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.
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.
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