Are You Increasing Your Hull Value?

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Papa Pilot

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Andy
I am up for renewal, and I asked my broker to double my hull value (100% increase). We both were shocked to learn the insurance companies had no issues with doubling hull coverage. Rate only went up $65.

What's been your experience? Are you increasing your hull value when you renew? If so, what by what percentage and what kind of response are you getting?
 
We’ve been insuring to market value all along. I’d rather go naked than be underinsured.
 
About 15 years ago some insurers were capping aircraft insurable values, with all the toys people are installing today that has gone away.
 
Papa Pilot said:
I am up for renewal, and I asked my broker to double my hull value (100% increase). We both were shocked to learn the insurance companies had no issues with doubling hull coverage. Rate only went up $65.

What's been your experience? Are you increasing your hull value when you renew? If so, what by what percentage and what kind of response are you getting?
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Depends on hull value, doubling value from $20,000 to $40000 is no issue, doubling from $200,000 to $400,000 would get a different response.
 
Nobody would insure me for more than $200k on an rv10. Try finding an rv10 for 200k these days.
 
I insure mine for what it would cost to replace and have increased the hull value almost every year.
 
I increased my 2003 DA40 from $150K to $200K, which is still below what AOPA Ref thinks its worth. Cost about $100 extra.
 
I increased it slightly but have kept it at what I think is replacement cost. Interesting response from Avemco this year (who was 3X everyone else) was that they wanted it even higher. They had a number they came up with as value and told me it couldn’t be less than that. I asked the agent to find me a buyer at that price because I would sell immediately.
 
aggie06 said:
I increased it slightly but have kept it at what I think is replacement cost. Interesting response from Avemco this year (who was 3X everyone else) was that they wanted it even higher. They had a number they came up with as value and told me it couldn’t be less than that. I asked the agent to find me a buyer at that price because I would sell immediately.
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Take the insurance, remove all the good stuff, and then run into it with your truck.
 
I don't wait for renewal. I track that market and make sure I'm adequately insured. That is until insurance capped me...
 
DA40FAN said:
I increased my 2003 DA40 from $150K to $200K, which is still below what AOPA Ref thinks its worth. Cost about $100 extra.
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Not to change the subject but I used the AOPA value calculator and they gave me a value approx. $35-40k below what ones just like it are selling for right now (1977 Archer II PA28-181). It's got a 1 year old G-500 autopilot, dual G5's, 215 smoh, and approx 2300 total hours. They knocked off $10,000 because I said the paint was average. Said it was worth only $110k. I'm not trying to sell it but I believe ones like it are currently selling in the $145-150k range. o_O
 
Archer Jack said:
Not to change the subject but I used the AOPA value calculator and they gave me a value approx. $35-40k below what ones just like it are selling for right now (1977 Archer II PA28-181). It's got a 1 year old G-500 autopilot, dual G5's, 215 smoh, and approx 2300 total hours. They knocked off $10,000 because I said the paint was average. Said it was worth only $110k. I'm not trying to sell it but I believe ones like it are currently selling in the $145-150k range. o_O
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All aircraft value calculators significantly lag the market and are complete BS. If you tried to negotiate for a plane by bringing up VREF you'd be laughed out of the room and the 20 people in line behind you wouldn't mind a bit.
 
I will be increasing my coverage at renewal. I have added some new avionics and like to stay close to replacement value.
 
About 3 years ago I upped the hull value from $85k to $95k. The insurance rate went up around $300. I haven't adjusted it since.
 
My insurer told me I was underinsured. Adding $75K brought me up to Vref for $600 per year. Insuring in Alaska is famously expensive. I thought the price was more than fair.
 
I need to. Haven't yet because the premium is painful as it is. I'm going to hit 500tt and 250 in type in the next few weeks, then doing an autopilot in October, so I figure I'll raise it then.

I inquired about raising it a few months ago, but they would only go up about 10k from where I was without pictures. I'd guess I'm about 50k underinsured as it stands today. Seems like the top is in though, and prices are starting to soften a bit.
 
On our Club 2008 NAvIII 172, we went from about $180K to $330K and the insurance went only a couple of hundred $$. It was a no brainer last year when we looked at the replacement costs and realized we wouldn't come close to a replacement in the event of a total loss.
 
Pinecone said:
You don't think that the insurance company will notice?
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They will, and when they do, he won't need the truck or the plane in cell he'll be in.
 
Good lord. Most humans are capable of determining when someone is not being literal.
 
And many of playing along :)
 
It’s entertaining when:
Your insurance lapses Sunday at midnight.
Monday at 0800 CDT you get on the phone with your agent to bind up coverage, but also ask for the hull value increase that you requested when you submitted paperwork. They bind coverage at the old rate, with the promise to talk to the underwriter.
Monday at 1050 CDT you get on the phone with your agent to tell them the airplane was wrecked by a storm. Said storm dismantled the hangar that the airplane was put into for maintenance.
Monday at 1101 CDT the your agent calls the underwriter, whose office just opened, to inform them of the above.

For some reason, the underwriter pulled an adjuster off of another job to get there ASAP so he could determine things happened in the stated order.

Woulda’ been really traumatic had I not been hiding under the plow truck in the back of the hangar when my airplane was wrecked.:eek:
 
My guys went up, but certainly not double. Didn't affect the premium any. Thankfully I'll get lots back after I sell the aircraft.
 
I increased my hull from $95K to $110K. The premium went up ~ $100.00 from two years ago...
 
Don’t underinsured your aircraft! Aircraft insured for 50k. Accident does 20k in damage. Insurance totals aircraft and pays you 50k. They now own your aircraft.
 
Most times, it takes damage equal to 70% of the insured value to total.

So you insure for $100,000. Plane is worth $200,000. Mishap causes $75,000 of damage, they hand you a check for $100,000 and take the plane and sell for salvage.

You have $100,000, trying to replace you $200,000 airplane.
 
I raised my hill value last year, from $120000 to 150000. Which is still probably not high enough. Every $10000 in increase was another $100 in premium.
Just got my renewal last week, went up $200 with no change in coverage. But, in the last year I got a commercial sel, and accrued another 160 hours or so.
Current policy is $2700, 1953 C180
 
Up from $115k to $185k. Might need to raise it more after looking at classifieds…
 
After the market crash in 2008 aircraft values dropped - some as much as 50%. Over the last 2 years flight schools have bene gobbling up single engine trainers. Planes like Cessna 172s have at least doubled in the last year. Other small singles have also increased in value due to the low supply of trainers. If your insurance agent doesn't have one, ask them to ask the underwriter what the current Bluebook value for aircraft type is and how much it increased since last year. Most underwriters should be happy to increase your aircraft value since it's usually more premium for them.
 
I did a panel upgrade to the tune of 75 AMU's 2 years ago and when I asked the insurance company to increase my coverage, they promptly refused. I had to find another company and when I did, they asked for the invoices for the new avionics before they would bind me. Given the rising cost of AC, I shudder to think what will transpire when I call them and ask to increase it again.
 
Papa Pilot said:
I am up for renewal, and I asked my broker to double my hull value (100% increase). We both were shocked to learn the insurance companies had no issues with doubling hull coverage. Rate only went up $65.

What's been your experience? Are you increasing your hull value when you renew? If so, what by what percentage and what kind of response are you getting?
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I asked to raise my hull value on a 172 this year, it was not by much only 20K. I am afraid I am still under insured?
I was worried because it took almost a month to get a quote back but it did come yesterday. It went up $45.00 from $756 to $801 per year which I was OK with. I am a 1200 hr pilot flying about 250 hrs a year instrument rated.I was afraid it was going to be more than that with the way the insurance market has been. My 2 cents.
 
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I have it insured for what I have in it. If I do something that causes me to total an airplane, it's time for me to get out of the air.
 
Pinecone said:
Most times, it takes damage equal to 70% of the insured value to total.

So you insure for $100,000. Plane is worth $200,000. Mishap causes $75,000 of damage, they hand you a check for $100,000 and take the plane and sell for salvage.

You have $100,000, trying to replace you $200,000 airplane.
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Then you buy back the salvaged airplane for pennies on the dollar (because they aren't selling it for $100k )and either have it fixed, or take everything out of the panel and put it in a replacement. That's what a guy at our field did.
 
Does a totaled out plane have a "salvage title", similar to cars?
 
I increased mine from $33k to $38k. Surprised it only increased my premium by a couple dollars a month. Currently paying about $1100 a year.
 
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