REFLECTOR: Insurance - OUCH!

Tue May 16 13:10:47 CDT 2006

Guys,

Don't forget that you would probably want non-motion ground coverage which
adds to the total insurance bill (for theft, if someone hits your plane
while parked, weather beats it up, etc.)
I understand that liability runs about $1000-$1200 for $1M coverage plus
non-motion ground coverage is around 1.5% of the hull value.  So for me,
liability and 0 deductible ground would have been around $3800 ($175K*1.5% +
1200).

For some of you guys the insurance cost is not bad as you only have hull
insurance for less than $100K.  I would think that most Velos out there
(especially XLs) are closer to $200K.

As some of you probably know, I did have an engine failure (due to the
Lycoming mechancial fuel pump going out - which an AD appeared for
replacement 2 months after my incident) and had to land in a dry riverbed. I
did make a normal landing but the rollout over the river rock broke the
wheel pants and shook the plane quite a bit. My only damage was - 
1) destroyed wheel pants,
2) gear leg needed to be sanded down for inspection - had stress cracks that
were only paint deep
3) bent main gear bolt & bushing - replaced

I did all of the repairs and you would think that it should have been pretty
inexpensive.  Well, it wasn't.  Since it costs more to x-ray parts for
stress than it does to replace with new, I had to put new -
1) wheels (which were inspected and failed due to stress)
2) wheel discs (which were deformed due to overheating - needed to stop
right away)
3) tires (A&P recommeneded to be replaced when they endure that type of
stress)
4) axles
5) brake pads - cracked
6) engine mount bolts, axle bolts, wing bolts, landing gear bolts
7) main gear cuffs
8) stainless steel firewall protection (I had to remove the engine and
stainless steel firewall for firewall inspection)

Plus new paint for new wheel pants and new paint for gear legs

The entire claim for parts and (cheap) labor was just under $12K - which
according to my insurance company does NOT affect my insurance rate (if
under $12K it's a gimme).

Keep in mind that I did not damage the $12,000 M-T prop.  You can see where
I'm going on the insurance issue - A high deductible is worthless unless
you're concerned about the financial future of who you're leaving behind AND
it doesn't take much damage to be an expensive repair.

Kevin

  _____  

From: reflector-bounces at tvbf.org [mailto:reflector-bounces at tvbf.org] On
Behalf Of Robin Wesley Ream
Sent: Tuesday, May 16, 2006 10:24 AM
To: Velocity Aircraft Owners and Builders list
Subject: Re: REFLECTOR: Insurance - OUCH!

Funny you should say that Alex, because that's exactly word for word the
advice I got from my attorney about the matter when I was looking at
alternatives to the insurance dilemma.

----- Original Message ----- 
From: Alex Balic <mailto:alex157 at pwhome.com>  
To: 'Velocity Aircraft Owners and Builders  <mailto:reflector at tvbf.org>
list' 
Sent: Tuesday, May 16, 2006 11:37 AM
Subject: RE: REFLECTOR: Insurance - OUCH!

Yea, you know what- I am just going to have liability.   For 4-5k/year, I
can do a lot of fixing,  and if is a total loss, I probably won't be in any
condition to care too much about replacement anyway.

  _____  

From: reflector-bounces at tvbf.org [mailto:reflector-bounces at tvbf.org] On
Behalf Of Velocity_AZ
Sent: Monday, May 15, 2006 3:36 PM
To: 'Velocity Aircraft Owners and Builders list'
Subject: REFLECTOR: Insurance - OUCH!

Hey guys - 

I just got my insurance renewal and it's painful - 

I've got 500+ total hours, 230 hrs in type & an instrument rating. I have a
173 Fixed Gear and I am the only one listed as the pilot.

Was paying $5000/year for $175,000 hull insurance, $1M liability, $100K per
passenger - $0 DEDUCTIBLES (Global Aerospace is the underwriter through
Falcon Insurance).

I've always felt the the $0 deductible is extremely important if you want
hull insurance.  Should more than $17,500 worth of damage occur to my Velo,
chances are that I wouldn't have to worry about what I'd be collecting
beyond that (since you can't take it with you!).

Renewal - $5650/year (same coverage as above) or

Renewal - $5123/year - $17,500 deductible

I also learned that AIG will only insure a Velocity with up to $100,000 for
hull insurance.

I also learned that my current underwriter, Global Aerospace (supposedly the
best coverage available), is not that interested in Velocitys anymore and,
if insurance was possible, a min. of 750 hours would be required.

What have you guys been finding?

Kevin

  _____  

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