REFLECTOR: Insurance while building

[Andy Millin]

Hey Len,
 
Congrats on picking up the kit.  I know you have to be excited.
 
I have my "Aircraft Under Construction" through Avemco.  I do not love
Avemco.  I really can't say that I like Avemco.  But, that could probably be
said of just about the whole insurance industry.
 
I had looked into getting a rider for my homeowner's insurance.  My agent
was pretty good.  He said he would write it, but, he wanted to explain there
may be potential problems.
 
Most underwriters have specific exclusions for aircraft, AND AIRCRAFT PARTS.
My agent knew this was a kit, and was only parts.  He was just warning me.
 
He said he could write the policy, and odds are he would have no problem
getting it approved.  The warning came in regards to the possibility of the
claim.  The policies are not scrutinized nearly as much when they are
written as when you need to collect.
 
His example:  Say there was a fire.  The remains look like aircraft parts.
Might even have looked like an aircraft.  The adjustor may summarily exclude
the plane; even with the specific rider.  He said I would have a 50/50
chance of this.  Odds go even more against my favor as the claimed value
increases.  The insurance company writes it, the underwriter pays it.
 
Then, I could have a fight on my hands.  I appreciated his honesty.
 
Your insurance agent might have different information for you.  When you
ask, be very pointed.  Tell them exactly what it is you are doing.  Under
the radar may get you a policy that will never pay if there is a problem.
 
With Avemco, I know I'm paying more, but I also know that I could collect if
there were a claim.  My Avemco policy costs a little over $1 per $1000 per
year.  I insure for the replacement cost of the kit and engine.  I'll need
to get a different policy when it becomes an airplane.
 
Best,
 
Andy

  _____  

From: reflector-bounces at tvbf.org [mailto:reflector-bounces at tvbf.org] On
Behalf Of len.baxter at gm.com
Sent: Monday, November 20, 2006 9:03 AM
To: Velocity Aircraft Owners and Builders list
Subject: REFLECTOR: Insurance while building



Hi All 

I pick up my kit next week ( XLRG fastbuild ) ......  I was wondering what
is the best way to insure it during transportation and during the building
process?? 

Thanks 


Len Baxter




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