REFLECTOR: Insurance

[Scott Baker]

On 1/17/2014 8:27 AM, Dick Harpster wrote:
>
> I just got my policy last month from AIG. N585V is an XLFG. Full 
> coverage was $3,269.00. I only put $100,000 on the hull to try to keep 
> the rates down.
>
> Dick Harpster
>
>
>
> _______________________________________________
> To change your email address, visit http://www.tvbf.org/mailman/listinfo/reflector
>
> Visit the gallery!  www.tvbf.org/gallery
> user:pw = tvbf:jamaicangoose
> Check new archives: www.tvbf.org/pipermail
> Check old archives: http://www.tvbf.org/archives/velocity/maillist.html
A note of caution regarding insuring your aircraft for less than its 
fair market value.
It's my understanding that an insurance company, in response to a claim, 
may "total" the aircraft if the repair cost + salvage value = the 
insured value of the aircraft.
Let's say your RG Velocity aircraft has a high dollar instrument panel, 
leather interior, and a constant speed propeller ... and has a current 
value of $150,000.  To save money on insurance costs, you elect to 
purchase $100,000 worth of hull insurance.  You then experience a 
landing accident where the gear and underside of the aircraft is damaged 
and the propeller was destroyed.  Damage estimates for the gear and 
fuselage repair, replacement propeller, and an engine tear down 
inspection come in at $40,000.  The insurance company could conceivably 
elect to 'total' the aircraft, present you with a check for $100,000, 
and take ownership of your damaged Velocity.  The insurance company 
hopes to recover most of this money (over $60,000) through the salvage 
sale of your machine with all of its high dollar equipment - which makes 
they would save money by salvaging the aircraft instead of paying for 
repairs.

Scott B.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://www.tvbf.org/mailman/private/reflector/attachments/20140117/305c2a8e/attachment-0001.html>