LRingeisen
Well Known Member
Did you know you don’t have to wait until your next insurance renewal to increase the hull value on your aircraft? If you feel that you are under-insured because of the changes in the market, you can contact your insurance agent at any time to get a quote to increase the hull value. If you’re not sure where your hull value should be, try looking at what other similar aircrafts are selling for. Be careful not to over-insure or under-insure the aircraft. The insurance company is going to do what makes the most sense financially in the event of a claim. If you over-insure the plane, the insurance company may decide it best to repair the aircraft instead of totaling it leaving you with an aircraft that has a significant damage history. On the other side if you under-insure it, they could decide to total the aircraft when you want it fixed. At that point, the insurance company would own the salvaged aircraft and you wouldn’t get enough money from the claim to purchase another aircraft of the same like kind and quality. Please reach out to your broker for further guidance or to discuss this topic in more detail.