Wednesday, December 16, 2015

Droning on

With Christmas just around the corner, 'drones' seems to be the hot item this year. I've seen some that fit in the palm of one's hand, and others the size of large dinner plates. regardless, they look like a lot of fun, but they also represent a potential insurance risk (or three):

Almost no one is thinking about insurance coverage when they’re opening the box,” says Jeff Antonelli, a Chicago attorney who specializes in federal regulations for unmanned aerial systems."

I reached out to Bill M (our favorite guru of all things P&C) for his take. He tells us that there seem to be two main issues:

First, if you (or your child) manages to crash that new drone into the neighbor's window or head, will your homeowner's insurance cover that damage? And second, since many of them also include video capability, there's the issue of invasion of privacy. Bill says that the property damage will likely be covered (although you may want to consider paying that out of pocket to avoid the potential hit to your rate at renewal time), but that it's unlikely they'll cover the invasion of privacy.

He suspects that the Courts will ultimately decide, and then the industry will correct forms to charge more or exclude coverage.

In the meantime, best keep a watchful eye out.
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