Builder"s Insurance

[BucF16]

Hi All. It is time to renew my builders insurance. My agent used Global as (I think) does Falcon. Their rates almost doubled, to $470 per year

Who do you all use? Not the agent but the underwriter. Also for those of you all that are flying, who is your underwriter, and at what cost. My Cub is $710 at a hall of $35K

Thanks!
Bruce

[GreggC]

Yeah,
Im gonna need someone to explain Builders Insurance to me.

[danerazz]

I WAS using avemco, but have let it lapse (probably not smart). I think it was about $250/yr, but probably went up with the others.

Here is the gist of builder’s insurance: your homeowner’s insurance most likely will not cover aircraft parts (or aircraft). If your house/garage/barn burns down, and your $30k rotax or $30k kit, or $25k instrument panel is lost, you get to buy them again. Kit insurance insures the kit and expensive stuff before it flies. It is usually significantly cheaper than you think.

Bruce, they must think you are high risk!

[BucF16]

Man I'm Pissed!!! I had a full page to respond to Gregg. Lost to cyberspace

Here is a short version: Your home owners policy will cover all items in your dwellings up to the amount of $2000. So, I have riders from USAA for; 2 Welders, 2 Quads, 2 antique cars (inherited) and 2 Tractors. all these at minimal cost. BUT USAA WILL Not cover a aircraft build.


So there's the rub. If my shop burns down Im out only the highlander Now totaling $50,000 an counting!!!

Cheers,
Bruce

[SheepdogRD]

One note about Builder's Insurance: I was told that, in the event of a loss, we only get reimbursed for materials for which we can show receipts. I decided I'd be wise to store my receipts somewhere other than the shop, so they aren't lost with the plane. They're still in the shop, so far, but I've ordered a fire-resistant records safe.

[BucF16]

Hi Richard, I have most of my purchases on line. So there is a record either on email or Carbonite. I have very few purchases locally.

Thanks for responding! What is your insurance cost, if you don't mind?

Cheers,
Bruce

[SheepdogRD]

I just started exploring Builder's Insurance, and haven't bought any, yet. I need to add up the receipts so I know how much I have to insure before I ask for quotes.

I'm with USAA, too, and I got the same answer from them on aircraft projects. No explanation why; just "that's the policy". Cars and boats are fine; not airplanes. Grumble...

[AV8R Paul]

I never had any builders insurance. Probably not a good idea, but I also don’t have life insurance.

[SheepdogRD]

I never had any builders insurance...

But I'd suspect that Chris Wallen had his place -- and its contents -- insured, so you were covered. And your exposure to loss during the build was only for a few months.

[AV8R Paul]

I don’t know if Chris had insurance or not. I just don’t think Statistically there is enough risk to justify their Outrageous cost for Builders Insurance.
If you think builders insurance is high wait until you insure your plane. I’ve never had an accident, and never maid a claim, I have about 750 hours, and the insurance cost to insure the SuperSTOL is outrageous.

[BucF16]

Hi Paul, and All; (That rhymes!), I chose NOT to renew my Builder's insurance. Too MUCH! So, I'm self insured for a fire or Tornado taking out my Barn.

I would like to hear what all of you that have, Just Aircraft products, are paying for Hall and Liability in flight insurance; (hopefully, for me, next summer). My Cherokee and Cub J3 are $1280 total, per year, together. My Experience luckily, is extensive, BUT, my Owner partner in all these aircraft is a 1000 hour commercial, instrument, Multi, and 200 hour tailwheel pilot.

So Please, Chime in on what you are all paying for flight insurance.

Thanks!
Bruce

[gkremers]

Bruce,
When I finished the Highlander in 2014 I had zero tail wheel time. Total flight time was over 3,000 hours, instrument rated. I was paying approx $850 per year on an RV7A I built 9 years earlier (hull value $80,000). The Highlander cost $1,500 the first year ($60,000 Hull). The second year it came down to $1,200. Then I went and put amphibious floats on it, again with a new rating and zero seaplane experience. So now I have a policy that covers me for 8 months of float flying and 4 months on wheels and skis. The first year with floats was appox $2,000 (changed the hull to $90,000 to cover the floats), dropped to $1,800 the second year. The issue with floats is if you have a claim it's typically a total loss (flipped it over or something like that).

I think guys with a bunch of tailwheel time would get a better rate. My policy has a zero deductible, both in motion and not in motion.

Gary

[Tralika]

You guys don't know how good you've got it. I'm in Alaska where there are only a couple of companies offering aircraft insurance so your rates sound pretty reasonable to me. When I was building I checked into builders insurance. The only quote I received was for full hull coverage as if I were flying the plane. When I was ready to fly the plane I received one quote, hull $50K coverage with $5k deductible and liability was over $3000! I'm a 4500 hour pilot with over $2000 hours of tailwheel, Commercial, SEL, SES MEL, Glider, CFI/CFII with no accidents or violations. I flew all summer without insurance and completed my Phase 1. I'll price insurance again before I start flying next spring. It might be cheaper now with the Phase 1 complete and me having some time in the plane but I'm not hopeful. Insurance is expensive in Alaska because we operate off airport and when someone breaks a plane the insurance company has to hire a helicopter to recover it. If it's not too remote that usually comes to around $10k. I'm hoping I can at least get liability so I can fly a passenger other than my wife. With a $5k deductible on hull insurance I figure if I survive the crash I can probably repair the plane for close to that in most cases. Of course I'll have to patch it up and fly it to the nearest road to avoid the helicopter recovery.

[danerazz]

Of course I'll have to patch it up and fly it to the nearest road to avoid the helicopter recovery.

Just always land on roads, then you’ll never need a helicopter. Or, better yet, get a helicopter as a second aircraft...though the insurance on that might be a little pricey.