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DJI Care Refresh vs Personal Articles Policy (PAP)
4894 14 2017-1-24
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NoSale
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I asked this in other related threads with very little response and information, so I thought I would try a new separate thread specific to the topic.

Many have read the threads on pilots who have purchased Personal Articles Policy (PAP) through State Farm in the US.  There may be other US insurance agencies offering a PAP type policy, but State Farm seems to be the best know insurance agency.

For those not familiar with this topic, PAP covers items like cameras, jewelry, personal medical devices, furs, etc.  To be clear, it does NOT cover liability.  It covers loss and damage to items, carries a zero dollar deductible, and is a stand alone policy.  When I say stand alone, it is not a rider to a homeowner policy.  In fact, does not require any other policy as a pre-requisite to purchase a PAP.  There are a few requirements to define items covered.  In the instance of a Mavic Pro, you must provide a receipt showing its original value, along with a serial number of the item.  Other items, like expensive watches and jewelry, may have different requirements.  But that's besides the intent of this post.

Now that these items have been covered as a background for my question, I would be interested in comments and observations of where purchasing DJI Care Refresh would be advisable either in lieu of a PAP policy, or in combination with PAP.  As best as I can tell, there are two distinct advantages to a PAP:

  • PAP costs less (it varies by state, but generally around $60 for the value of a Fly More Combo, and potentially more with the inclusion of other items like jewelry)
  • Recovery of the lost item is not required.  You could fly the Mavic into a body of water, never to see it again, or shatter it into multiple pieces with the inability to gather all part


For claims made, State Farm will cut you a check for the insured amount, with no change in rates against other policies (if any).  They could drop your PAP if the claims become too frequent, but I have heard that this is not likely unless you have more than a couple of claims.


For those that may still be in disbelief, check with your local State Farm agent, like I and others have done.  The only state that seems to not offer PAP for drones, and I fully assume the Mavic Pro is covered because it is a camera, is California.

What am I missing should I opt to cover using PAP and not DJI Care Refresh? Is there any benefit to purchase both DJI Care Refresh and a PAP (PAP will also cover repairs up to the amount of the covered value).  I would be greatly appreciative and interested in thoughts and comments on this approach to protecting against loss and damage to the Mavic Pro.
2017-1-24
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dcorbo
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@NoSale You have everything right about SF PAP policy except that it will not cover Wear and Tear or Mechanical Failure. If you have any additoinal coverage questiosn let me know. I work for a State Farm agent in NJ. I would say its your best bet to have both the DJI Care and the Personal Articles so that you have coverage in case the drone stops working.
2017-1-30
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DroneFlying
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The biggest argument against a personal articles policy I've seen is that actually filing a claim for the drone could cause your other policy (e.g., homeowner) premiums to rise, even if those other policies aren't with the same insurance company.
2017-1-30
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NoSale
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DroneFlying Posted at 2017-1-30 12:59
The biggest argument against a personal articles policy I've seen is that actually filing a claim for the drone could cause your other policy (e.g., homeowner) premiums to rise, even if those other policies aren't with the same insurance company.

Thanks for the reply, but as others have pointed out and I have confirmed with a State Farm agent, a PAP is a standalone policy.  You do not have to have a homeowner/auto policy with the insurance provider (I don't in this case).  Its not a rider on another policy.  It is truly stand alone.
My understanding from the research of other posters, is that your premium on the PAP is likely not to change unless you make multiple claims.  Most likely you would just lose the ability to renew if you become an insurance risk.
State Farm only requires the serial number of the insured and a companion receipt for the coverage amount.  Things, like watches and jewelry, where a receipt is not available, some determined value is assigned in the PAP.  The Mavic Pro is classified as a camera and my agent has confirmed this.
I do appreciate the response.  I'm just surprised others haven't chimed in on their thoughts about PAP vs. Care Refresh (or both).  I just haven't found any reason to do Care Refresh when a PAP appears to be better coverage with a lower cost.
Again, thanks for your thoughts........
2017-1-30
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NoSale
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dcorbo Posted at 2017-1-30 08:35
@NoSale You have everything right about SF PAP policy except that it will not cover Wear and Tear or Mechanical Failure. If you have any additoinal coverage questiosn let me know. I work for a State Farm agent in NJ. I would say its your best bet to have both the DJI Care and the Personal Articles so that you have coverage in case the drone stops working.

Thank you for the knowledgeable advice.  
When you refer to not covering mechanical failure, I assume this means failure preventing the drone/camera from operating, not failure resulting in a crash.  Is this correct.  Where Care Refresh could be swapped out at a small cost when the drone experiences undue wear or mechanical failure resulting in its inability to operate properly.
Do I understand right?
I am beginning to believe both may be a good approach; although I hate spending extra money when its not necessary.  But in this case, its a small cost for covering just about every incident.
Thanks for the thoughts.........
2017-1-30
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DroneFlying
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"Thanks for the reply, but as others have pointed out and I have confirmed with a State Farm agent, a PAP is a standalone policy.  You do not have to have a homeowner/auto policy with the insurance provider (I don't in this case).  Its not a rider on another policy.  It is truly stand alone."

Yes, it is -- or at least can be -- a standalone policy, but that doesn't mean that it won't / can't affect the premiums of other policies. Ask that State Farm agent you mentioned to put in writing that a claim against your drone PAP policy can't affect the premiums on your other policies and then let us know what kind of response you get.
2017-1-31
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tivoboy
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I don't think the policy impact would be with another insurance underwriter directly and SF is most likely not going to put in writing that it won't impact another insurers rates.  The catch is, that with primary and secondary underwriters they DO ask if you have filed a claim in X number of years, etc.. one can always say NO, and therefore it wouldn't have any impact most likely.  IF one says YES, then it COULD have an impact and if one says NO and it was in fact YES and somehow they find out, the can probably terminate the new policy without any refund or payout.  There's the rub.
2017-1-31
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NoSale
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DroneFlying Posted at 2017-1-31 03:33
Yes, it is -- or at least can be -- a standalone policy, but that doesn't mean that it won't / can't affect the premiums of other policies. Ask that State Farm agent you mentioned to put in writing that a claim against your drone PAP policy can't affect the premiums on your other policies and then let us know what kind of response you get.

I have no other policies with State Farm.  My homeowner and auto policy is with a completely other insurance agency.  Others have indicated the same separate insurance set up.

I could request it in writing, but it would be a moot point since I currently have no other policies with State Farm.
2017-2-3
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DroneFlying
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NoSale Posted at 2017-2-3 12:41
I have no other policies with State Farm.  My homeowner and auto policy is with a completely other insurance agency.  Others have indicated the same separate insurance set up.

I could request it in writing, but it would be a moot point since I currently have no other policies with State Farm.

It doesn't matter which policies are with which companies: they all report claims to a shared database and use the information in it to determine your premiums. And filing a claim is generally considered an indication of a higher risk.

Claims that boost your insurance rates

That's not to say that filing a claim on a drone policy will increase your other policies' premiums, but the possibility definitely exists. One thing that's certain is that when you do file a claim on any policy, that fact will be made available to all insurers.

2017-2-3
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PimpDawg
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I called my State Farm agent today to get a quote about covering my two drones. $60 a year, no deductible.

Since I have home, auto and life policies with them I asked whether my rates would be impacted should I need to file a claim on the drones. They said it is separate from the auto and homeowners and would not impact those at all and especially since I have a claim-free history. I made sure to tell them that if a drone claim (personal article policy) would affect my rates then it's a non-starter and that I wouldn't even bother. They assured me it would not.
2017-2-3
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PimpDawg
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DroneFlying Posted at 2017-2-3 16:15
It doesn't matter which policies are with which companies: they all report claims to a shared database and use the information in it to determine your premiums. And filing a claim is generally considered an indication of a higher risk.

Claims that boost your insurance rates


I read your link and it contains good information. This was of particular interest to me -

"Homeowner claims and auto claims are registered in CLUE and A-PLUS. Health insurance and other types of insurance claims are not included."

2017-2-3
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DroneFlying
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PimpDawg Posted at 2017-2-3 18:24
I read your link and it contains good information. This was of particular interest to me -

"Homeowner claims and auto claims are registered in CLUE and A-PLUS. Health insurance and other types of insurance claims are not included."

"The C.L.U.E. Personal Property report provides a seven year history of losses associated with an individual and his/her personal property." LexisNexis Personal Reports
CLUE is the database I mentioned earlier. So yes, claims against a personal articles policy are in the database.
It's possible that what you were told is true and that State Farm really really won't raise your other policies' premiums if you file a claim against your drone policy. It's also possible that they're just telling you what they know you want to hear to get you to buy the policy, because those State Farm representatives are first and foremost sales people.

2017-2-3
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dcorbo
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DroneFlying Posted at 2017-2-3 19:34
"The C.L.U.E. Personal Property report provides a seven year history of losses associated with an individual and his/her personal property." LexisNexis Personal Reports
CLUE is the database I mentioned earlier. So yes, claims against a personal articles policy are in the database.
It's possible that what you were told is true and that State Farm really really won't raise your other policies' premiums if you file a claim against your drone policy. It's also possible that they're just telling you what they know you want to hear to get you to buy the policy, because those State Farm representatives are first and foremost sales people.

@ DroneFlyng
I work for State Farm in NJ. The benefit of having the Personal Articles Policy is that it is not a home or auto policy. This keeps the claims completely separate from your home and auto so it will not hurt you on other lines of insurance. The claim may come up on a loss run but once you tell the person quoting you it was a personal articles policy they should disregard the claim. That is one of the main reasons State Farm keeps the policy separate from your home.
2017-6-8
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DroneFlying
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dcorbo Posted at 2017-6-8 11:23
@ DroneFlyng
I work for State Farm in NJ. The benefit of having the Personal Articles Policy is that it is not a home or auto policy. This keeps the claims completely separate from your home and auto so it will not hurt you on other lines of insurance. The claim may come up on a loss run but once you tell the person quoting you it was a personal articles policy they should disregard the claim. That is one of the main reasons State Farm keeps the policy separate from your home.

This keeps the claims completely separate from your home and auto so it will not hurt you on other lines of insurance.

As I understand it, each insurance company is (within the bounds of the law) allowed to decide for itself what to do with the claim history; isn't that correct? If so, saying that it "will not hurt you" might apply to one but not another.

The claim may come up on a loss run but once you tell the person quoting you it was a personal articles policy they should disregard the claim.

Maybe I'm reading too much into it but I couldn't help but notice that you used the word "should" and not "will". Others who work for State Farm have also weighed in on this issue and seem to think that filing one of these claims might have some financial impact in other areas.
2017-6-8
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iRCaDiKz
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i used to have Personal Article Policy from S.F. my dji phantom 4 got stolen, claimed. they sent me a check, and dropped me from the policy... now i bought a new 4 pro, i don't know if they're going to insure my new dji phantom 4 pro.
2017-11-7
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