Van's Air Force
Don't miss anything! Register now for full access to the definitive RV support community.
Insurance
- Thread starter Tommy123
- Start date
This is a question for an insurance broker. Remember that the broker is supposed to work for you. There are several well-recommended brokers discussed in past posts. I use Jenny/Leah at Gallagher Agency (they advertise in the VAF side-bars), am happy with their work, and recommend them. The call is free.
Paul Thomas
Well Known Member
How much time on engine and prop? That seems awfully low if everything is new just adding the cost of the kit, firewall forward, and avionics at today's prices. It' not what you have in it, but what it would cost to replace.
At what % of policy are they totally airplanes these days?
At what % of policy are they totally airplanes these days?
IMHO this is too simplistic, especially given the large discrepancy between kit (parts) cost and current market value. You need to choose between guaranteed higher premiums (current market value) and lower premiums but lower payouts if you should have a major accident. You need to talk with a broker and find out what these different costs are, in order to make a knowledgeable decision based on your own risk tolerance.
wirejock
Well Known Member
Very good to work with. I have my actual cost as hull value.
Once she flies, I may adjust.
Tankerpilot75
Well Known Member
Don’t under insure
Having just gone through a prop strike experience at Airventure last summer I suggest you carefully consider the hull value question. At the time of my prop strike I carried a hull value of $90k on my RV7A. Insurance companies will likely total your aircraft when the damage repair cost reaches 60% of its insured value.
An engine removal/reinstall and tear down inspection along with new prop by itself will easily reach the mid $40s. Now add to that any hull/gear repair, transportation cost and other damages and you’re getting real close to the airplane being totaled at my previous insured value of $90k.
Now the question for you is: “at what price point are you willing to sell your aircraft to the insurance company?” Insure it too low and they’ll total it, pay you it’s insured value and the sell it for its salvage value which will net them a smaller loss. Last year’s prop strike cost my carrier close to $50k and I paid out over $8k for work I wanted done since everything was torn apart and a few upgrades.
Frankly, after my recent experience I’ve increased its hull value to a figure that I would be willing to accept as a totaled aircraft - which is quite a bit higher than my previous $90k but still less than its current market value of around $150-$160,000. The premium increase is small change compared to what my true loss would be if it was totaled in the future.
Having just gone through a prop strike experience at Airventure last summer I suggest you carefully consider the hull value question. At the time of my prop strike I carried a hull value of $90k on my RV7A. Insurance companies will likely total your aircraft when the damage repair cost reaches 60% of its insured value.
An engine removal/reinstall and tear down inspection along with new prop by itself will easily reach the mid $40s. Now add to that any hull/gear repair, transportation cost and other damages and you’re getting real close to the airplane being totaled at my previous insured value of $90k.
Now the question for you is: “at what price point are you willing to sell your aircraft to the insurance company?” Insure it too low and they’ll total it, pay you it’s insured value and the sell it for its salvage value which will net them a smaller loss. Last year’s prop strike cost my carrier close to $50k and I paid out over $8k for work I wanted done since everything was torn apart and a few upgrades.
Frankly, after my recent experience I’ve increased its hull value to a figure that I would be willing to accept as a totaled aircraft - which is quite a bit higher than my previous $90k but still less than its current market value of around $150-$160,000. The premium increase is small change compared to what my true loss would be if it was totaled in the future.
papamike
Well Known Member
After discussing this issue with my broker at renewal time, we agreed that a fair value for my -7 was equal to what I'd be willing to sell it for.
For first flight we started out with the amount I estimated I had in the airplane. The next year we upped that value to a fair resale amount. The added premium cost was negligible.
I feel like I could ruffle some feathers here, but I've been amazed at how reasonable my insurance has been considering my (low) TT and tailwheel experience.
For first flight we started out with the amount I estimated I had in the airplane. The next year we upped that value to a fair resale amount. The added premium cost was negligible.
I feel like I could ruffle some feathers here, but I've been amazed at how reasonable my insurance has been considering my (low) TT and tailwheel experience.
Who is your broker if you don't mind sharing?
I’d bet that you really only have $100K-$200K coverage where most of the risk is - in the passenger seat.
The point being? If someone is going to sue they won't stop at a million.
Airplane is owned by a LLC, I own nothing of any value beside my house, they can't take your primary domicile in Florida.
Any one that wants a ride assumes the risk. I doubt many have more than that on their car insurance which is much more likely to be in a crash.
Airplane is owned by a LLC, I own nothing of any value beside my house, they can't take your primary domicile in Florida.
Any one that wants a ride assumes the risk. I doubt many have more than that on their car insurance which is much more likely to be in a crash.
Swingwing
Active Member
Bob,
Can you give me the contact info for the right person to contact at Gallager? They are not showing up in my sidebar.
Thanks!
Nick
Draker
Well Known Member
I'm glad you brought this up. I was planning on re-visiting my own insurance limits after exiting Phase 1, and it never occurred to me to increase the passenger liability limit. It makes a lot of sense.
For physical damage, I am starting to believe more and more that there's no way I could replace my -7A for $100K, especially with engine prices skyrocketing in the past few years, so I will probably crank that value up a bit, too.
I heartily endorse Gallagher. The policy they found for me for Phase 1 is also shockingly cheap, given I had ~100 hours total and <10 in an RV when they wrote it.
Swingwing
Active Member
To build an RV-7; new IO-360, IFR glass panel and CS prop at today's prices will cost $170K +/-
MacCool
Well Known Member
I'm not sure that's universally true. Depending on the policy-holder's available financial resources, my attorney friends tell me that settlement for the liability amount is more the norm.
