Mandatory Liability Insurance?

[Geico266]

The municipal airport I hangar at now requires a $1 million dollar insurance policy naming the airport authority as named insured. The entire building costs $700K why would you need to insure a $700K building for $9,000,000? This may make sense to someone, but it makes no sense to me.

In talking with my insurance guy he says this started in Kalifornia and is spreading across the country;"Because they can."

If you have insurance the rider is little to no cost, but if you do not have insurance the cost is $350 / year for a 2 seater and $550 / year for a 4 seater. While this is not a deal killer for most owners, it certainly can be for some.

What does your airport authority require for insurance if any?

[Ironflight]

At our Airpark, we are required to have liability insurance, but the Airpark does not have to be named on the policy.

Paul

[ccsmith51]

My hangar lease requires that I carry liability insurance, and that the City of Palatka be named as an additional insured. I was told by an insurance agent that this is very common for municipally owned airports...

[Peterk]

but it makes no sense to me.

...we don't have that deal here at Pecan but then a hanger fire caused by an individual would unlikely spread "next door" (though it might in these winds!). My hanger insurance is included in my homewoners as an "outbuilding." I would have to assume municipalities are concerned about a spreading fire and all of the lawsuits that would ensue. Maybe I'm way off base...certainly there is a city/county employee in this group or even an AVEMCO type.

All the more reason to avoid government run business'. You're better off finding a place where someone leases all of that business from the city.

Pete

[Louise Hose]

We do have to have the insurance for our hangar in Big Bear, CA. (Easy for him to forget since he doesn't deal with the paperwork at that airport.)

[plehrke]

Since we own our hanger and lease the ground from the airport owner, we need no issurance as the ground should be there no matter what happens.
Of coarse we have insurance for our hanger and contents.

[fehdxl]

Is liability insurance to only cover the building, or the building and the other aircraft in adjoined hangars?

Maybe that's why they want $1M...to cover a $700K building and 9 other planes @ $100K each. Just a thought.

-Jim

[rwhittier]

We also own the building (a condo association with 26 hangars) and lease the ground from the city. The lease with the city requires insurance but the hangar association carries the insurance and then charges each tenant for their share. total insurance (Liability plus coverage for the building costs about $200 per hangar.

FWIW, our condo neighbors 1 building north had a fire (motorhome caught fire inside the building). They were thankful to have the insurance. Stuff does happen...

Originally Posted by plehrke

Since we own our hanger and lease the ground from the airport owner, we need no issurance as the ground should be there no matter what happens.

[az_gila]

Originally Posted by ccsmith51

My hangar lease requires that I carry liability insurance, and that the City of Palatka be named as an additional insured. I was told by an insurance agent that this is very common for municipally owned airports...

Are we mixing up an insurance policy on the hangar, and one on the aircraft?

Our Airpark requires a $1M liability insurance on your aircraft.

But if you own/lease a hangar and have other aircraft in it you might want to check your and their insurance policies.

The hangar fire we had 15 months ago lost 2 Glasairs and a Comp10 with only one being insured. I am told the possibility of lawsuits has not yet settled...

If the fire starts in one plane - apparently the case here - that plane owner could be held liable for the entire damage - especially if the structure is under-insured as a private hangar which is quite common when it is a % of your home insured value.

[Bavafa]

Originally Posted by plehrke

Since we own our hanger and lease the ground from the airport owner, we need no issurance as the ground should be there no matter what happens.

This is the exact situation for me

I am required to have hanger insurance but I am the named insured.