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Liability Insurance for Hangar Lease?

rockitdoc

Well Known Member
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I am next in line to get a hangar at our local airport (KFNL). They won't lease it to me without liability insurance. OK. So, I went to my agent and gave her the example policy the City will accept (excerpt attached). After 5 weeks she came back with a quote: $850/yr

This is not hull insurance, mind you. Just liability for the hangar.

Questions: 1) Is this what I should have expected?

2) Anybody else experience this?

3) Anybody have a recommendation for an underwriter that might be significantly more reasonable?

Any suggestions appreciated. BTW, did I mention that hangar space around these parts is hard to come by.
 

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I only have liability insurance on my airplane, the only thing that was required when I rented a hangar is adding the county to my insurance policy. They didn't charge me anymore for that.
 
I only have liability insurance on my airplane, the only thing that was required when I rented a hangar is adding the county to my insurance policy. They didn't charge me anymore for that.

Parking my plane in MI might present a small inconvenience, but I will keep it in mind in case I can't find a reasonable policy rate here in CO.:D
 
Like David mentioned, don’t you already have liability insurance on your aircraft? If so, it may be a simple of just adding them to your policy. That is pretty typical and usually it doesn’t cost anything extra.
 
What Rob said..if you can.

We had do the same thing at our airport recently. Its seems to be the norm these days. I only carry liability (non-flight) on my RV-4, and adding all the requested verbiage to fulfill the airport request was a quick change from the underwriter. I'm not sure what your airport is looking for as far as coverage, but mine is less than $300/year. They want to think they are covered in the event your pride burns up and takes out the row...or, I had a guy start his Comanche and power-up across from me, loose control and wack my door support post in 2..after the Comanche was retrieved from the woods and the phone pole it also hit, he took the total loss and the plane was scrapped. He also threw in the towel for flying. If he were angled 20 degrees left, I would not have my RV-4 anymore... It is the normal process for new hangars here, and if your policy lapses, one reminder then eviction.
 
$850/year seems in line with my original quote for $1M/$2M liability/structure.

In my case I needed $1.5M/$2M for commercial purpose to satisfy the state...That added an additional $1000 to the premium :eek:
 
I only have liability insurance on my airplane, the only thing that was required when I rented a hangar is adding the county to my insurance policy. They didn't charge me anymore for that.

I didn't even have to do that. I only had to provide proof to the airport that I had liability insurance.
 
Liability Insurance

If you have home owners insurance, contact the carrier and see if you can add the hangar coverage to your home owners policy. That is what I was able to do and it was MUCH less expensive than the other quotes that I got.
My agent first told me that it was not possible for me to add the hangar to the home owners policy but said that she would check to make sure.
She came back very apologetic and said that hangars were listed as structures that could be covered. Price was very reasonable.

Best regards,
Chuck
 
$503 for $1M in liability coverage. Falcon Insurance in Houston. Took a bit of doing because I don't have a plane yet, just the tail feathers built so far and I'm building it off airport. Hangar space is in short supply so I got on a list last year thinking I would be farther along in my build and it would take a while to work my way to the top. In January I was surprised to get a notice that my turn was up and so I started looking for insurance. The companies were really unsure about the fact that I didn't actually have an airplane. And based on the shipping delays from Vans doesn't look like I will have one for a while.

Figured I'd go ahead and get the hangar anyway while it was available as they seem to be hard to come by. March 1st was supposed to be the date it was going to be available then they moved it to April 1st and then last week the airport contact notified me the current occupant has decided to stay! I had to ask the insurance folks to delay the effective date which they have agreed to do.

So I'm back on the waiting list....
 
Hangar Coverage

If you have home owners insurance, contact the carrier and see if you can add the hangar coverage to your home owners policy. That is what I was able to do and it was MUCH less expensive than the other quotes that I got.
My agent first told me that it was not possible for me to add the hangar to the home owners policy but said that she would check to make sure.
She came back very apologetic and said that hangars were listed as structures that could be covered. Price was very reasonable.

Best regards,
Chuck


Same here. My homeowner's agent indicated I was covered--no change in premium. My airplane is in an LLC (single member). She did tell me that I needed to rent the hangar in my name, not that of the LLC, for the coverage to apply.
 
Like David mentioned, don’t you already have liability insurance on your aircraft? If so, it may be a simple of just adding them to your policy. That is pretty typical and usually it doesn’t cost anything extra.

I don't have a plane, yet. Under construction in my shop. But, it would be nice to get the hangar in advance of needing one.
 
If you have home owners insurance, contact the carrier and see if you can add the hangar coverage to your home owners policy. That is what I was able to do and it was MUCH less expensive than the other quotes that I got.
My agent first told me that it was not possible for me to add the hangar to the home owners policy but said that she would check to make sure.
She came back very apologetic and said that hangars were listed as structures that could be covered. Price was very reasonable.

Best regards,
Chuck

Excellent idea.
 
I didn't know that I might be able to get hangar coverage on my homeowner's insurance. I have it on a stand-alone policy, and it includes something for project coverage, too. It's more than just liability since I own the hangar. I think I'm paying something around $850 a year for it.

Dave
 
Went back to my agent to get clarification on the policy. They were insuring the building $450/yr against loss and liability $250/yr and incidentals $100. So, it looks like the liability alone will be about $350/yr. They wouldn't just add it to my homeowner's. May be time to shop other carriers.
 
My hangar is listed on my USAA homeowner's policy as an external building...mind you it's very external, as in "at the airport". But that's what they did. I did need to provide them a physical property description, but that was it. No change in premium.

Not to be confused, I do have a separate builder's risk policy for my -10 under construction, as my homeowner's explicitly excludes aircraft and aircraft parts. The Builder's Risk does not directly cover the hangar, only the project (materials, parts, avionics, etc..) and liability related to construction.
 
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My airport also requires hangar owners to carry insurance. I went through Falcon Insurance, who also brokers my -9A. My policy cost $549 this year for $1M liability and full replacement cost. My hangar is 3000 sq ft and the full replacement cost is about $25K higher than the current County property tax market value.
 
I don't have a plane, yet. Under construction in my shop. But, it would be nice to get the hangar in advance of needing one.

You just need to talk to your broker about getting non-movement coverage. I was able to get liability as well as hull coverage during my build. I just raised the hull coverage amount every year as I progressed during the build. When I was ready for the first flight, it just took a quick phone call to convert to full motion coverage.
 
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