Insuring your drone: the basics

Over the last few years, drones have grown in popularity. You may be asking yourself if your drone is covered by your insurance. We’ve put together some tips and advice on the best ways to protect your drone under your contents insurance, which can help save you money and time.

Why do I need cover for my drone?

Insurance is designed to give you peace of mind should something unforeseen happen. It’s relatively well known that accidents can and do happen when operating a drone, even with the most skilled drone operators. Without insurance, you may need to pay for repairs or replacement out of your own pocket, because no matter how careful you are, you can’t control the outcome of an accident, burglary or fire.

Is my drone covered under my contents policy?

In most cases, yes. Although it’s worth knowing that many policies will only cover drones up to a certain limit and in certain circumstances.

If you’re an AA Insurance customer, your drone (including any parts and accessories) is covered under our Contents Insurance Policy up to a maximum of $5,000 and under our Limited Contents Insurance Policy, it is covered up to $1,000. You can find more information about how they are covered in our policy document. This information is noted under the section 'Limits on what we will pay', under 'We limit cover for some contents'.

If you accidentally cause damage to someone else’s property while using your drone, you may be held legally liable for the costs. To protect yourself from this, AA Insurance provides $2 million of legal liability cover while using your drone, provided you are not breaching New Zealand Civil Aviation Rules.

Be sure to familiarise yourself with your policy wording so that you understand the details of your cover, including any exclusions that apply.

If I have contents insurance, can I use my drone for business purposes?

If you're flying your drone for business purposes, it’s important you check whether your policy covers this type of use. If you’re an AA Insurance customer and hold a Contents Insurance Policy, it's automatically covered up to $3,000 but you may choose to increase your policy limit for business tools and professional equipment. If you hold a Limited Contents Insurance Policy with us, the cover for your drone would remain at a maximum of $1,000 when used as part of business activities.

Whilst the drone itself would be covered when used for business purposes, liability arising from that use would not. For example. if you're flying your drone for a business project and it damages someone else's property, it will be your responsibility to cover the repair costs. If you're planning on using your drone as part of your business, you may want to consider taking our additional insurance to cover you for business liability. It’s important to choose the policy best suited to your needs.

How can I keep safe when operating my drone?

Here are a few tips to help you keep safe when using your drone:

• Before flying over any private property, ensure sure you have the owner’s permission.

• In public areas, you’ll need your local council consent to fly your drone overhead. Air Share has compiled a list outlining local New Zealand council regulations that will help you understand what’s permissible when flying your drone in public areas in your neighbourhood.

• The rules of New Zealand Civil Aviation (CAA) state you must not fly your drone higher than 120 meters (400 feet) above ground level.

• Always make sure you have visual contact of your drone (with your own eyes, don’t rely on using binoculars or other visual aids, it’s best to use your naked eye).

• Make sure you read the full CAA operating rules.

You can find more tips to help you fly your drone safely on CAA's website.