Insurance is one of those things people typically buy because they need coverage, the lender requires insurance or they are looking for added peace of mind. However, insurance, especially aviation insurance can be a lot more complex with many different coverages and stipulations that most aircraft owners don’t fully understand.
Here is a breakdown of what you need to know about your aircraft insurance. This can help you better understand your policy, quickly determine what coverage you do and do not have, and better evaluate any changes you might want to discuss with your insurer come renewal time.
Understanding the Parts of Your Aircraft Insurance Policy
Your aircraft insurance policy outlines and defines the terms and requirements of the agreement between you and your insurance company and the coverage provided. It is essential to understand what has been agreed upon in your policy. If you fail to comply with anything outlined in your policy and need to file a claim, your insurance provider might not cover your claim. Here is an explanation of each part of an aircraft insurance policy.
As you read through your policy and have questions regarding some of the terminology, your insurance documents include a Policy Definitions section that can help. Keep in mind that the insurer has precise definitions for standard terms. Make sure you understand how your insurer defines terms such as “Accident,” “Passenger,” “In Flight,” “In Motion,” et al.
The aircraft insurance Declaration Page is similar to the Declaration Page of your homeowners’ insurance policy. This part of the document is a statement of your policy’s coverages. You may find any of the following information on the Declaration Page, depending on the coverage you carry on your aircraft:
- Policyholder information
- The policy number
- The start and end dates of the policy
- Policy liability limits
- Your aircraft information
- The aircraft hull value (for policies with physical damage coverage)
- Applicable deductible amount
- Physical damage coverage, if applicable
When you get a new or renew your current policy, look at the declaration page to confirm that your personal and aircraft information and coverage limits are correct.
If you need to determine the circumstances your insurer will pay on a claim, refer to the Insuring Agreement section. This section outlines the limits on liability, physical damage and medical expenses the insurer will pay in exchange for your premiums. It also describes any defense you will receive on behalf of your insurer if you become liable for injury to a person or property involving your aircraft.
Just as your aircraft policy describes what is covered, it also contains exclusions – the circumstances in which your insurer will not provide you with coverage. The policy will usually list both general and specific exclusions. Knowing what you are not covered for is as important as knowing what you are.
Just as the Insuring Agreement summarizes your insurer’s obligations to you, the Condition section outlines your obligations – the requirements you must meet to receive for the insurer to cover you. If you need to file and document a claim, you can determine what you need to do by referring to the Conditions section of your policy.
You’ll find any applicable endorsements toward the end of your policy. This section describes any changes or amendments that have been made to the original policy written. Pay attention to the Endorsements section since these changes can add or remove coverage as stated elsewhere in your policy. If you’ve added additional coverage to your policy, you’ll find it here.
Find A Broker You Can Trust
The single most important decision to make when obtaining an aircraft insurance policy is finding an aviation insurance broker you can trust, who specializes in aircraft insurance. Your broker is the link between helping to explain and understand the difference coverages in your policy, as well as shopping the market and ensuring you have the most competitive rate with the best coverages.
Why choose BWI Aviation Insurance?
Over our 42 year history, BWI has built longstanding relationships with all of the above Aviation Insurance Companies. We work hand in hand with the above companies and leverage our experience to find the best market for your particular airplane insurance risk.
To ensure that you are getting the absolute lowest rate and best coverage with a rock solid A+ rated Aviation Insurance company, get a quote with BWI today. We specialize only in Airplane Insurance and our office is open 12 hours a day. Our agents are friendly and knowledgeable, and most importantly they are agents that you can trust to get you the best coverage for your needs. Aviation Insurance is all that we do and have done for 42 years.
Call 800.666.4359 today for a free Airplane Insurance Quote or Click Here to submit a quote request online.
BWI is the Nation’s Leader in Aviation Insurance, with offices based in Corona, CA and Anchorage, AK.