REFLECTOR:More Insurance Woes

[Scott Derrick]

A coop was suggested by Scott Swing last year.  He requested everybody 
who was interested to let him know.  I think only about 4 or 5 of us 
responded.

I think he though that we needed a minimum of 30 to 40 individuals to 
make it work.

Scott

Chuck Jensen wrote:
>  All,
>  
> The seeming endless inconsistencies and disparities of insurance 
> practices are not really incongruent when you consider that "they just 
> make up the rules as they go along."  Honest, no kidding.  Insurance 
> underwriting and the weather have one thing in common; they change 
> daily...and usually for the worse.  As Hytec45 mentioned, the insurance 
> companies took a whippin' on 9/11, and now we're the "whippees." 
>  
> It's so darn complicated, but a Coop for hull insurance that was talked 
> about in the Newsletter really does make good sense.  Hull insurance is 
> a different animal than liability insurance because hull damage is 
> quantifiable and estimable, unlike liability which only stops at the 
> limits of a lawyer's mind.   
>  
> I'm not going to volunteer to set it up, but a non-profit Coop that 
> charged 3-5% of the hull value and rebated the excess over the paid-loss 
> experience (and overhead), could end up providing hull insurance for an 
> effective 1-2% of the hull value.....which is something we could all 
> live with.  The loss experience on the Velocity since the Factory 
> started their Checkout and Aircraft inspection program has improved 
> markedly (at least according to anecdotal comments in the Newsletter).
>  
> If someone is brave enough (ne: stupid enough) to want to think about 
> setting up a Coop, I'd be willing to seriously consider putting in seed 
> money.  I suspect that Velocity would be most helpful in establishing 
> a "relationship" to the factory for continued aircraft inspection and 
> pilot checkouts.  Given the relatively low cost of repairing Velocities 
> compared to Kansas Cans after a fender-bender, there is little reason 
> that hull insurance should be 5% of the value of the plane....when we 
> can even get it.  If I lived in FL close to the Factory, I'd try doing 
> it tomorrow, but I don't, so I won't, but that doesn't mean it's not a 
> good idea for someone else that has time on their hands, is 
> organized, knows Velocities and is hands-on.
>  
> Chuck
>  
>  
> 
>     -----Original Message-----
>     From: reflector-admin@tvbf.org [mailto:reflector-admin@tvbf.org]On
>     Behalf Of Andy Millin
>     Sent: Tuesday, May 06, 2003 3:36 PM
>     To: reflector@tvbf.org
>     Subject: RE: REFLECTOR:More Insurance Woes
> 
>     Bob,
>      
>     Funny, I JUST renewed my "Aircraft Under Construction" with Avemco. 
>     It was $550/yr.
>      
>     Andy
> 
>         -----Original Message-----
>         From: reflector-admin@tvbf.org
>         [mailto:reflector-admin@tvbf.org]On Behalf Of Bob Hugel
>         Sent: Tuesday, May 06, 2003 3:31 PM
>         To: reflector@tvbf.org
>         Subject: RE: REFLECTOR:More Insurance Woes
> 
>         Larry,
>         I called Avemco on Thursday of last week to ask about Builders
>         Insurance.  They told me that they do not insure Velocity Kits
>         because they felt that since they do not insure the plane when
>         it is complete it was not fair to insure the kit.  This seems
>         like a recent change on their part.
>          
>         I was quoted for a $60K replacement cost kit, $600/yr by Falcon
>         on the same day (I'm instrument rated).  Falcon suggested that I
>         call Avemco because they felt that Avemco could do a better
>         price, but as it turns out, they will not bother.
>          
>         Today, I emailed Pam with all the particulars and I'm awaiting a
>         response on price.
>         Bob
> 
>             -----Original Message-----
>             From: reflector-admin@tvbf.org
>             [mailto:reflector-admin@tvbf.org]On Behalf Of Milehitaz@aol.com
>             Sent: Tuesday, May 06, 2003 2:46 PM
>             To: reflector@tvbf.org
>             Subject: Re: REFLECTOR:More Insurance Woes
> 
>             I am using Avemco for builders insurance. It runs me about
>             450 a year. Your right, it's very strange that they will
>             offer me the build Ins, and the cheapest in the biz, but
>             don't want me when it comes time to fly.  Oh well. Best to all,
>             Larry 
>