Non-pilot aircraft owner insurance

[AuntPeggy]

OK, so we are purchasing a home in Oklahoma from an heir. There is a hangar with an airplane on the property and we are willing to let him keep the plane there for a year or so because our airplane cannot get in the door of the hangar. The aircraft owner does not have a pilot's license, but he is interested in learning to fly eventually. The plane needs some repair, too.

Here is the question. How can he get non-pilot/owner insurance on the plane? Since it is on our property, we'd like to be named on the policy, too, to prevent subrogation. Can that be done? How?

 

[murphey]

I'd recommend 3 calls - one to your aircraft insurance agent, one to whoever will be your homeowners agent and another to AOPA. Your homeowners agent/company probably won't understand what you need but at least it's the starting point for them to investigate what they need to provide/cannot provide.

Are you going to charge him rent? It should be at least the cost of the insurance and the amount the hangar land/building contributes to your tax bill. Otherwise, you could consider it a commercial property (different insurance issues) in which you can now depreciate (Schedule E?) and use both as a write-off and income. Don't forget liability issues on your insurance. What if he is taking lessons, crashes on your property? Or someone elses?

 

[gismo]

OK, so we are purchasing a home in Oklahoma from an heir. There is a hangar with an airplane on the property and we are willing to let him keep the plane there for a year or so because our airplane cannot get in the door of the hangar. The aircraft owner does not have a pilot's license, but he is interested in learning to fly eventually. The plane needs some repair, too.

Here is the question. How can he get non-pilot/owner insurance on the plane? Since it is on our property, we'd like to be named on the policy, too, to prevent subrogation. Can that be done? How?

You don't need to be a pilot to purchase a policy for an airplane. Obviously he doesn't need in-flight coverage at this point and ground only coverage can include liability with protection for the hangar owner. You or he could also buy a policy for the hangar that covers the structure as well as liability protection (woudn't cover the airplane itself AFaIK). The policy on my hangar includes liability and costs me around $600/yr for a three stall building.

 

[poadeleted20]

It's called "not in motion" coverage. Call your insurance broker, and the policy owner need not be a pilot.

BTW, there's also something called "all risks except flight," which would allow starting and taxiing the airplane. Also, if it's just going to sit, the owner would be well advised to pickle the engine, but may not know that.

As for a policy for the hangar, there are issues when someone buys insurance on something they don't own. Tread carefully on that. Might be better for many reasons to establish a contract renting the hangar to the aircraft owner, or renting space in the hangar, even if it's onlyenough to cover your insurance premium on the hangar which I gather you own.