If your aircraft is damaged or destroyed while staying in rented hangar space due to circumstances beyond your control, you as the private aircraft owner who hires hangar space may be left in a bind. As previously stated, aviation insurance is designed to safeguard the aircraft while it is in service, and it does not cover the replacement of lost tools, supplies, or components that may be damaged.
Dedicated hangar insurance, much like airport liability insurance, provides business property protection, liability protection, car liability insurance, and pollution insurance to leased hangar owners. To properly comprehend the security provided to the owner, it is necessary to analyse each of these key components. Business property protection is a tool that ensures that the assets that keep your business moving, such as aircraft tugs and ground support equipment (GSE), tools, parts, and supplies, are replaced if they are damaged. Ground risk hull coverage may be added if the company owns and keeps aircraft in addition to leasing hangar space. General liability insurance gives owners peace of mind by ensuring that they are protected if a third party is hurt at their facility or if a third party’s aircraft or equipment is damaged or destroyed. Automobile liability insurance is offered as an add-on to hangar insurance plans since many FBOs provide “courtesy vehicles” or a shuttle service. Because FBOs deal with fuel and a variety of chemicals on a regular basis, pollution insurance is offered. This section of the policy guarantees that the organization will be able to cover the costs of containment and clean-up, as well as any subsequent environmental agency lawsuit.
While there are a variety of insurance policy providers, they are all members of the National Hangar Insurance Program in general (NHIP). The National Hangar Insurance Program (NHIP) is essentially an organization that standardized hangar insurance and attempted to create a relationship with Travelers, a renowned insurance business with a global presence. There was no obvious order and organization to insure an owner’s hangar before NHIP controlled this rather obscure, specialized area of the market. Due to the intrinsically sensitive nature of aircraft, as well as the operational rather than static character of aircraft, traditional types of property and renter’s insurance does not exactly fit the bill.
First and foremost, ensure that your aircraft hangar insurance is supplied by an NHIP-accredited broker. Otherwise, they’ll probably value an aircraft tug similarly to a generic warehouse tug or pallet mover, despite the fact that aviation-specific support equipment can cost several times as much as common industrial machinery.
Consider the expenses of airplane parts and components that are stored in a multi-purpose hangar on a regular basis. Even a modest turbine engine may cost more than $100,000; piston aircraft engines might cost anywhere from $20,000 to $50,000, but a comparable industrial engine may only cost a third of that. Because industrial equipment and components are used in other industrial disciplines, insurance underwriters who do not specialize in hangar insurance will undervalue the contents of the hangar.