What does aircraft hull insurance cover, and what's the difference between in-motion and not-in-motion cover?

Not in motion is ground cover: the aircraft parked, tied down or hangared. It covers fire, hail, windstorm, flood, theft, vandalism and hangar collapse. It is the only hull cover during builder's risk on a homebuilt (see experimental aircraft insurance) and is often the only cover kept during long maintenance lay-ups.

In motion covers the aircraft whenever it moves under its own power: taxiing, takeoff, flight and landing. This is where pilot error claims happen, so deductibles are higher: for example, $0 ground and $1,000 in flight, or a percentage of hull value for seaplanes and homebuilts in Phase I.

• Wear, tear and gradual deterioration such as corrosion or worn components.
• Mechanical or engine failure that isn't caused by an accident. A follow-on crash may be covered, but the failed part itself often isn't.
• Flights outside the pilot warranty, or with an expired annual inspection.
• Use not declared on the policy, such as charging for flights under a pleasure-use policy.
• Damage to the hangar building, which needs separate cover (see aircraft hangar insurance).

Hull also doesn't pay injured passengers or third parties. That's liability, explained in smooth vs per-seat liability.

Hull rates vary widely: about 0.9–1.3% for piston airplanes (airplane insurance cost), around 2% for helicopters, and 8–12% for drones. Light sport aircraft follow piston-airplane rules at lower values (see light sport aircraft insurance). Renters buy a version of hull cover called non-owned physical damage (private pilot insurance), and co-owners share one agreed value (aircraft partnership insurance). How hull claims are settled is covered in aircraft insurance claims: what to expect.