Shaun Simpkins wrote (in part):
> Insurance for a low-time taildragger pilot with about 10-20 hours in type is
> looking like over $2000/year. Insurance companies are hurting, and they're
> raising their rates. Maybe by the time I finish, they'll go back down again.
One insurance option that saves big $$ is carrying "hull not in
motion," protecting you from hazards you can't control. It doesn't
take much to total any aircraft, maybe especially a composite design
where the insurance co. won't be able to find any shop to give them
quote for repair. When you do total it, and you have "in-motion"
coverage, insurance company takes the aircraft -- you have no choice.
That means you can't say I'll keep her and fix it, just net me out for
the value of the big undamaged stuff like engine and panel items.
The FMV of homebuilts is usually significantly less than the cost to
build. Unless it works different for homebuilts, if you try to to
mitigate the problem and insure it for the higher amount (besides more
$$), insurance co. a) may not let you do that, or b) in event of total
loss, demand an appraisal, thus paying you the lesser amount. Read
the policy very carefully.
I've self-insured in-motion coverage on my AA-5 for 24 years now, past
the hump where the time-value of the savings equals any potential
loss. Except for the cost of the beer I'll be crying into should I
ever prang that baby! Any I get to keep the bird, and part out her
myself (AA-5 parts deserve to sell through Sotheby's).
Regards,
Fred F., A063
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