AMA News
Homeowners Coverage — Model Aircraft
This article originally appeared in the October 1979 issue and is reprinted for members who may have missed it the first time.
Ever since a Pennsylvania court upheld a ruling excluding model aircraft from coverage under a homeowners insurance policy, confusion has arisen over whether AMA liability protection is primary, secondary, or subject to other coverage. The subject was discussed in Model Aviation (March 1979, p. 73) and RC Modeler (August 1979, p. 60). Regardless of other coverage questions, AMA protection applies where other coverage does not. The surest protection for an AMA member is to maintain AMA membership and automatic coverage.
If many claims are made against AMA's coverage, however, AMA's costs could rise and ultimately increase membership dues. Because the Pennsylvania ruling treats model aircraft the same as full‑scale, passenger‑carrying aircraft, overturning it in the courts is unlikely and would be expensive to pursue. Insurers have been alerted that model aircraft accidents can be costly (even though they are rare), and they may be unlikely to return to the earlier view of models as harmless toys.
There is another, practical approach that has already restored model‑aircraft coverage in some homeowners policies at no extra cost. The idea was suggested by Alex Chisholm, an AMA member and independent insurance agent who formerly served as AMA District X Vice‑President and has long been active in model aviation in the Fresno, California area. Chisholm has provided insurance protection for West Coast model firms and knows the business well.
What Chisholm has done is have an endorsement added to homeowners policies specifying that the aircraft exclusion clause does not apply to model boats and model airplanes. A request for that endorsement coming from an independent agent carries weight, and Chisholm has obtained acceptance for several modeling clients from multiple companies. If one agent can do it, others can too; it is worth trying with the goal of persuading insurers to accept models for what they are.
Chisholm notes the case in which a homeowners insurer denied a claim and the court backed the insurer, asserting an R/C model airplane is as much an aircraft as a passenger‑carrying 747. While that conclusion may seem absurd, insurers will exploit coverage loopholes when a large claim is at stake.
About 15 years ago it became apparent that aircraft insurers write specific coverages for aircraft, airports, and allied activities, while homeowners policies—introduced around 1954—carry a longstanding aircraft exclusion. Since the advent of R/C models, insurers have gradually become aware of the exposure. If modelers can demonstrate a legitimate need, insurers will remove the aircraft exclusion for model airplanes.
In 1964 Harold Cox, an AMA member and claims manager for a leading insurance company, worked out a clarification of the aircraft exclusion that allows insurers to cover liability for model airplanes. Since then, several modelers have obtained primary liability coverage by attaching a similar endorsement to their homeowners or business liability policies. Experienced underwriters who have seen the endorsement have accepted it; Chisholm reports he has never had it turned down by a knowledgeable underwriter.
The wording used to modify the aircraft exclusion is:
"The aircraft exclusion relating to watercraft and aircraft does not apply to model boats and model airplanes of the hobby variety."
Transcribed from original scans by AI. Minor OCR errors may remain.
