Does that actually happen, though, other than in cases of gross negligence
by the pilot? I know about subrogation, but I've never heard of it being
invoked.

Yes, it does happen, I know personally of an individual (student pilot)
who asked the FBO up front "Am I covered under your policy?, Do I need
renters insurance?". The answer was yes you are covered, and no you
dont need insurance.

Fast forward a couple of months, and the pilot is flying his first solo
x/c into an unfamiliar airport, and he has a rough landing resulting in
a prop strike. The airplane is recovered, repaired and the returned to
service. The pilot goes on to complete his PVT certificate. A couple
months go by. The pilot then receives a threatening demand letter from
the FBO's insurer asking him to repay the $10000+ repair bill.

My opinions:

- Dont EVER rely on someone else to provide insurance coverage for you.
Even if you have thoroughly have read and understood their insurance
contract, how do you know that they paid the bill that month and that
the policy is even in force?

- Get SOME renters insurance. ANY amount is better than none at all.
What you are really buying is legal representation. Even if you get
named in some trivial lawsuit it can be very costly to clear your name.


Richard