I am looking to get a non-owned policy. I've looked at AVEMCO, AIG, and STARR. All three say that the coverage is excess, and both AIG and STARR only cover up to the property damage coverage or 5k, whichever is less for the deductible on other policies. If the flying club has a policy, and the deductible is over 5k, would it even make sense to have a non-owned policy? Seems like it wouldn't cover anything.
I talked to one broker and they said it would, but reading the actual policy language makes me think otherwise. Any experience would be appreciated.
I haven't looked at any of those policies in a while and things change, so take this only as a general explanation.
If I recall correctly, the "excess insurance clause" is like most - if there is other insurance available to
you, it goes first. That's generally a reference to insurance you purchased or on which you are an insured with respect the claim. Simple example: the typical umbrella policy is excess insurance. If you cause a car accident, your umbrella isn't involved unless the damages exceed the liability limits of your regular auto policy. The FBO policy? It is insurance available
to the FBO. It is not insurance available to
you.
Again, I haven't looked at the specific policies you are looking at (and I wouldn't give you a legal opinion on it even if I did), but deductible coverage is generally
no-fault deductible coverage. Remember that insurance generally covers liability - you have to be at fault. Same for non-owned policies. If you damage the airplane you are liable and your non-owner policy pays. If you are not liable for the damage, the insurance doesn't.
Many rental FBOs have rental contracts which say that, in case of damage, the pilot who had possession of the airplane is responsible for the deductible, regardless of fault. You fly for a $100 hamburger and wen yo come back to the plane, there's a huge dent in the wing. It's not your fault but it is your problem, at least for the deductible. So a number of policies have added "no fault deductible coverage." Nice, but they are going to limit it.
From what you describe, it sounds like, if you were not at fault, it would cover you for the $5K deductible on the club policy (it's insurance available to the FBO, not to you). If the FBO policy had a $10,000 deductible and it wasn't your fault, your policy would only cover $5K of the $10K. OTOH if the damage were your fault, the overall non-owed policy limits kick in.
You need to have someone who knows how to read a policy read the for you. Be wary of what brokers may tell you. I had a guy who had an accident with a non-owned airplane and was told by three different people working for the brokers it wasn't covered. All three were wrong.