REFLECTOR:Re: Insurance Woes

[Chuck Jensen]

Scott,

Thanks for the comments.  Well, if Falcon will provide hull in-flight for
1.6%, then our problems are solved!  I would consider 1.6% a quite
reasonable rate.  Certainly better than the 5% of hull value quoted recently
by Aircraft and Marine.

Regarding the Factory checkout, certainly the initial inspection and
checkout at the Factory is warranted.  For the BFR, it's only an idea that a
CFI with Velocity experience do the check out.  It doesn't have to be at the
Factory but a checkout by a CFI off the street that has little or no
Velocity time is going to be far less valuable than a CFI that routinely
flies in a Velocity.

Regarding the Annuals, after an initial inspection at the Factory, it was
not intended that they necessarily be done at the factory.  Particularly
since some builders feel that the right to do your own inspection is one of
the advantages of being the builder.

In sum, I may well have been under a misconception about the insurance
problem, both cost and accessibility.  Certainly, if Velocity owners can get
hull for 1.6%, the only thing they should ask is "where do I sign."

Thanks for the info.

Chuck

-----Original Message-----
From: reflector-admin@tvbf.org [mailto:reflector-admin@tvbf.org]On
Behalf Of Scott Derrick
Sent: Wednesday, May 07, 2003 3:45 PM
To: reflector@tvbf.org
Subject: Re: REFLECTOR:Re: Insurance Woes


Chuck,

Nice dissertation on many of he ins and outs of aircraft insurance.

My $0.02

> 2.	Premiums:  There's little choice that the premiums start out high;
> in the 4%-5% range.  While high, this is competitive with most current
> commercial rates, if you can get them.  For those that are getting a low
> commercial rate presently, our hats off to you; and we'll see you next
year
> when you come to the Coop hat in hand.  The final premium target would be
> 1%-2%.

No this is not competitive.  Avemco wanted to charge me 5% for hull 
which I found unacceptable.  It would pay anybody to self insure at that 
  cost.  Put the money in a CD and in 10 years you've bought yourself 
another Velocity.

Falcon would charge me 1.7% for a 85K hull value in-flight or 0.6% for 
non-flight.

Unless you can get close to competitive I don't think your going to get 
enough business to make it viable.

> 4.	Pilot Flight Checks:  Absolutely.  Not only for insurance's sake,
> but our own.  Perhaps we'd require the BFR be done with a Velocity
approved
> CFI.  When BFRs were first implement, I was a little skeptical about more
> "big brother."  The reality is, its a very good program.  We all get a
> little complacent and form less than desirable habits.  Relearning once
> every two years is small price to pay to save on insurance and your life.

I don't see any real advantage and would consider this a big negative. 
I can see a factory approved checkout of the plane and pilot for the 
initial policy but after that its a waste.

> 5.	Plane Inspections:  Absolutely.  You and I know our workmanship is
> great but can we trust that other guy.  The Factory and Inspectors know
> every trick, tip and trap associated with the Velocity.  To have a factory
> approved inspection will save insurance claims and lives.

Are you talking a first time inspection or recurring?  Recurring is a 
waste as I said above. There are thousands and thousands of more complex 
aircraft than ours flying that don't require a "Factory" annual for 
insurance.  Neither should ours.


Scott

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