Recently we asked insurance firms to tell us about liability insurance terms and fees for residential airparks. We received responses from Jon R. Shimer, Jr. of Aviation Insurance Resources and Norma Joyce of AUA. The information they provided is below together with the contact information.
Jon R Shimer writes:
The average AGL (Airport General Liability) policy we see starts at $1 million combined single limit, and more can usually be written. Each policy is tailored individually for each Homeowner/Airport/Airpark so I can’t be specific on rates. However there has been some modest decreases in premiums as competition is growing for this class of business.
The Homeowner’s coverages are generally written by a local agent for the home and we would write the “Aviation” side of the exposures as most homeowner policies exclude all things related to “Aviation”.
However, we can usually write the individual hangar with an apartment built inside. Our coverage typically written is for the Premises, Hangar and Contents, and any Aircraft. I don’t write homeowners’ policies but here again rates are different for each location. Florida will be a lot tougher and expensive to write than say a home in Iowa due to hurricane and flood exposures.
We would welcome the opportunity to quote aviation insurance needs of your Living With Your Plane subscribers. Thank you for giving Aviation Insurance Resources (AIR) an opportunity to respond to your questions.
Norma Joyce explains:
I can’t answer all of your questions, but I can tell you that Airparks are difficult to find companies that will write Premises Liability for this risk. If you have an Airpark, the underwriter will want to know details regarding the runway, the security at the airpark (for example, is it fenced), the length and width of the runway, and how many residents – homes are there. They also want to know if the roads are taxiways and what activities are conducted at the Airpark. The policies normally will exclude all commercial uses and contests. The actual policy will only cover the runway, taxiways and ramp area, they compare the policy to a regular airport Premises Policy. They do not cover the houses, individual hangars, or roads in between.
Most of the small Airparks buy $1,000,000 Premises. If the Association supplies the residents with gas and oil they should carry Product Liability coverage. The Owner of the Airpark is usually the named insured and the Association is usually an Additional Insured.
The last quote I received on a large Airpark was $10,000,000 Premises for $5,700. The premium for most $1,000,000 Premises policies for would be $1,600 – 2,000.
Norma Joyce, AUA, POBox 35289, Greensboro, NC 27425 Phone: 800-727-3823. Website: www.auaonline.com