Builder's Insurance

[N941WR]

(I couldn't find the old thread so I thought I would start a new one.)

FYI, I just renewed my homeowner's insurance policy with Liberty Mutual and once again asked them if they would cover the airplane in my basement.

They said they would under the general contents clause and suggested I not list it as a separate line item. God forbid I ever need to place a claim against it but they will cover it if I can prove the contents of the basement, including the tools. It cost me an extra $40 a year to up my contents insurance another $30K.

Once I move it out of the house the project is no longer insured but as long as it is there and is not an airplane it is covered. Remember, until you have that little piece of paper from the FAA it is not an airplane. A fine point to be sure but legal it is not an airplane any more than an RC model is an airplane.

Before buying insurance for your project, check your homeowner's policy and verify the fine points.

[szicree]

I like what you're saying and I want in. My builder's risk policy just expired and the renewal rate is sky high. I am concerned though about what you would say to the insurance adjuster if he says it IS an airplane and refuses to pay a claim. The FAA will not be the one deciding whether the claim gets paid, the insurer will.


Steve Zicree
RV4

[Captain_John]

Bill, the best info I recall from the old thread was to get it in writing.

I think they were lying to you. Yes, God forbid you make a claim.

That thread prompted me to read my policy. It clearly listed my airplane project as "not covered". I have Commerce Insurance. I am not going to think about covering it until the finish kit and engine get here. It just seems practical to me.

CJ

[N941WR]

Originally Posted by Captain_John

That thread prompted me to read my policy. It clearly listed my airplane project as "not covered". I have Commerce Insurance. I am not going to think about covering it until the finish kit and engine get here. It just seems practical to me.

CJ

CJ,

I'll go back and triple check my policy but the point is, the chunks of aluminum in my basement are not an airplane until I get the FAA paper work and that won't be for a year or two and by then it will be at the airport covered under a different policy. Now I don't expect to get paid for my time if something does happen but at least I know all my cool new tools will be covered along with all the other instruments and "stuff".

Heck, even Van's once told me they don?t sell airplanes. All they do is sell aluminum and plastic, what you do with those things is up to you. I'm not so sure that would hold up in court but...

The best insurance is to be careful. Don't leave oily rags laying stacked up, watch those chemicals and flames (My gas furnace and hot water heaters are in the garage, not the basement where I work.), don't store gasoline in your shop, strategically locate a couple of ABC rated fire extinguishers throughout your shop, limit how many things you plug into an outlet and run at the same time, watch those electric heaters now that winter is on the way, etc.

[RV_7A]

Bill- PM sent

[jimpappas]

Guys,

I have been consistent about this.

GET IT IN WRITING!!

I hope it's for real but get something from the Insurance company or the Agent, on letterhead and signed, that specifically says your "aircraft" or "aluminum" kit is specifically covered so if it turns out later you get a denial letter you will have proof they said you were and guys like Steve Ashby (a great aviation attorney and RV owner) can go after them for you if need be.

I have been in this business 20 years and would love to find that deal for my kit as well but I haven't so if you have get it in writing then let us all know so we can get it too.

This truly is a buyer beware situation. Better safe than sorry because insurance is mearly a contract to pay at time of claim subject to a lot of legal language most of which says that the Agent does not have the right to bind the company to anything they don't do by contract.

That's why if you are told you are and you ask for it in writing you will get one of two responses usually.

One - a letter that will hold up if you have a claim, or

Two - an Agent or Company that suddenly apologizes for it's error and says no we don't want to put that in writing but you are covered, trust me

Please guys, be careful in this area, you don't have to buy from me or anyone if you feel safe then stick with whatever makes you have that feeling just keep good records so when you are gone your family doesn't have your word (and you may be gone remember) against an Insurance agent or companies.

I usually get my fellow Insurance people mad at me for saying this stuff but only if they aren't willing to put it in writing which usually makes me wonder why?

Fly safe, buy what you need and not a dime more if that suits you and that's all that matters.