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Does anyone on the forum have some real-world aircraft insurance expertise?

The last time I spoke with my insurance agent, he said that it was pointless to insure above the value the insurance company estimated, because while it was technically possible to give them more money, they wouldn't pay out anything above the estimate. Is he wrong?

OriensFlight wrote: ↑Thu Jan 06, 2022 10:48 pm Does anyone on the forum have some real-world aircraft insurance expertise?

The last time I spoke with my insurance agent, he said that it was pointless to insure above the value the insurance company estimated, because while it was technically possible to give them more money, they wouldn't pay out anything above the estimate. Is he wrong?

This above is somewhat of a misstatement. Typically a reputable insurance company won't insure the hull for an unreasonably high value in the first place ($10 million for a worn-out C172 ?). I have real-world experience, having had several claims (two total losses and two several multi-$K repairs) and have never had my insurance company limit it to some initial estimate. In the event of a total loss you can expect to receive insured value, in which case the insurance company buys the plane and sells it for salvage. When damage is significantly less than the insured value, they paid the cost of repair + incidental expenses (shipping, ferrying, etc.).

But if you carry hull insurance unreasonably high, they might not total your plane when it should be. If you insure too low, the inverse can happen, they send you a check for the hull amount in exchange for the plane, when it could reasonably be repaired.

I just renewed my insurance which has a “stated value” clause. I provided a comparable from Controller and they were satisfied. The insurance market here is comparatively small though. Dollar for dollar, still cheaper than car insurance.

Normally aviation insurance has an "Agreed Upon Value" for the hull insurance. That is the value that the insured and the insurer agree to and is the hull value in the policy. While there are many insurance brokers there are just a few underwriters (such as AIG) that actually provide the insurance. This is unlike car insurance that typically pays depreciated value and sounds like that is what your agent was referencing. The policy documents are the key, whatever is stated in there is what they will do, that is a legal contract.

Saw this today in my weekly email from Controller. $250K for a 2002 with a timed out engine!

https://www.controller.com/listing/for- ... e-aircraft

A plane at Paine just sold "for asking" according to the broker posting on FATPNW. I think I saw it initially posted for 320k (350k?) and it didn't have WAAS.

It's nuts!

I plan to sell my 2003 DA40-180 this year, I put it on barnstormers.com. I think I must increase the price. PM if anybody like to act as an US Consultant

https://www.controller.com/listing/for- ... e-aircraft

Well this one apparently sold for asking price. No WAAS. No VNAV. I have pretty good insight into consumer spending on luxury goods and there has definitely been a slow down in January. Hard to say whether this is just temporary Omicron or something real.

Thomas wrote: ↑Wed Jan 19, 2022 3:13 pm I plan to sell my 2003 DA40-180 this year, I put it on barnstormers.com. I think I must increase the price. PM if anybody like to act as an US Consultant

Good luck Thomas, I sent you a PM with a few suggestions.

Here is the latest one, almost 9,000 hours, 2250 since major and USAF trainer for $229,000

https://www.controller.com/listing/for- ... e-aircraft