you find a complete drone insurance policy. 

Homeowners Insurance vs. Drone Insurance

	Homeowners Insurance	Drone Insurance
Property Damage
Liability
Business Use
Personal Injury
International Use

Drone Use Can Lead to Lawsuits

If you think just crashing your drone is a problem, consider that invasion of privacy is also a serious concern for recreational drone users. Drones with onboard cameras or other data collection capabilities can inadvertently “spy” on others when taking pictures or video. Potential invasion-of-privacy lawsuits can be financially devastating without the right coverage, even if you had no intention of capturing footage of someone else. 

Many people are rightfully concerned about drones and privacy. If you or anyone in your family plans to fly a recreational drone, be aware of the privacy concerns and steer clear of any activities that could put you at risk for this kind of lawsuit. But regardless of your drone's intended purpose, ensure you have adequate liability coverage through either your home or renters insurance or a separate drone policy before flying.

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How Much Does Drone Insurance Cost?

The cost of drone insurance can range from $5-$15 per hour for hourly coverage, or from $500-$1,000 per year for a liability policy with $1 million in coverage. If you only use your drone occasionally or for low-risk activities, hourly coverage may be sufficient. However, if you use your drone more often or for commercial purposes, you may need a complete policy that offers more coverage than just liability. In such a case, your average rates would be higher than this estimate.

Drone insurance costs can be influenced by the following factors:

• Your location
• Your drone's make and model
• Your drone and equipment's total value
• The type and amount of coverage you choose
• The use of your drone (e.g., commercial or recreational)
• Your experience with piloting drones

A local independent insurance agent can help you find affordable drone insurance near you.

Drone Regulations and Safety Tips

It's critical to be aware of drone regulations before purchasing one. These extend beyond the type of insurance coverage you need. Here are a few drone regulations and safety tips to be aware of.

• Recreational drones that weigh more than 0.55 pounds must be registered with the FAA for a $5 fee. Keep your registration certificate with you at all times when operating your drone. Your registration must be renewed every three years.
• Don’t fly your recreational drone above 400 feet, and keep it within your line of sight at all times.
• Don’t fly within five miles of an airport unless you contact the airport and control tower first. Steer clear of other restricted areas (e.g., the White House, military installations).
• Let your neighbors know about your drone to avoid causing alarm.
• Avoid flying near people, crowds, or stadiums.
• Unmanned aircraft that weigh over 55 pounds require special registration and permission.

Be sure to read up on any local ordinances or laws regarding drone use in your area before you consider getting one for yourself.

How to Properly Insure Your Recreational Drone

Hobby drone insurance is new and evolving. While you may be able to get all the coverage you need with your home or renters insurance policy, don’t rely on assumptions. 

Your best bet is to get the advice of a knowledgeable independent insurance agent. A local agent can help you assess your existing coverage and, if necessary, can work with multiple insurance companies to find the right policy for your drone. 

An Independent Insurance Agent Can Help You Find the Right Drone Insurance

Independent insurance agents are experts in finding you the right kind of drone insurance, home insurance, and any other type of coverage you need. They can shop and compare policies from tons of different insurance companies for you, then present you with the best quotes in one place. Also, they're available down the road to help you file claims if you ever need to.

FAQs About Drone Insurance and Home Insurance Coverage