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State Farm Drone Insurance

Discussion in 'Insurance' started by Rich M, Mar 8, 2017.

  1. T3rdEye

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    State Farm in Indiana said they will cover sUAS but only for hobbyist. If your aircraft is FAA registered as commercial and you are Part 107 they will not do it. (This is not for liability but just to cover replacement of the Bird). Bummer!
     
  2. MattyIce79

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    Hello all and good morning

    Is anybody out there from Florida with drone insurance through State Farm? I'm just wondering if it's possible in the sunshine state?
     
  3. Up Sonder

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    Hey all! Does this insurance from State Farm cover using your drone for commercial purposes? Seems like you are only talking about personal use, or just covering the drone itself.
     
  4. Fester

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    No, State Farm covers only hobby/recreational use and covers only loss of the drone itself, which is under loss of personal items.
     
  5. MattyIce79

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    Right, I am a hobbyist, so loss only? What about crash?
     
  6. tcope

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    A PAF cover pretty much anything. It would be covered if crashed, stolen, lost (stolen), etc.
     
  7. TransplantTexan

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    Hey y'all, I work for a State Farm agent in MI and am a licensed insurance producer in this state. Just got my P3S delivered today and was checking out this site.

    The first thing I did after unboxing my Phantom was to add it to my own Personal Articles Policy (PAP). I am happy to answer any questions anyone has regarding State Farm's drone PAP. I will say up front that I am not aware of any differences in this coverage from state to state (other than this coverage is not available in California), but insurance regulations do vary from state to state and I am only licensed in Michigan.

    That being said, fire away. I am happy to help!
     
  8. MattyIce79

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    Hey bro, if my drone is crashed, does State Farm require you to send drone in for repairs or, will they file the claim for you to get a brand new one?
     
  9. TransplantTexan

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    In short, it depends. In the event of a crash you would call SF and file a claim. Included there would probably be photos of the damage. If it's something that is repairable, they may pay to have it repaired. If there is a drone repair business near you, you could get an estimate from them and possibly have it repaired there without sending it out. But if the damage is significant it is more likely they will just cut a check to replace it. This can also be somewhat influenced by you, the policyholder.

    For instance with auto claims, if you have a stone chip in your window the standard practice is to fill the chip. But if the policyholder is not comfortable with that solution claims can authorize a replacement windshield. Being kind to everyone involved in handling your claim will go a long way with this. Claims people spend all day getting yelled at, so a little kindness goes a long way.

    One thing to keep in mind is that these policies can be cancelled non-renewed when you have multiple claims. Usually at two they cancel non-renew the policy, which makes sense when you consider they might collect $60/yr in premium and one claim may easily total over 10 years of premium that they pay out. So utilize the claims wisely. I would probably only file a claim on my policy if the drone was completely lost or damaged very significantly.

    Hope that helps!
     
    #29 TransplantTexan, Apr 26, 2017 at 4:57 PM
    Last edited: Apr 27, 2017 at 4:41 PM
  10. MattyIce79

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    Yes, I agree. Somebody could open a drone business from State Farm claims sending the claim maker drones back to back for $75 a year. LOL!!! anyway, thank you for the information brother. I have contacted State Farm and they're going to get back with me. And yes, they do have drone insurance in Florida for hobbyist. Enjoy your P3S!!!!!!
     
  11. Jack Matthias

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    I use my drone for personal and commercial work. Can I get this policy just to cover the drone and their and not liability
     
  12. tcope

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    The Personal Article Floater _only_ covers the drone itself. It does not provide any liability coverage. As I understand it, it excludes commercial coverage.
     
  13. Jack Matthias

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    Yes that is what I am asking it will cover my drone not liability
     
  14. tcope

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    it won't (can't) be cancelled for claims. More correctly, it may not (and probably won't be) renewed for claims. Cancelling is more of termination coverage before the policy runs it's time frame.

    What should happen is once the carrier pays the limit on that certain item, they should no longer offer coverage on that item. This should happen at any time. Reason being is that the carrier offered $xxxx amount of insurance for $xxxx dollars. Once they pay $xxxx on that item, they have fulfilled their agreement. if there are other items on that same policy those would still have coverage but only up to the over-all limits of the policy. This is done because it's 100% fair/correct but also because there is no reason a carrier (as a business) would offer to keep paying on that item for that same premium. Better to charge another premium as the terms of that contract were completed.
     
  15. tcope

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    I mentioned this in my other post. Too add to that, they won't continue to keep paying on the item. They should only ever pay up to the limit on that item (and then drop coverage on that item) or up the policy limit (and _then_ cancel the policy). The contract is the contract. I can' take $10,000 worth of coverage, file two claims for $50 and SF cancel the policy because they want to keep some money in their pocket. Insurance does not work that way. They exposure is the limit, period.
     
  16. TransplantTexan

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    This is correct and my mistake for using incorrect nomenclature. It is non-renewal, not cancellation. Thank you for correcting me on that.

    Edit: I didn't use quotes correctly...
     
  17. TransplantTexan

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    Unfortunately no, if you use your drone for commercial work it is not eligible for coverage with State Farm's Personal Articles Policy.
     
  18. Jack Matthias

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    I don't need liability I just need my drone covered
     
  19. TransplantTexan

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    Right, and State Farm's PAP does not cover liability at all (commercial or otherwise). Aside from this, the fact that you use your drone commercially renders your drone ineligible for coverage under the terms of the Personal Articles Policy. SF will only cover your drone if it is used exclusively for hobby purposes, no commercial use.

    Edit: I know it sucks, but those are the underwriting guidelines.
     
  20. Jack Matthias

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    Why does it matter if I crash during a personal flight or for work.
     
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