Aircraft ownership and use excluded from hangar insurance
Votes
Open
Our hangar association has a general liability policy underwritten by New Hampshire Insurance Company, and when I was reading through it I noticed this under "Exclusions":

Aircraft, Auto or Watercraft
"Bodily injury" or "property damage" arising out of the ownership, maintenance, use or entrustment to others of any aircraft, "auto" or watercraft owned or operated by or rented loaned to any insured. Use includes operation and "loading or unloading".

I don't get it. The purpose of an aircraft hangar is to operate / store / etc. an aircraft that I own. This exclusion would seem to be saying that the insurance company isn't liable for anything that happens with the hangar, since the purpose and primary use of the building is to store aircraft, so any claim could be said to be "arising out of" the use of one (including just ownership).

Ironically it also says elsewhere that the bylaws of the association must be complied with. Those say that the primary use is the storage, maintenance, restoration and construction of aircraft.

Do I need to be looking for another policy? I asked my agent about and she seemed confused and said she'd get back to me but I thought I'd ask here in the meantime.
 
4 Replies
Votes
Thanks Ronald.
I appreciate your opinion and may or may not consult an attorney. Either way it's my prerogative to solicit and compare experiences and parse their relevance myself. And in fact you mentioned one thing that I'd like to know -- are others in my state or other states seeing this kind of language in their policies? Seems worthwhile to me to have a discussion in the community, perhaps someone has had an experience good or bad related to my question? I'm not looking for legal advice nor would I treat any responses as such.

It's like when we talk about flying technique in forums or hangar flying or whatever -- it can be enlightening but we all get that it's not a substitute for instruction from a CFI.
 
Votes
1021 Posts
Then you should ask the lawyers who helped write the bylaws and lease to read the insurance policy and provide their opinion.  Other folks' experience isn't particularly relevant unless they have the same policy you have and are operating under the same state's laws..
Votes
Thanks Ronald.
Lots of lawyers were involved in the development of our bylaws and lease :-) which I wrote in part, but I'm hoping for some feedback / experiences from anyone in the insurance industry, or hangar owners who have similar policies (in case anyone else reads theirs :-), or from AOPA on this specific question before paying more attorney fees.

Since this insurance was purchased through a reputable agent I never thought to look too closely at it before, but now that it appears to be a boilerplate warehouse policy, perhaps that's just what they throw at anyone looking to insure a hangar? Which doesn't seem appropriate but I'd like to know from other hangar owners, do yours look similar? Is this just what we get from the insurance juggernauts? Not that I'll let it stand if I'm not comfortable with the answer but to start I'm just looking for some background / experience / expertise from whoever can provide it.
 
Votes
1021 Posts
You need to show the policy and all your association's corporate documents to an attorney in your state.  Nothing else will give you any assurance of a legally reliable answer.