Netters,
Below is a protion of an e-mail newletter from SkySmith Insurance. I have my Tripacer insurance with them (they are a broker) and have been extremely pleased with their service. I thought it might be of interest to some of you that are not knowledgable on the subject. Keep in mind that the KR with anything but a Lycombing or Continental will be nearly impossible to get insurance on. It's just the name of the game. Larry Flesner ---------- Hull Coverage - do you know what you have? Hull coverage is the protection you are buying for the actual value of the aircraft. It is comparable to the collision and comprehensive portion of your auto policy. Hull coverage is also the portion of insurance that will cover loss from theft or other damage depending on the type of coverage you have purchased. If the hangar collapses and crushes your aircraft, hull coverage will cover it. If someone steals your radios, hull coverage should cover them. Stated or Agreed Value. Aviation insurance is generally a "stated or agreed value" policy. That means if you have a total loss, the claims department will pay the stated value of the policy (minus your deductible). This is different from auto insurance. It is your obligation to value the aircraft at a reasonable value. Most underwriters will consider deviating from book values if you provide proof of value (POV). Proof is in the form of an equipment list including avionics, modifications, engine hours, airframe hours and interior/exterior condition. Usually the value limit is about 10% over book value before you need to provide proof of value. Types of coverage. There are basically two types of hull coverage with each aviation insurance company having their own variations. These coverages are: not-in-motion (NIM) and in-motion (IM). Not-in-motion is when the aircraft is parked and/or moving, but not under its own power. In-motion is when the engine or engines are actually moving the aircraft. Many companies do not include taxi operations under the not-in-motion part of the policy. That means if you have an accident while taxiing with a policy that does not include taxi operations, you will be responsible for repairs to the aircraft. If taxi is included, this coverage might be called not-in-flight. Remember, each company has its own definition of the hull coverage. Deductibles. Deductibles are the portion of the repair that the insured pays. In-motion deductibles are often higher (and sometimes substantially higher) than not-in-motion deductibles. Composite aircraft often have higher deductibles. These aircraft are not considered a mainstream repair and a local shop might not have the experience, tools or materials required to make the repair. A few companies have a different deductible for specific claims they have experienced. For example, one company has a $10,000 deductible for any claim that involves the landing gear (gear up, gear collapse, etc). Another company has a $5,000 deductible for any claim that involves a Pitts S2 canopy. Builder's risk. This coverage is generally for aircraft undergoing restoration or being custom or home built. Builder's risk typically requires the insured to provide a beginning value and a projected ending value for the policy year. This policy will pay the amount as established at the time of the loss. The maximum will be the estimated ending value as stated in the policy. This provides increasing coverage for your kit or restoration project as the value increases. You will need to keep receipts and records to substantiate the value at any particular time. TIP!Be sure to keep receipts and invoices for any changes to your aircraft that might change the hull value. In the event of a claim, be prepared to show these as proof for the loss. It is always a good idea to keep a copy of your equipment list, weight and balance (or records of the installations) in a secure location away from the airplane. This seems like extra work for the owner but it will simplify the claims process, be handy if selling the plane, and is always good information to have on hand.
