LRingeisen
Well Known Member
This question can be a little tricky. The best way to determine the hull value is to consider what you would pay for an aircraft similar to yours in its current state. There can be serious consequences if the aircraft is not insured at a proper value. Some examples are listed below:
Underinsuring: Let?s say your aircraft is worth $100,000 and you insure it for $60,000. Then you have a prop-strike and some other damage totaling $50,000. This would be a completely repairable situation, however the insurance company would rather total out the aircraft, pay you the $60,000 check, and then sell your aircraft. There is a chance that you could purchase your aircraft back from the insurance company with the intention of repairing it yourself however that wouldn?t leave you with enough claim money to make the necessary repairs. (And most insurance companies do not guarantee the first right of refusal)
Over insuring: Now let?s say your aircraft is worth $100,000 and you insure it for $150,000. Then you have a prop-strike and have significant other damage totaling $90,000. Although you would think your aircraft is totaled and have no desire to fix the pile of scrap, it?s in the insurance companies best interest to write you check for $90,000 to fix it. Because that is more cost effective than paying you the $150,000 check. This particular scenario could also make it much harder to sell the aircraft down the road.
Insurance is meant to put you back financially where you were before the incident happened without bettering yourself. We cannot decide an amount for you so take a look at what some similar models are selling for to give you a good idea of your aircraft?s worth.
Underinsuring: Let?s say your aircraft is worth $100,000 and you insure it for $60,000. Then you have a prop-strike and some other damage totaling $50,000. This would be a completely repairable situation, however the insurance company would rather total out the aircraft, pay you the $60,000 check, and then sell your aircraft. There is a chance that you could purchase your aircraft back from the insurance company with the intention of repairing it yourself however that wouldn?t leave you with enough claim money to make the necessary repairs. (And most insurance companies do not guarantee the first right of refusal)
Over insuring: Now let?s say your aircraft is worth $100,000 and you insure it for $150,000. Then you have a prop-strike and have significant other damage totaling $90,000. Although you would think your aircraft is totaled and have no desire to fix the pile of scrap, it?s in the insurance companies best interest to write you check for $90,000 to fix it. Because that is more cost effective than paying you the $150,000 check. This particular scenario could also make it much harder to sell the aircraft down the road.
Insurance is meant to put you back financially where you were before the incident happened without bettering yourself. We cannot decide an amount for you so take a look at what some similar models are selling for to give you a good idea of your aircraft?s worth.