Whether you like the idea or not, drones are becoming a new hot hobby. Flying these remote-controlled unmanned aerial systems (UAS) is so popular that drone-flying hobby groups are springing up across the country.

But if you fly one and crash it into a local award-winning rose garden or unwittingly capture images of a neighbor sunbathing, is the property damage or personal injury (invasion of privacy) covered by your insurance?

“Don't assume it is,” says Sean Hickey, senior vice president and property casualty practice leader at Rose and Kiernan, Inc., in East Greenbush, New York. “It varies because no two homeowners' policies are alike.”  If you have purchased a drone or are thinking of giving one as a gift, ask your insurance agent about coverage for any potential damage.

The issue of recreational or hobby drones is emerging and while some municipalities are scrambling to figure out what safety regulations drones require, insurance companies are starting to address the growing issue. Technically, a drone is considered an aircraft, says Hickey, but insurance and federal aviation regulations deem some drones and drone use as hobby or recreational. If drone use is for recreational purposes, then any damages incurred are likely covered under a homeowners' policy, but you have to check.

What could possibly go wrong with a drone? One quick look at the news reveals the havoc some drones bring. And their use is on the rise. According to a recent report by the aerospace research firm Teal Group, “UAV [unmanned aerial vehicles] production will soar from current worldwide UAV production of $4 billion annually to $14 billion, totaling $93 billion in the next ten years.”

And drones are popping up where they shouldn't. According to FAA reports, pilots spotted drones in 238 instances in all of 2014 but that number skyrocketed to more than 650 by August 9 of this year. Drones can potentially damage a larger aircraft's engine or cause a dangerous distraction.

Even if drones aren't in forbidden airspace, they can still cause problems big enough to get insurance companies involved. Property and personal injury top any list of potential drone mishaps. Even experienced users can lose control of a drone and damage a home, a car, or an unsuspecting person. Pop star Enrique Iglesias sustained a hand injury after reaching for a drone that often films his concerts. 

To ensure proper insurance coverage, drone users have to be a little more savvy about their equipment and local regulations than the typical model airplane hobbyist. According to Hickey, drone owners need to know what kind of craft they have (including how much it weighs), the airspace regulations where they plan to fly (especially around airports, military bases, schools, and houses of worship), how high the drone is capable of flying, and if any certification is required to fly.

The FAA offers some hobby or personal use classification guidelines, and the organization has contributed to a public awareness campaign called Know Before You Fly that helps drone owners fly responsibly.

Personal use drones have to meet a few requirements – they can't weigh more than 55 pounds and can't be used for carrying people or cargo. Drone users are restricted from flying them higher than 400 feet, must be able to see the drone at all times, and must keep them away from forbidden areas (who can forget the drone that landed on the White House lawn?) or airspace. For instance, did you know flying a drone in any airspace above Washington, D.C. and within a certain radius of the Ronald Reagan airport is strictly forbidden? As Hickey says, no insurance plan will cover a legal violation.

Drones also inspire contention over noise and privacy issues. Hickey recounts the case of a New Jersey resident who shot down a neighbor's drone. To be safe, always get permission if you fly over personal property to avoid any claims over a reasonable expectation of personal privacy (generally considered under the personal injury section of your homeowners' insurance). Because many drones have camera capabilities, the possibility for invading someone's privacy is pretty high. You might be trying to map your land or get a great scan of the sunset, but if you happen to capture your neighbors' kids on video, they might not approve.

And while insurance might cover drone use for hobby or personal use, you won't be covered if you're using the drone for any kind of business use. That means if you moonlight as a real estate agent, use a drone for a video tour, and damage a home, your homeowners' policy probably won't cover the damage. The same rules apply if you sell any of the spectacular landscape or home photos you have taken with your drone. Making a profit from your drone will jeopardize your insurance coverage.

So how can you be sure you're covered if something happens?

Talk to your insurance agent to make sure you understand your policy's wording and take careful note of any exceptions, exclusions, or specific wording or definitions surrounding drones or aircraft. Use common sense when you fly, says Hickey, and know the local laws.

With a little knowledge of regulations and policy, drone users can have a great time with this rapidly growing hobby.

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