1. Forms
2. HO
3. HO-34-03

What the form is

The HO 34 03 Personal Injury Aircraft Exclusion is an endorsement to a homeowners insurance policy. Its primary purpose is to exclude coverage for personal injury liability that arises from the ownership, maintenance, use, loading, or unloading of any aircraft. This exclusion specifically includes unmanned aircraft (commonly known as drones), regardless of whether they are considered model or hobby aircraft. This endorsement is typically attached to a policy when personal injury coverage has been added through other endorsements, such as the HO 24 82 Personal Injury Coverage or HO 24 10 Personal Injury Coverage (Aggregate Limit Of Liability).

Classes of business it applies to

This endorsement is used in Personal Lines, specifically for homeowners insurance policies (like HO-3, HO-2, HO-5, etc.). It is relevant for insureds who have opted for personal injury coverage but where the insurer wants to explicitly remove the potential liability associated with aircraft, especially given the increasing popularity and use of personal drones.

Real-world example: An insured has a standard HO-3 policy and adds the HO 24 82 endorsement to gain coverage for personal injury offenses like libel, slander, or invasion of privacy. If this insured owns a drone and uses it in a way that leads to an invasion of privacy claim, the HO 34 03, if attached, would exclude coverage for this claim, even though it falls under the definition of personal injury.

Special considerations

• Reduction in Coverage: It's crucial to understand that adding this endorsement results in a reduction of coverage for the insured.
• Clarification of Aircraft Exclusion: Standard homeowners policies often contain an aircraft liability exclusion but may have exceptions for model or hobby aircraft. When personal injury coverage is endorsed onto the policy, the HO 34 03 serves to clarify that personal injury arising from any aircraft, including those previously excepted model/hobby aircraft and drones, is excluded from the personal injury coverage.
• Applicability: This endorsement can generally be used with most standard homeowners forms (e.g., HO 00 02, HO 00 03, HO 00 05, HO 00 06, HO 00 08). However, it is noted that it cannot be used with Form HO 00 14 (Contents Comprehensive Form).
• Response to Emerging Risks: The development and use of this endorsement reflect the insurance industry's response to new and evolving risks associated with technologies like unmanned aircraft systems (drones).

Real-world example: If an insured with personal injury coverage (but without the HO 34 03) inadvertently flies their hobby drone into a neighbor's yard, causing no property damage but leading to a personal injury claim for trespass or invasion of privacy, there might be coverage under the personal injury endorsement. If HO 34 03 is attached, that coverage for personal injury would be excluded.

Key information for agents and underwriters

• Agent's Duty: Agents must clearly communicate the impact of this exclusion to policyholders, particularly if the insured is known to own or operate drones or other types of aircraft. This ensures the insured is aware of the coverage gap for personal injury claims related to aircraft.
• Underwriting Tool: Underwriters utilize this endorsement to manage and mitigate the often unpredictable and potentially significant liability exposures arising from the personal use of aircraft, especially drones. These exposures can include claims for invasion of privacy, nuisance, trespass, and other personal injury offenses.
• Premium Impact: Some sources indicate that the attachment of this endorsement may result in a premium credit or reduction, reflecting the decreased scope of coverage. For example, one source mentions the premium is determined by multiplying the base premium by 0.90 when this endorsement is added.
• State-Specific Availability: As with all ISO forms, its availability and specific wording can vary by state and edition date. Professionals should always refer to the specific state filings and the policy language itself.
• Risk Management: For insurers, this endorsement provides greater certainty in claims settlement by explicitly excluding personal injury arising from aircraft, an area that might otherwise be a source of ambiguity if only relying on the general aircraft exclusion in the main policy when a separate personal injury endorsement is active.