Insuring High-Value Drones & Custom Builds Valuation, Agreed Value vs ACV

Let me paint a picture you might not like.

You spent months collecting parts, watching tutorials, and soldering tiny wires to build your dream custom drone.

Or you bought that shiny new DJI Matrice for your photography business.

You're outside on a perfect day, everything is going smoothly... and then a sudden gust of wind, a misjudgement of distance, or just bad luck sends your pride and joy crashing into a hard tree.

That dreaded crunching sound is something no drone pilot wants to hear.

We've all either experienced it, or at least experienced it at times.

That gut-wrenching feeling isn't just from the crash itself, it's from the thought of replacement costs.

This is where drone insurance, especially for high-value and custom builds, goes from a "nice-to-have" to a "must-have."

Think of this guide as a friendly coffee chat.

We'll simplify the complicated so you can fly with confidence, not fear.

Insuring High-Value Drones & Custom Builds Valuation, Agreed Value vs ACV

Standard "Toy" Insurance Won't Cut It

You might think, "I have renter's insurance" or "My gear is covered under the general policy."

This might be fine for a beginner drone.

But for high-value equipment and custom builds, it won't be much more than a band-aid.

Standard policies often limit electronics categories or exclude "aircraft."

The biggest problem is that they don't understand the true value of your custom creation.

Parts problem: Your custom 7-inch long-range FPV drone might have a $200 frame, a $150 flight controller, $100 motors, and a $400 video system.

An insurer that doesn't specialize in drones will consider it a pile of random electronics, not a finely tuned machine.

The Benefits of Agreed Value

This is where the most important concept comes into play: Agreed Value vs. Actual Cash Value (ACV).

1. Essence: Agreed Value vs. Actual Cash Value

This is the most important decision you'll make when purchasing insurance.

Making the wrong choice could result in a loss of thousands of dollars when you file a claim.

2. Actual Cash Value (ACV): A Deal with Depreciation

How it Works: In an ACV policy, in case of a total loss, the insurance company will pay you the drone's current market value.

Age, wear, and tear are subtracted from the price you paid.

Abstract reality: Suppose you bought a DJI Inspire 2 two years ago for $3,000.

It was destroyed.

The adjuster will take out depreciation and decide that his ACV is now $1,500.

And that's all he gets, while a new replacement would cost $3,000.

It's painful.

When can it be okay? ACV policies are inexpensive upfront.

If the drone is low-cost and easily replaceable, it might work, but the risk is too great for any valuable drone.

3. Agreed Value: Sleep-Easy Policy

How it works: Before the policy starts, you and the insurer agree on the drone's value.

You provide receipts, a build list, and photos to justify the value.

If there's a total loss, they pay the agreed-upon amount, provided the cause of the loss is covered.

Best part: If you build a custom FPV for $2,500, if you agreed on $2,500, and it's lost, you'll receive a check for $2,500.

Why perfect for custom builds: This is the only way your drone is insured at its true value.

The insurer is valuing your labor, expertise, and specific components.

How to Prove the Value of Your Custom Drone (Valuation Process)

I know, it may sound a little daunting, but it's simple.

Insurers ask for proof, and it's in your best interest to have it all organized.

Here's a pre-insurance checklist:

• Save every receipt: Create a dedicated folder in your email or keep a physical file. Save every frame, motor, ESC, GPS, camera, gimbal, every receipt.
• Document the build process: Take photos of every stage of the build. Flight controllers stacked, wired-up PDB, final clean build, all this is proof that this was a functional aircraft, not just a bag of parts.
• Create a build sheet: Create a simple spreadsheet and write down every component, model number, and cost. The total at the bottom will be your starting point for the agreed-upon price.
• Take glamour shots: Take good photos of the finished drone from every angle. This will help with identification and prove its condition.

This homework will streamline the insurance process and provide a good record if you ever want to sell.

Beyond the Drone: Liability and Other Must-Have Coverages

Protecting the drone (also known as hull insurance) is important, but don't forget about the surrounding coverage.

• Liability coverage: This is non-negotiable, especially for commercial pilots. If your drone damages property or injures someone, liability coverage protects you from devastating out-of-pocket costs. This can also be a legal requirement in commercial work.
• Payload coverage: Does your drone carry a $5,000 full-frame camera? Payload coverage protects the attached equipment.
• Personal injury coverage: Covers legal fees and damages if someone claims you invaded their privacy or defamed them through footage.

My Personal Insight: Peace of Mind Is Priceless

I had my first high-value custom build insurance.

I found the premium a bit expensive, about 5–10% per year of the drone value.

Then, on a shoot, the video signal was lost over the Rocky Canyons, and the drone went down.

The wreck was never found.

Instead of panicking, I filed a claim, sent the build sheet and receipts, and within two weeks, I received a check for the full agreed-upon value.

That insurance didn't just save me $2,000; it saved my business and sanity.

The premium seemed like a bargain after that.

Your Next Step: Fly Safe, Fly Insured

Crashing is part of both hobby and business.

It's not a matter of never happening, it's just a matter of when.

The goal isn't to never crash; the goal is to make a crash a temporary setback, not a financial catastrophe.

Action plan:

1. Do inventory: Take 30 minutes today to make a list of all drones and components. Find receipts!
2. Get quotes: Find drone-specialist insurers (type "drone insurance agreed value" while searching). Have build sheets ready.
3. Read the fine print: Understand the difference between ACV and Agreed Value. Don't just choose the cheapest; choose the smartest.

The freedom of flying is an incredible feeling.

Don't let the fear of a worst-case scenario stop you.

Get the right coverage and enjoy the skies without stress.

Safe flying!

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Svetlana

Svetlana is a writer and senior editor at DroneInsuranceUSA, passionate about making drone laws, insurance, and safety tips simple for every pilot.

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Editorial note: This article was prepared by the DroneInsuranceUSA editorial team using official FAA guidance, insurer resources, and industry FAQs. We update the content regularly to reflect changes in drone regulations and best practices.