Answers to Some Aviation Insurance Questions

Uploaded 8/5/26 by Chris Travers

1. What Are Some Additional Aircraft Insurance Coverages Owners May Consider Beyond a Standard Policy?

There are many coverages aircraft owners may find worth considering in addition to a standard insurance policy. Some of these coverages and endorsements address things like specific risks, operating environments, and ownership circumstances. Some coverages owners may consider are:

Higher Liability Limits
Policyholders often find Higher Liability coverage important. While many policies offer liability protection, higher liability coverage may be available. High liability coverage can be especially valuable when carrying passengers or working in an environment where property damage may arise.

Renters Insurance, Non-Owned Aircraft Insurance, CFI Insurance
If you occasionally rent, borrow, or instruct in aircraft you do not own, non-owned aircraft insurance or CFI insurance may be available. This type of coverage can help in the event of a claim arising from operating a rented or borrowed aircraft. All policies are different. It is important to review your actual policy to make sure coverage would apply to your situation.

Renter & Non-Owned Aircraft Insurance - Travers

Extended Policy Territory
Aircraft operated outside of the policy territory will need special coverage extending the policy territory to other regions.

2. How Much Liability Insurance Should I Carry?

Choosing the correct amount of liability insurance is an important decision that relies on a variety of factors. Aircraft owners should consider purchasing as much liability insurance as possible. The appropriate liability limit for each individual depends on circumstances such as the aircraft use, passenger capacity, pilot experience, personal assets, coverage availability, cost, overall risk exposure, and more.

3. Are “Smooth” Liability Limits Worth It?

Many policyholders consider policies with smooth liability limits to help mitigate risk.

An important decision aircraft owners make is whether or not to purchase a smooth liability limit. While many policies apply sub-limits like a $100,000 sub-limit per passenger–smooth liability limits often provide a combined single liability limit with no per passenger sub-limits. All insurance policies are different. Some insurance policies may word liability coverage differently than others. It is important to review your individual policy and understand your exact limits.

4. Do I Need Additional Coverage for my Hangar, Tools, Equipment, and Other Property?

A standard aircraft insurance policy is typically designed to prioritize the protection of the aircraft and not additional assets, like hangars, tools, equipment, and other property. Understanding what is–and is not–covered by a standard aircraft insurance policy is important for policyholders to know to identify potential gaps in their coverage.

Many aircraft owners assume because their aircraft is insured, they don’t need to worry about covering additional property, like hangars, spare parts, tools, and other assets. Coverage for property beyond the aircraft is addressed separately and requires additional coverage.

Aircraft owners who own valuable property like spare engines, replacement parts, maintenance tools, or other assets may want to review their aircraft policy to determine if their property is or is not covered. Coverage for these items can depend on the type of property, where it is stored, and the current policy in place. In many cases a separate policy can be purchased to help cover these assets.

Aircraft owners who store aviation related property, (like tools, spare parts, or equipment), may need hangar contents coverage. Standard airplane policies may not provide coverage for additional aviation-related property beyond the aircraft. Depending on the property and policy an individual possesses. Hangar contents coverage may be a useful addition.

A mistake many aircraft owners make is assuming their standard policy fully protects all their property. Depending on the individual circumstances of one’s policy and property, additional coverage may be the best option.

5. What Are Some Insurance Considerations When Flying Internationally?

Some airplane insurance policies may offer coverage for flights in the USA, Canada and Mexico. Other policies may require specific endorsements to cover specific territories. Policy territory will differ depending on the insurance carrier and the specific policy. In many cases, a Mexican Liability Certificate will be required when flying in Mexico. “Worldwide” coverage may be available for little or no extra cost depending on the underwritten risk and insurance company.

In some cases, insurance companies can offer temporary endorsements or policy changes that cover limited international travel for aircraft owners.

It is important to read your exact policy territory and understand your territory and any exclusions. Some common territory exclusions include Cuba, Haiti, or territories with civil unrest. Many policies have geographic exclusions or restrictions. These are parts of the world where coverage may be limited or not apply. These exclusions are often in response to political, regulatory, or underwriting considerations.

It is important to carefully review your policy to determine your actual policy territory.

6. Should Certified Flight Instructors (CFI’s) Consider Non-Owned CFI Aircraft Insurance?

Many instructors carry non-owned CFI aircraft insurance. Non-owned CFI aircraft liability insurance can provide an added layer of protection for those flying in an aircraft owned by a third party. It is important to read your actual insurance policy to make sure coverage is appropriate.

CFI Non Owned Aircraft Insurance | Travers

7. What Are Some Insurance Coverages Flight School Operators Should Consider?

Specialized operations–like flights school operators require their own special insurance considerations beyond those of a standard policy. Flight school operators should consider some of the following coverages.

- Fleet Insurance
- CFI insurance
- Non-owned aircraft insurance
- Aircraft renter insurance
- Instruction and Rental insurance
- Negligent Instruction insurance
- Hull Insurance
- Liability Insurance

While a standard personal policy may provide an aircraft owner with coverage, flight school operators should always review their policy to make sure coverage is appropriate.

8. Are Avionics Upgrades Covered in my Airplane Insurance Policy?

Upgrades to avionics systems should be reported to the insurer so the value of the aircraft can be accounted for in the current policy. In many cases this extra value and equipment can be endorsed to your current policy. It is important for the policyholder to increase the hull value of the aircraft and make sure avionics are covered properly.

9. Is Portable Aviation Equipment Covered in my Airplane Insurance Policy?

Portable aviation equipment may include handheld GPS, headsets, tablets, electronic flight bag (EFB) tablets, portable radios, and other portable devices. Many standard insurance policies require specific, extra protection to cover portable equipment. Coverage differs from policy to policy as wording is different in every policy. Because each aircraft policy varies, it is crucial for policyholders to review their individual policy.

10. What is the difference between an aviation insurance broker like Travers Aviation Insurance and a direct writer like AVEMCO?

The difference between an aviation insurance broker and a direct writer is in the way they sell insurance policies. A broker, like Travers Aviation Insurance, may independently compare dozens of insurance carriers, their pricing, and their policies to find the best option. A direct writer, on the other hand, typically sells for the insurance carrier that employs them, and unlike a broker, are generally limited to their company's product. When it comes to choosing the best policy, brokers have the advantage of comparing offerings from a multitude of carriers.

Difference between Avemco and Travers Aviation Insurance

11. What are the best aviation insurance companies?

The best aviation insurance companies depend on an aircraft owner’s specific needs. Some of the many insurance companies that tend to rank highly are AIG and Old Republic Aerospace. Because Travers Aviation Insurance is an insurance broker, we can compare coverage options among many different insurance companies to assist finding the best option for our clients. While the “best” insurance company for your needs may differ on a case-by-case basis, this link will take you to a list of the best aviation insurance companies we represent.

12. How much does it cost to insure a hangar?

The cost of insuring a hangar depends on several factors, some of which may be the location of the hangar, its insured value, and its intended use. Additional coverages, like hangarkeeper’s liability and hangar contents insurance, may also affect the price of the policy. Private, single aircraft hangars may cost less than $1,000 a year to insure, while large commercial hangars, such as FBO hangars, can cost more. An insurance broker can compare the policies offered by an array of carriers to help determine which policy is the best choice for each client.