Is insurance required?

[Ted]

Actuarial's must be very good at their jobs judging by all of the shinny glass buildings the insurance companies occupy. With that said they seem to put a huge amount of value on time in type. Something we should all keep in mind.

That's more or less what my broker said. I asked how my rates would be impacted this year since my past 90 days/past 12 months time was so much lower than it was before. She said that with my total time and time in type it wouldn't really change, and my hull value percentage rate went down just a hair. Total premium increased, but we also increased the hull value to reflect the new engines and new avionics.

 

[wabower]

Nor is complicated arithmetic required to calculate the aircraft damage that can be caused by one tornado system moving through a populated area. The one that got my Mooney also got more than 300 other airplanes in one day. More than 100 of them were on one airport, along with mine.

Actuarial's must be very good at their jobs judging by all of the shinny glass buildings the insurance companies occupy. With that said they seem to put a huge amount of value on time in type. Something we should all keep in mind.

 

[JB1842]

Serious question: How do I insulate my personal assets (cash, real estate) from lawsuit if I crash my airplane into someone's head or property, while also not carrying liability insurance as you suggest?

It is already well established that incorporating the aircraft doesn't do jack to insulate you when you're at the controls of the aircraft, but I'm quite open to other ideas. I still consider the yearly premium for that $1M smooth liability coverage pretty decent protection, but if you think I'm actually harming or attracting harm to my household's financial security by carrying said liability insurance then I'm all open to suggestions.

Umbrella policy

 

[wabower]

Won't cover GA.

Umbrella policy

 

[poadeleted20]

I know of no law or regulation requiring insurance.

I know of quite a few such laws, but they are all related to businesses, not FAR's. For the average owner/pilot, there is no FAA regulation requiring that you carry insurance of any kind, although for commercial operators of aircraft, the FAA does require liability insurance. In addition, states and airports may also require liability insurance for any aircraft based/registered there. For an FBO, there may be also state/local/municipal business laws which require various sorts of insurance.

If you have a note on the plane, it may be required as a condition of your note.

Correct -- although only hull coverage is required, but with the lender as a payee (at least to the extent of the note). They can't stand for you to wreck an uninsured plane and then not have the cash to pay off the note after the securing asset is destroyed.

 

[poadeleted20]

Serious question: How do I insulate my personal assets (cash, real estate) from lawsuit if I crash my airplane into someone's head or property, while also not carrying liability insurance as you suggest?

Well, you can't insulate yourself from a lawsuit with insurance (it won't stop someone from suing), but you can manage the risk of loss with insurance. :wink2: In any event, the answer is basically "only by not flying or owning an airplane".

 

[jbarrass]

Won't cover GA.

Sure does if you don't get a policy with an exclusion. Though most (mine included) have underlying policy requirements that come into play.

That said, aviation liability insurance is dirt cheap. Mine is about $300 per year, just over half the cost of the fuel sitting in my tanks. A good bargain in my opinion.

I also have hull insurance. though I can easily see someone passing on it. It's also cheaper than car insurance in many cases. Insurance actuaries are pretty good at math and fortunately don't seem to read internet forums.

People are constantly confusing liability and hull insurance adding some "interesting" drama....they are very different products.

To the OPs question.

No, the FAA does not require insurance.

But yes, many airports and hangar owners require liability insurance.

And yes, Most creditors require hull insurance if the plane is collateral for a loan.

And it's a pretty good deal too.....

 

[wabower]

Who writes GA umbrella coverage? How is coverage limited by the underlying policy?

Sure does if you don't get a policy with an exclusion. Though most (mine included) have underlying policy requirements that come into play.

That said, aviation liability insurance is dirt cheap. Mine is about $300 per year, just over half the cost of the fuel sitting in my tanks. A good bargain in my opinion.

I also have hull insurance. though I can easily see someone passing on it. It's also cheaper than car insurance in many cases. Insurance actuaries are pretty good at math and fortunately don't seem to read internet forums.

People are constantly confusing liability and hull insurance adding some "interesting" drama....they are very different products.

To the OPs question.

No, the FAA does not require insurance.

But yes, many airports and hangar owners require liability insurance.

And yes, Most creditors require hull insurance if the plane is collateral for a loan.

And it's a pretty good deal too.....

 

[Henning]

Who writes GA umbrella coverage? How is coverage limited by the underlying policy?

Lloyd's will write anything you ask for. Won't necessarily save money over buying multiple specific products, but anything is available.

 

[wabower]

And Met Life will write 10 mil whole life on my 91 y/o MIL with no physical required. She's seriously considering it but needs to come up with the 10.5 mil first-year premium that will convert it to a paid-up policy. i

Lloyd's will write anything you ask for. Won't necessarily save money over buying multiple specific products, but anything is available.

 

[maneth]

In the approximate 12 years of flying I have done I have only had a/c insurance a few years when I elected to allow someone else to use my airplane(s) and split expenses, they paid for the insurance.

When I am the only pilot flying my plane I am 100% self insured. If I crash and walk away I will consider myself lucky and possibly not fly again if I can not fix it. If I do not live, then the plane is worthless, my heirs are covered as I do not own anything. I do not even own the airplane, some corporation owns it. There are no other assets in "risky corp LLC." "safe trust for kids, trust" owns everything else.

The airport I was on for 10 years demanded insurance so I moved to another field for $60 per month less hangar rent. Then the original airport asked me to come back and said they can work around the insurance thing.

One way to ensure your heirs are sued is to have deep pockets unprotected or to have insurance. Ask an attorney.

Last sentence=best advice evah....

Insurance is generally cheaper, depending on how much you have to protect. If you have nothing to lose, don't need a lawyer or insurance. Very few people fall into that category, everyone else who doesn't carry insurance or have a great attorney is rolling the dice.

Better to lose the insurance comp's money than yours.