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Insurance Tips: Aircraft Hull values are on the rise

LRingeisen

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.
 
I tried to up the hull value of my 8 in the fall.

I was told that they don't consider market conditions anymore because of all this madness going on, and instead asked for receipts for all the upgrades I did.
 
I'm more interested in what a $10,000 - $20,000 increase in insured hull value would do to my premium.
 
I can only provide what my hull increase was for my current build "Not in Motion" policy. It went from $450 for $75,000 coverage to $600 for $100,000.
 
I recently increased my hull value from $100k to $150k, my premium went up about $400.
 
moespeeds said:
I tried to up the hull value of my 8 in the fall.

I was told that they don't consider market conditions anymore because of all this madness going on, and instead asked for receipts for all the upgrades I did.
Click to expand...

The hull value is an agreed upon value between you and the insurance company. You should be able to adjust the hull value at any time to match similar aircraft of like kind and quality. It is best for you to keep receipts for your own records, but as long as the request to increase the hull value is within reason, the insurance companies don't usually have a problem making adjustments. That being said if the requested value is above what the insurance companies are allowed to quote then they may ask for justification to prove that value. You may want to reach out to your broker again to discuss this matter.
 
I just increased my hull value $30K and my premium increased around $550. However I also turned 75 and experienced a prop strike at Airventure last July so I assume some of the cost increase reflects those two realities. My carrier is Global through AOPA’s Assured Partners.
 
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