REFLECTOR: Insurance

[John Abraham]

Typically a policy will spell out what percentage will be a total loss.
Usually 70 or 80%.  Mine is 70%

The policy definition of "Total loss" is deleted and replaced by the
following:

"Total Loss" means any physical damage loss for which the "cost to repair"
will equal or exceed 70% of the Insured

Value of the aircraft as set forth in Item 4 of the Declarations.
Disappearance or theft of the entire aircraft shall be

considered as a total loss.

 

                      John Abraham

Chief Pilot, Executive V.P. Sales and Marketing

         4103

                  200 W. Airport Drive

                  Sebastian, FL 32958

             <http://www.velocityaircraft.com/> www.velocityaircraft.com

                  (P): 772-589-1860

                  (F): 772-589-1893

 

From: reflector-bounces at tvbf.org [mailto:reflector-bounces at tvbf.org] On
Behalf Of Scott Baker
Sent: Friday, January 17, 2014 9:06 AM
To: Velocity Aircraft Owners and Builders list
Subject: Re: REFLECTOR: Insurance

 

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






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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.

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