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Desert Rat

Well Known Member
Hey everybody. This has probably been discussed before, but what with the rampant price increases in kits, engines etc. It's probably worth it to think about what your hull value actually is.

I got a builders risk policy a couple of years ago when I started getting some significant value in the project, then upped it when I took delivery of the engine. The renewal notice came yesterday so I got out the calculator and started adding stuff up.

If the hangar caved in tomorrow, I'd be looking at $175,000 to replace the component parts on my almost finished RV7. That's without paint and interior. Holy cow.
 
Type of insurance and value is really dependent on individuals risk assessment and financial position in life.
It may not be about “if my airplane was destroyed will my insurance cover replacement?”
I know folks that carry liability only and do not insure their hobbies. They are “self insured”, and understand the risk involved.
So, yes, if it devasted you and you would
not be able to continue your hobby, it might be time to reassess.
However, your typical carrier has to agree to the value you place on the asset.
 
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Desert Rat said:
Hey everybody. This has probably been discussed before, but what with the rampant price increases in kits, engines etc. It's probably worth it to think about what your hull value actually is.

I got a builders risk policy a couple of years ago when I started getting some significant value in the project, then upped it when I took delivery of the engine. The renewal notice came yesterday so I got out the calculator and started adding stuff up.

If the hangar caved in tomorrow, I'd be looking at $175,000 to replace the component parts on my almost finished RV7. That's without paint and interior. Holy cow.
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I purchased my RV6 for $65k about 18 months ago, and just upped the value to $120k because of this very issue. If something happened to the airplane, it would cost me at least that much to purchase a replacement aircraft.

You don't even have to get into an accident. At my airport, the whole field nearly flooded in the recent rains. I had a hangar on the west end years ago that, to this day, still has a 12 foot high water line inside it from a flood in 2010. I think there have been two hangar fires at the airport in the last year or so, the most recent of which destroyed an entire hangar row. Even if the plane doesn't burn, exposure to the smoke and ash can total it even if it looks fine.

Anyway, just my thoughts on it.

I was surprised that the jump from the old value to the new one only added $100/year to the premium, if I recall correctly.

--Ron
 
I just increased my coverage to $250,000 and it's under builders insurance (RV-14A) nearly completed. Quotes were from $7500. as a flying model and down to $2000. under construction. In 1963 I paid $5.00 to rent a C-150 and $5.00 for instruction. Hello inflation!
 
I have always only insured the hull for the amount I put into it and maintained that dollar figure for the 18 years it has been flying. That takes into the lower value due to wear/tear/hours offset a bit for increases due to inflation. This has kept my insurance under $1000 per year, probably saving me tens of thousands of dollars in premiums. I am getting old enough anyway that if I had a loss I would not replace it.
 
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I just received my renewal quote from Global and it increased $609. However I did increase my hull coverage to $140,000 (to better reflect minimum market value). I’m sure, it also reflects the impact of the claim payout last March from the 2022 AirVenture prop strike ($47K+) that occurred after landing while taxing to parking. Since I’m into my middle 70s I’m just happy Global is still willing to cover me at an affordable price (~ $2400/year).

I know some folks pan hull coverage insurance but if you ever experience a prop strike like I unfortunately did, you'll be glad to have it.
 
ronrapp said:
I purchased my RV6 for $65k about 18 months ago, and just upped the value to $120k because of this very issue. If something happened to the airplane, it would cost me at least that much to purchase a replacement aircraft.

You don't even have to get into an accident. At my airport, the whole field nearly flooded in the recent rains. I had a hangar on the west end years ago that, to this day, still has a 12 foot high water line inside it from a flood in 2010. I think there have been two hangar fires at the airport in the last year or so, the most recent of which destroyed an entire hangar row. Even if the plane doesn't burn, exposure to the smoke and ash can total it even if it looks fine.

Anyway, just my thoughts on it.

I was surprised that the jump from the old value to the new one only added $100/year to the premium, if I recall correctly.

--Ron
Click to expand...

In our area the threat is tornadoes, Limestone county is ground zero for most of the tornadoes that go through north Alabama. We've been fortunate but have had several within a mile or so of the airport. I carry GNIM (ground-not-in-motion) that provides full-time liability coverage but hull coverage only when the RV-6 isn't involved in flight ops. It doesn't cost much more than liability-only but covers the plane if the hangar gets wiped out. My brother's Luscombe was totaled by a tornado while it was in a hangar a few miles away so it can definitely happen. Fortunately he had hull coverage and got a check for full value of the plane.

I've always assumed I would repair the RV-6 if it was involved in a landing mishap, and if anything more significant happened I probably won't be around to worry about repairs. Since the RV is 25 years old (and I'm within sight of being nearly three times as old!) if I bend it badly I might just part it out at this point.
 
I recently raised my hull on my 9A from 125k to 150k, just simply due to the market increasing. Once I finish the -10 I'm building I will probably take the 9A down to liability only, if I wad it up I will still have the -10 to fly.
 
I have always insured my planes only for what I have into them and not for what they are listed for or for what we think they are worth. This helps keep my premiums at about 1/2 of what they would be otherwise. Yes it would cost me money to get back into the game but at my age and all the hassles with TC and the medicals its not likely to happen. At least Id be recovering my cash investment at a minimum and isn't that the whole idea of the insurance?

Anyway I do see the asking prices slipping and notice even on this forum they are not moving near as fast as they were before.

Tim
 
riobison said:
<snip>
Anyway I do see the asking prices slipping and notice even on this forum they are not moving near as fast as they were before.

Tim
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I’m seeing the same - some aircraft not selling for many months - especially the ones with wishful asking prices. Since I’m actively looking, I’m checking all the sites multiple times daily. Definitely a slowdown since this past summer. Several price reductions. A couple that disappeared that I assumed had finally sold popped back up this week - still for sale. Interesting times. (Anyone have a BASIC, O-320 RV-9A - without an ugly paint job for sale - I’m still looking!)
 
Phyrcooler said:
I’m seeing the same - some aircraft not selling for many months - especially the ones with wishful asking prices. Since I’m actively looking, I’m checking all the sites multiple times daily. Definitely a slowdown since this past summer. Several price reductions. A couple that disappeared that I assumed had finally sold popped back up this week - still for sale. Interesting times. (Anyone have a BASIC, O-320 RV-9A - without an ugly paint job for sale - I’m still looking!)
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I noticed the same thing. I find some parallels with what happened to bldg material costs post pandemic. Although I do believe RV values will remain higher than they where before Vans issues, at some point, a new “normal” will set in.
 
riobison said:
I have always insured my planes only for what I have into them and not for what they are listed for or for what we think they are worth. This helps keep my premiums at about 1/2 of what they would be otherwise. Yes it would cost me money to get back into the game but at my age and all the hassles with TC and the medicals its not likely to happen. At least Id be recovering my cash investment at a minimum and isn't that the whole idea of the insurance?

Anyway I do see the asking prices slipping and notice even on this forum they are not moving near as fast as they were before.

Tim
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And they will clean up the crash site................ That's a good thing.
 
I own 4x A/C none are insured, I don’t believe in insurance! 44 years driving planes, haven’t scratched any!
 
Capt said:
I own 4x A/C none are insured, I don’t believe in insurance! 44 years driving planes, haven’t scratched any!
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Some countries have requirements to carry a minimum level of liability insurance, but thankfully it's not that expensive.
 
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