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Insurance while building

S

s4lorne

Member
Hi All-

I am getting to the point where the amount of money that I have invested is getting fairly large (entire kit + brand new IO-390, etc.). I thought I was covered under my homeowners but when I asked yesterday I was told that I wasn't. I now am moving the aircraft to someone elses location (bigger better shop) to continue the building process.

What have you all done to insure your projects while in this stage?

Thanks in advance-

Dan
 
Dan,

I had builders insurance through Nation Air. I think it was about $500/year and I believe it covered tools as well. Not a bad deal considering I had about $60,000 worth of stuff in my garage at one time.
 
I insure through Nationair. Those guys are awesome.

Oh yeah....hopefully your homeowner's insurance won't get cancelled.

Just a note: NEVER, EVER call your insurance company for anything unless you really intend to file a claim. The insurance companies have been known to log the subject matter of hypothetical questions into a database called A+ (there's another database out there that I can't recall the name of right now). The database is mostly just claim history but it also contains random subject matter related to hypothetical questions you ask the company. Oh yeah...it also contains information basically identical to your PERSONAL credit report (account balances, names of banks, etc). People with a lower score get higher rates. It matters not that you never gave your consent to have your personal financial information used in such a way.
 
Falcon Insurance sourced me through Global Aerospace. They charge 1% of the insured amount with a minimum of $400.

Jekyll
 
Jamie said:
I insure through Nationair. Those guys are awesome.

Oh yeah....hopefully your homeowner's insurance won't get cancelled.

Just a note: NEVER, EVER call your insurance company for anything unless you really intend to file a claim.
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I have only heard of issues involving people making a claim and finding out somethings not covered (or covered enough), then deciding NOT to file the claim and being hit with higher rates. I think if you have a broker you should be able to ask them most questions without having any problems/hikes. If I inquire about adding a car (or a boat or motorcycle for that matter) to my policy I would not expect them to jack up my homeowners insurance just because I made a phone call to them. I guess come December when mine is up for renewal I'll find out if I'm wrong.
 
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briand said:
I would not expect them to jack up my homeowners insurance just because I made a phone call to them. I guess come December when mine is up for renewal I'll find out if I'm wrong.
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I think most state insurance boards would take issue with raising someone's rates because of a simple inquiry. I'd call the insurance board before talking to the isurance company.
 
I got a builder's policy with USAIG through USAA as the agent. I ended up with pretty good coverage that even covers my tools (if I choose to included them in the value insured), and $15/hr for my time if I log my construction time. Even the guys at Nationair were impressed with the coverage when I called them to compare.

On a side note: A few weeks ago, I got a letter from USAA saying my policy will now be serviced through the Falcon Agency, but still under some USAA program. Confusing... we will just have to see how it works out.
 
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Builders insurance

Got my coverage through AVEMCO.
Very resonable and they also cover the labor at $15.00 per hour.
 
Thanks All-

Hi all- thanks for all of the responses. I will look into all of them tomorrow. I didn't even think about the labor.

Just to make any of you feel better about the insurance thing. My stepmother works for the same company that I am insured through, and it is her that I asked about the coverage so I think I should be alright as far as keeping my coverage.

Thanks again-

Dan
 
Avsure (New Zealand)

Here in NZ (for those of us down this way) I have been quoted 1.5% of the declared value during construction by Avsure. This also attracts a NZ$1000 excess Haven't done it yet, but may well look at it after I purchase the fuselage kit. Flight risks/hull are expected to be around 3.5% plus liabilities. Based on NZ$150,000 an annual premium of around NZ$5550. Yikes!
 
One more thing...

I had a thought and wanted to clarify something I said earlier with regards to the $15/hour for my time.

It has been almost a year since I purchased the policy, and IIRC, when I established the $ limit on the policy I needed to include the value of the parts, value of the tools, PLUS the value of my time. In other words...

PARTS + TOOLS + (HOURS x $15) = INSURED VALUE​

My point is, don't assume that they cover your time for free (if they offer the program, and some don't). You will most likely need to include it in your value calculations, because they typically will not cover you for anything over your stated insured value.

Oh yea, one more thing...
As you shop around, ask if parts in multiple locations will be covered. A local guy building a Lancair found that avionics stored at his house, while the airplane was being built at the hangar would not have been covered.

Ok, I am done now. :D
 
Email Jim at http://www.pappasinsurance.com/ although I haven't bought from him (yet) he has been very gracious in his answers to my questions. I get the feeling that if he can't get you the best coverage for your needs, he'll tell you.

Nice guy and one of us too boot.
 
AVEMCO ROCKS

I use Avemco. I'm paying about $260.00 for 20K of coverage (Emp, wings, tools, time). As stated earlier, they cover labor at $15.00 per documented hour. Their agent took my info over the phone and my policy was in effect when I hung up. No muss, no fuss, and they beat the AIG and NationAir quotes that I had been given.
 
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JoeG said:
I use Avemco. I'm paying about $260.00 for 20K of coverage (Emp, wings, tools, time).
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After being told the renewal premium for my USAIG builder's policy, I am calling around for quotes. I just got off the phone with AVEMCO and they quoted $590 for 14K of coverage (which is still less than I need). What's going on there... rates going up?
 
RV7Factory said:
After being told the renewal premium for my USAIG builder's policy, I am calling around for quotes. I just got off the phone with AVEMCO and they quoted $590 for 14K of coverage (which is still less than I need). What's going on there... rates going up?
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Sorry for the premature post... AVEMCO just called me, they made a small mistake on the quote, they accidentally included in-flight coverage. The real quote was the $200-300 range... I feel much better now! :)
 
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Liability

Hey Brad,

Are they including liability in the quote? Just curious. I got a couple of quotes last winter and the liability portion was a big chunk of the premium.
Maybe they figured a part could fall on someone's foot.
Now, if they covered me getting hurt using a fly cutter.....oh, wait. Too late, did that last night :eek: .
 
Jim, IIRC the original $590, which actually turned out to be $695 (don't ask) included their base liability coverage of 50/100/100. We carry $1M liability umbrella at the house, so I dropped off the liability and ended up with $334 for 25K in coverage (or $250 for 14K). The base liability would have added $140 on top of that.

When talking to my current agent about liabilty, I was given a quote of about $250-300 for the $1M liabilty the city requires for the hangar.

Fly cutter... ack! I hate that thing. Be careful and get well.
 
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I insure through 'Nation Air' 877-475-5860. The policy is specifically set up for builders, no liability or medical coverage. I thought pretty much everyone used this company / policy. Anyway, the premium is simply $1.00 per $100.00. I pay $400 per year for $40,000 coverage.

J.C.
 
I talked to the nice folks at Nation Air, and while yes they are VERY helpful and VERY knowledgeable, the coverage they offered me did cover my logged construction time. If that isn't important for you then great, but for me, I wanted to be sure my time was covered. If anything were to happen, I wouldn't have to start from scratch, I could order the QB. :D

Please don't take my word for it, if considering Nation Air verify this with them yourself.
 
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reviving the thread

I was in the shop today and kinda noticed I have a fair amount of loot. I am hopeful to have the engine here in the next month also. So I got thinking about insurance.

Let's hear what others are doing/paying for builders insurance.
 
A friend of mine writes it...

...in Sandersville, Ga. Kaolin Aviation (478 232-9560). Ray Lawrence has built RV-4, 6,-6A, -7, -7A -9A and helped complete another dozen. Great guy and fellow RV-er.

Regards,
 
re: don't have it

hydroguy2 said:
I was in the shop today and kinda noticed I have a fair amount of loot. I am hopeful to have the engine here in the next month also. So I got thinking about insurance.

Let's hear what others are doing/paying for builders insurance.
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Never had it. Never considered it.

Marshall Alexander
RV10 N781DM
 
insurance

John,

Thanks for the endorsement but I got out of selling the insurance a year or two ago and bought a flying 6A cuz it's more fun this way.

Since I USED to sell it I know what the "rules" are enough that all the carriers are close but slightly different in coverages.

Some folks get nothing, some want it all covered. It's like primer and women, all personal preference. It's really about what makes you sleep ok at night.

I didn't have any when I was building but all I had was the tail kit so my investment was small. When I got the next kit I would have got it because then I would freak if I lost it all.

Your labor is covered if you include it usually around the $15hr range said before. Your homeowners WILL NOT COVER IT! DON'T ASK but if you do and someone says it is _ GET IT IN WRITING for when the claim is denied then you can go after the agent or whowever gave you the bad advice.

Folks, the most important thing is value it as close as you think you have into it including your time IF you want insurance and make that decision.

If you don't want it, don't get it. If you don't and then have an issue at least YOU made the call not to cover it and not someone else.

Nobody is right and nobody is wrong as long as you do what is right for YOU:cool:
 
re: good advise

I like Jim's approach. Sounds like he was in it for long time.:)

Marshall Alexander
RV10 N781DM
 
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