REFLECTOR: Insurance - OUCH!

Tue May 16 21:18:47 CDT 2006

I only have liability and non-motion. I think +3% for in-motion is a 
rip-off but I realize those who finance their plane don't have an 
option. But if you have enough money to buy a $200K airplane, a $5k 
insurance bill is probably not that big of a deal anyway.

My liability for 4 place Velocity, 1 Million, is $600. Quite a bit less 
than Kevin's $1000-$1200.

I think high deductible is a great deal and a good way to reduce your 
insurance cost. I'm not worried about the fender bender, I'll either fix 
it myself or the other guys insurance will pay for it. I'm worried about 
theft( its totally gone) and fire(its totally gone). Its the 
catastrophic loss where there's nothing to rebuild that needs insured in 
my opinion.

Scott

Velocity_AZ wrote:
> 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 list'
>     <mailto:reflector at tvbf.org>
>     *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>
>     [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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