Non-Owned Aircraft Insurance

We receive numerous inquiries as to what non-owned aircraft insurance is, what it covers, and who needs it. We hope to answer some of the more frequently asked questions in this article. Understand, policy wording may vary from company to company and the following is informational only. Please contact your agent for specifics.

What is non-owned insurance?
Non-owned insurance (also called renters insurance) is designed to cover the named insured (individual or corporation) while operating an aircraft they are renting or borrowing, provided it is not owned or leased in whole or in part or furnished for their use in excess of 30 consecutive days.

What does non-owned insurance cover?
Non-owned insurance will cover any property damage and bodily injury to third parties that results from the negligence of the named insured while operating a non-owned aircraft. Non-owned insurance can also cover the physical damage to the non-owned aircraft being rented or borrowed. A non-owned policy will always have the liability coverage for bodily injury or property damage included. The liability for physical damage to the non-owned aircraft is a separate coverage that can be purchased and added to the policy.

Is there non-owned coverage for Certified Flight Instructors?
Yes, there is coverage available for CFI’s, but it is typically more expensive. ON some Non-owned policies, CFI’s may be able to endorse their current policy to cover their legal liability as a CFI.

What does non-owned insurance cost?
It depends on the company and the coverage you desire. You have options for various limits of liability coverage for physical damage and bodily injury as well as options for varying amounts of physical damage to the non-owned aircraft. See the non-owned application for premiums. (LINK TO THE NON-OWNED APP) The companies that offer non-owned insurance are dwindling. As of this week, there are only 2 companies in the entire market who offer non-owned insurance.

Will I pay more if I am a student pilot?
No, non-owned insurance premiums do not vary with pilot qualifications like your typical aircraft insurance does. An ATP pilot will get the same rate that a student pilot does.

What are the key points to remember about non-owned insurance?

Negligence must be proven before the non-owned policy will pay. You must be found liable in order for the non-owned coverage to pay.

Non-owned coverage is an excess policy. In other words, the non-owned coverage only applies when all other insurance available to you has first been exhausted by the payment of claims.

Non-owned insurance follows the pilot, not the aircraft.

Non-owned coverage may be limited in terms of the aircraft in which you are covered. For example, coverage may be limited to fixed wing, non-pressurized piston land aircraft having a maximum of 7 seats, 450 horsepower and a standard airworthiness certificate.