Your new christmas present and how it affects your insurance

Despite the hefty price tag, they were one of the most desired gifts this Christmas. But if you unwrapped a drone, you might struggle to insure it.

The unmanned aircraft are being excluded from some home and contents policies amid fears that users could be liable for privacy and personal injury claims.

Insurance cover varies widely between insurers with some insurers excluding aircraft and remote controlled vehicles to protect their underwriters from exposure to huge legal payouts.

A spokeswoman for IAG, which owns several insurance brands including AMI, State and NZI, said people should read their policy and contact their insurer if they were unsure.

"Under NZI Echelon contents policies, there is limited liability cover for users based on Civil Aviation Authority guidelines. But there was no cover provided under AMI or State contents policies, she said."

"We are very aware of the growing popularity of drones and model aircrafts and so we will continue to carefully monitor this as part of our ongoing reviews of IAG's products."

Drones are increasingly being used in commercial applications and companies need to make sure they comply with the Civil Aviation Authority regulations for drones and have adequate cover for their business.

While insurance cover can be tricky there are multiple insurers offering cover for a broad scope of UAV and Drones. We have cover in place for a number of operators for both liability and their equipment. It pays to speak with a broker whose got the experience to get it sorted.
— Sam Kerr, Commercial Broker
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