Renter Insurance

"OP" wrote:
...
But if you get a prop strike or bend a wing spar and the damages
go upward of $30,000 or $40,000, I think the insurance company
is coming after the renter to recoup as much of their cost as they
can.


On average, these suits are halfway across the country; jurisdiction
is where you live and generally crash. So they have to engage counsel
in your state, and who don't mind charging a big corporation at all.

Your first filing with the court costs little or nothing, a simple
denial of the complaint. It's then the plaintiff who gets to spend
big money first, in a factual investigation to cover all possible
defenses you might raise later. Aviation cases are expensive, because
every little thing has to be explained to a jury, which means also
lining up experts. In auto accidents, they don't have this problem
because jurors drive cars. While they're spending all this money, the
defendant need do little. Say at a nontowered field you run into the
freakiest turbulence and wind shear on short final you've ever
encountered there. They have to prove against this defense. Find
others landing at that time. Experts on pilot proficiency expected
for handling this stuff.

So they know they're not taking a $30K case to trial, where it gets
really expensive. The experts clock in at $5K a day plus first class
airfares. Defendant knows that too. Insurance company must assume
that maximum money for them will be a fraction of $30K in a
settlement. It's very easy for them to wind up with a net loss
through litigation. So again I want to know how even occasional such
suits are.

Fred F.

"TaxSrv" wrote settlement. It's very easy for them to
wind up with a net loss
through litigation. So again I want to know how even occasional such

An airplane could easily cause $1M or more in damage or personal injury.
This is rare but not unheard of. The costs you mention would be negligible
vs. such a claim. Even pilots who do not have visible assets will generally
have a visible future income stream that can be attached.

Insurance is not to cover anticipated, common occurrences; it is to cover
the risk of rare but catastrophic losses.

--------------------
Richard Kaplan

www.flyimc.com

"Richard Kaplan" wrote:

An airplane could easily cause $1M or more in damage
or personal injury.

You changed the facts from $30K to $1M and still haven't sold me.
Grieving widows and disfigured plaintiffs can get $1 million PI
judgments OK; much tougher for a big insurance company who has
collected premiums to make the payout to get sympathy from a jury
relative to sympathy for you. Unless you have enough cash or
equivalent they'll take the chance you'll settle w/o going near trial.

Even pilots who do not have visible assets will generally
have a visible future income stream that can be attached.

That's good for small claims court stuff. Look up the law for wage
garnishment in your state, which likely places a low limit on the
amount per pay period. Then look for protections the wage earner has
which can reduce their recovery further, and that amount can be a mere
agreement, not a court order. Change jobs and the litigation starts
all over. Meanwhile, some law firm in your town is freely sending big
legal bills to like Avemco.

Fred F.

"TaxSrv" wrote in message

You changed the facts from $30K to $1M and still haven't sold me.
Grieving widows and disfigured plaintiffs can get $1 million PI
judgments OK; much tougher for a big insurance company who has
collected premiums to make the payout to get sympathy from a jury

Perhaps so. Perhaps not if they can portray you as a "rich pilot" -- that
is the public perception of ALL pilots.

And if the issue is property damage then the dollar amounts are pretty clear
and can easily be $1M.

That's good for small claims court stuff. Look up the law for wage
garnishment in your state, which likely places a low limit on the
amount per pay period. Then look for protections the wage earner has

And it is worth it to have someone go after you in this manner?

This is particularly significant if -- as it not unusual -- a pilot has a
professional job where such a judgment could raise questions in an
employer's mind about the employee's integrity and/or financial solvency.
Credit checks are not unusual as part of pre-employment screening. Even
if someone were hired, I suspect an employee with garnished wages of this
nature might well raise red flags in the mind of supervisors regarding their
fitness for advancement in the company.

** All that aside, if nothing else a judgment is worthwhile for an insurance
company to get to protect themselves against some future windfall you may
receive. Insurance companies can be patient. Many, many people will
eventually receive an inheritance or acquire assets over a period of time.
Do you really want to live your life playing a cat and mouse game avoiding a
financial judgment?


--------------------
Richard Kaplan

www.flyimc.com