A rant on renter's insurance

Until I get my RV built, I'm probably just going to keep renting from the local FBO. It's been four years since I've flown, so I'm looking at renter's insurance again. Here comes the rant.

If you rent a plane and you have a renter's policy (some FBO's require it), you better get the optional hull damage coverage too. That's because the FBO's insurance company has the right to go after you to pay them back if you are at fault. It's called subrogation.

On the surface it sounds reasonable. You ought to take some financial responsibility if you are flying someone else's plane and end up wrecking it. So we get hull damage coverage with our renter's policy to cover the cost of repair/replacement for the planes we fly.

Now hang on a darn second. Doesn't a portion of my $150 wet rental rate go toward paying the FBO's insurance premiums, which are meant to make the FBO whole if a renter causes damage? Yes. So, dear renter, you are paying hull damage insurance premiums twice, once to the FBO's insurance and once to your renter's insurance. This for a payout that only one of those two insurance companies will have to pay for an occurrence. Sure does sound fair, doesn't it? (/sarcasm).

End rant.

Rental Insurance

Here is what I have encountered when renting a plane or helicopter years ago. Maybe after reading this you won't be so mad.

The FBO to keep their insurance rates affordable for them usually have hull coverage with a $10,000 deductible. If you crack up the plane you are responsible for the first $10,000 bucks. That is why you get rental plane insurance so you don't have to pay $10,000 bucks you only pay for the rental plane coverage. Last time I checked it was around 200$. When I rented a helicopter it was mandatory. No insurance, no can rent.

You won't know for sure until you go to the FBO and ask (demand) to see their insurance policy. Since this is a business policy, and everyone knows that renting aircraft are involved, you hope to see a "waiver of subrogation" clause for all renter pilots. Look and see if you are covered by the liability coverage. Your rental contract should clearly spell out who is responsible for any deductible, and what the amount is. Too many people are afraid of asking questions. If the FBO won't answer and/or show you the policy, go elsewhere.

Could be thread drift but while I was building my plane, I got into a 5-way partnership in a 1960s Citabria; three RV guts and another two who just wanted to fly on the cheap. It was a good way to stay flying without having to rent and helped keep those tailwheel skills sharp. Once I finished my plane, I sold the share to someone without any fuss. Perhaps there's someone around your airport with that going on, or maybe even start something up?

EDIT: Admittedly, that was "back in the day", I suppose insurance could also make that sort of thing more difficult nowadays.

DONT RENT!!

If the $$$ bother u, don’t rent any plane. Spend your time building and u will get it done quicker. I know several “builders” that bought other planes to fly during their build. Over 14 years later Those RV kits are still in an early stage of completion. Sitting in the back of their hangar.
I started my build because I didn’t like renting 60year old, questionable condition planes. So I quit flying for my 10 year build. Best thing I did. It’s called motivation. And NO insurance expense for someone else’s plane.