REFLECTOR:Re: Insurance Woes

Scott Derrick reflector@tvbf.org
Thu, 08 May 2003 07:29:13 -0600


Interesting that your paying more for insurance to build an airplane 
than I am to fly one!

Scott

Brian Michalk wrote:
> Oops, I assumed everyone knew I was trying to get builders insurance.
> 
>  Brian Michalk  <http://www.michalk.com>
> Life is what you make of it ... never wish you had done something.
> Aviator, experimental aircraft builder, motorcyclist, SCUBA diver
> musician, home-brewer, entrepreneur and mostly single
>  
> 
> 
>>-----Original Message-----
>>From: reflector-admin@tvbf.org [mailto:reflector-admin@tvbf.org]On
>>Behalf Of Scott Derrick
>>Sent: Wednesday, May 07, 2003 11:20 PM
>>To: reflector@tvbf.org
>>Subject: Re: REFLECTOR:Re: Insurance Woes
>>
>>
>>So Brian,
>>
>>What kind of coverage is that?  Builders, Non-Flight Hull, Full Hull, 
>>includes liability?
>>
>>Scott
>>
>>
>>Brian Michalk wrote:
>>
>>>I talked to Falcon today.  They quoted me 1.4%.  I told them I know of 
>>>some others that were getting 1%.
>>> 
>>>The tripping point is $90,000 insured value.  Above that limit, you go 
>>>into a different class, and your premiums are higher.
>>> 
>>>Oh, I said.  Well, let's insure it for $90K then.
>>> 
>>>Big difference, $900 and $1400.
>>> 
>>>
>>> Brian Michalk  <http://www.michalk.com <http://www.michalk.com/>>
>>>Life is what you make of it ... never wish you had done something.
>>>Aviator, experimental aircraft builder, motorcyclist, SCUBA diver
>>>musician, home-brewer, entrepreneur and mostly single
>>> 
>>>
>>>    -----Original Message-----
>>>    From: John Tvedte [mailto:reflector-admin@tvbf.org]On Behalf Of John
>>>    Tvedte
>>>    Sent: Wednesday, May 07, 2003 9:12 PM
>>>    To: reflector@tvbf.org
>>>    Subject: RE: REFLECTOR:Re: Insurance Woes
>>>
>>>    Just wondering how to get the 0.6% non-flight - I called Falcon for
>>>    builders insurance and they are quoting 1% per thousand  - 85K hull
>>>    would run 850 as an example.
>>>     
>>>    I think Andy mentioned $550/year - what "value"?
>>>     
>>>    Bob mentioned 60K for 600 - which is 1%.
>>>     
>>>    BTW- I was not asked if I had an instrument rating, total hours of
>>>    PIC time, or any other pilot related questions.....
>>>     
>>>    Although second hand, a friend mentioned that he was checking out
>>>    how much a 100K Piper Commanche would cost him yearly to insure -
>>>    $4500 - or 4.5%
>>>     
>>>     
>>>     
>>>
>>>        -----Original Message-----
>>>        From: Scott Derrick [mailto:scott@tnstaafl.net]
>>>        Sent: Wed 5/7/2003 2:45 PM
>>>        To: reflector@tvbf.org
>>>        Cc:
>>>        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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>>
>>
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> 
> 
> 
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