Rental insurance for new pilot

[SportPilot35]

Passed the Sport Pilot checkride last month and am looking to pick up a renters policy. In the rental agreement with the FBO, it states that I could be responsible for $3,500 as stated here:

1. 23. Renters are strongly encouraged to obtain renters insurance. If Renter does not, or cannot, obtain rental insurance they will be responsible to pay $3,500.00 for any damage including that caused to tires and landing gear due to excessive braking. Further, Renter may be held responsible for aircraft loss of use charges.

I was looking to pick up 500k/50 on liability and 10k for damage. Should I only get $5,000 for damage as it exceeds my responsibility (3500) to the FBO, or go for the 10k "just in case?" The difference in annual premium is only $72. I rent a Cessna 162 SkyCatcher.

Appreciate any help on this.

Todd

 

[Jaybird180]

Better to have it and not need it, than need it and not have it.

 

[TedR3]

Should I only get $5,000 for damage as it exceeds my responsibility (3500) to the FBO

Is there another clause that limits your liability to $3,500 if you carry insurance? The clause quoted in your post does not.

 

[TMetzinger]

The clause you quote is garbage that could be construed to mean you're only on the hook for $3500, or only on the hook for $3500 if the damage is to the assemblies listed.

Unless there's another clause stating that there is a waiver of subrogation in place, you may still be liable for the total cost of all damages, because the insurer will pay off the school/FBO and then come and sue you.

You should ask the school/FBO to tell you, in writing, your maximum exposure in the event you damage an airplane, including subrogation. Then get coverage (or self insure) for that amount of hull damage. You should probably get liability coverage (in case you harm a passenger or someone/something on the ground) regardless.

 

[JimNtexas]

In general aviation it can take months to fix an airplane. The wording you quote seems to imply that 'loss of use' charges are not subject to the $3500 limit.

It's pretty easy to imagine 'loss of use' charges exceeding the value of the airplane.

I wouldn't rent there, or if its your only alternative, have a lawyer read the contract and tell you what the owner can legally do to you if you sign that agreement.

And tape the lawyer's card on the back of your certificate.

 

[SportPilot35]

Thanks for the info guys. As I'm doing more research about this and see that dirty word subrogate everywhere, I'm realizing that minimal coverage of 5-10k of hull damage is insufficient in many situations as you've already mentioned. I'm now looking at least 40k of damage protection, and most likely 60k. It's also been suggested that I check out a possible umbrella policy under my homeowners policy to add additional coverage.

Appreciate the info!

Todd