EAA Aircraft Insurance Articles
| Approved Pilots |
| The other day an old friend who I hadn’t spoken to in many years called me out of the blue to ask if I could help him with his airplane insurance. After several minutes of “catching up,” we got down to discussing his airplane and what he needed. I gathered all the pertinent details so I could get the most appropriate insurance coverage for the best possible price. I got the airplane information (a really nice tailwheel airplane), updated pilot experience (he is a professional pilot so he has plenty), home airport details, and any special flying needs, (i.e. ski-plane flying in the winter, travel outside the U.S., etc.). |
| Summer of Fun and Safe Flying |
| Aircraft insurance is certainly a significant part of the cost in owning an airplane. However I believe there are many important values you receive when you buy insurance. Unless you're an aviation insurance person you may not know that much about your insurance coverages and the "fine print." You need insurance, at least liability insurance if you want to go without hull (physical damage) insurance, however how much do you know about the coverages and whether or not you're getting value? |
| Don't Call It A Flying Club |
| I got a call from a pilot who was interested in forming a four-way airplane partnership. When this would-be 25 percent airplane owner explained the ownership plans for the airplane, he kept referring to the group as a "flying club." Finally I said, "Hold it! Please, please, please do not use the term flying club!" |
| Price vs Value |
| Aircraft insurance is certainly a significant part of the cost in owning an airplane. However I believe there are many important values you receive when you buy insurance. Unless you're an aviation insurance person you may not know that much about your insurance coverages and the "fine print." You need insurance, at least liability insurance if you want to go without hull (physical damage) insurance, however how much do you know about the coverages and whether or not you're getting value? |
| Call Before You Buy |
| An EAA member called me the other day asking about insurance for an airplane he planned to buy. This happens all the time-nothing unusual about getting these types of phone calls. However, this particular member was looking at a high-performance, experimental amateur-built seaplane. The member did not have a seaplane rating and, in fact, did not hold a private or commercial pilot's license. Furthermore, the member had already put down several thousand dollars on the aircraft and was committed to make the purchase. |
| Aircraft Hull (Physical Damage) Insurace: You've Got Options |
| Between 60 percent and 80 percent of your overall aircraft insurance premium is for aircraft hull coverage. In fact, you pay more for hull insurance for $30,000 of coverage that for the liability insurance, normally a limit of $1 million combined single limit with $100,000 per passenger. That's simply because the insurance company pays a lot more in hull claims than they pay in liability claims. |
| What Do You Know About Aircraft Liability Insurance? |
| When you buy aircraft insurance did you know you are entering into a legal contract between you and the aircraft insurance company? And that it's the responsibility of your aircraft insurance agent to make sure you are getting the right insurance at the most competitive price? That's why you need to deal with a professional independent agency that specializes in aircraft insurance when you buy aircraft liability insurance. |
| Aircraft Insurance For Student Sport Pilots |
| Since the advent of Sport Pilot/Light Sport Aircraft, we've seen promising growth in all areas of recreational aviation. This is a very good thing; one which we all hoped would happen under these new regulations. The aviation insurance industry has had to adapt to this new community of pilots, aircraft, and commercial operations, and for the most part it has done a admirable job stepping up to make insurance available. |
| Fly-In Flying |
| When you buy aircraft insurance did you know you are entering into a legal contract between you and the aircraft insurance company? And that it's the responsibility of your aircraft insurance agent to make sure you are getting the right insurance at the most competitive price? That's why you need to deal with a professional independent agency that specializes in aircraft insurance when you buy aircraft liability insurance. |
| How The System Works |
| This week I'd like to share with you a (hopefully) simple explanation of the different roles played by insurance agents and insurance companies in an attempt to give some insight into how the aviation insurance system works. |
| Flying As A Sport Pilot |
| Now that the new FAA Rules for sport pilots have been in effect for over a year it's time to squelch some of the rumors going around about sport pilots and aircraft insurance. Here are a few of the FAQs I've received and my answers. |
| Can You Handle An Emergency? |
| In the past week alone, we've seen two outstanding examples of skilled pilots and crewmembers handling in-flight emergencies. A few days ago we watched on live TV as a pilot brought a crippled Beech King Air in for a gear up landing with minimal damage and no injuries. Not long after that we heard about another pilot and crew in a Gulfstream G-V who worked through the challenges of a main gear that would not lower to successfully and safely land the aircraft with all gear down and no damage or injuries. Was this luck? I don't think so. I believe it all comes from one key factor: training. The pilots and crew worked through their situations, employed their training and performed as professionals. |
| Insurance and Tires - What's the Difference? |
| What do insurance and tires have in common? The answer may surprise you. Allow me to share an interesting comparison between two things (insurance and tires), how they are made, distributed, and sold. If I'm successful you'll see there are some common threads between how we end up owning these commodities, who's working for you, where you fit into this mix, and how you can use what you'll read here the next time you buy insurance. |
| 'Going Naked' Not Very Smart of Aircraft Owners |
| Do you know who writes a lot of insurance policies, perhaps more policies than anyone? Nobody! That's right, many people don't buy any insurance on their homebuilt, standard, helicopter or gyro, seaplane, warbird, vintage, or airport. Why? Some say insurance costs too much. Others don't buy insurance because they believe insurance companies will do anything they can to avoid paying claims. But these arguments are not, in fact, fact; they are 100 percent fiction. As an insurance agent working for the airplane or airport owner, it's my job to arrange good insurance that will protect my clients from the risks they are concerned about. |
| Landing ... Just For The Heck Of It! |
| A few years ago, on a typical Wisconsin winter day, a Beech Bonanza was headed from Chicago to Michigan's Upper Peninsula. The wind that day was blowing directly out of the west around 25 kts. It wasn't really gusting so much, rather it was just a steady hard wind that seemed determined to hang in there all day long. |
| No Pre-Flight? Nobody's That Good! |
I took 95 percent of my flight training while attending Southern Illinois University. Southern was a great pace to go to college and their flight training programs were, and still are, outstanding. One day, while I was working on my commercial license, I asked my best friend, who was working on his flight instructor rating, if he wanted to go flying. For the most part I was just building time while practicing chandelles, lazy-8s, and other commercial maneuvers. He said sure and we headed out to the airport.
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| Off-Airport Landings May Cause Unexpected Insurance Claim |
| Aircraft insurance covers all sorts of damage to your aircraft in the event that something unexpected occurs. But what happens if you are forced to make an off-airport landing and, even if your aircraft emerges unscathed, you incur recovery charges to get your aircraft back to the airport? |
| Movin on UP! (Transition Training) |
| The aviation community encourages pilots to sharpen and enhance their flying skills, to explore aviation by learning more. One of the great things about aviation is when we learn something, we generally want to learn more. Whether we are working to obtain a new certificate or rating, or just taking additional training to be a better and safer pilot, we like to be better, and that’s a very good thing. And with the new arena of sport pilot and light-sport aircraft we all have a new opportunity to further advance our aeronautical knowledge. |
| Not My Airplane: Renters (Non-Owned) Insurance |
| Much has been written about non-owned, or renters, insurance. Some of the articles and advertisements hype the possibility of an aircraft owner or their insurance company coming after the renter for damages to the aircraft, injuries, or other property damage. Is this really a risk? Do insurance companies really try to recover their losses? YES. Insurance companies do try to recover their losses whenever they feel they have just cause. Why? Because they have a responsibility to stockholders to be profitable, and so they make sure they don't pay more than they should according to the policies they issue and the circumstances of an accident. Whenever and wherever appropriate they attempt to recover losses from someone else. |
| Accidents Do Happen: Now What? |
No one ever plans to have an accident. So what can you do to prepare for one? Here are four simple things to remember: Take care of immediate medical needs; Gather all the details and information you can; Contact your aircraft insurance company; Secure your aircraft. We will explore these four points in greater detail, however, it is strongly suggested that you pull out your aircraft insurance policy and read the section that explains what to do in the event of an accident.
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| Spring Insurance Tune-Up Time! |
| Depending on where you live, springtime is either just around the corner or already in full bloom. As we in the Great White North eagerly watch the snow piles melt away, folks down south are enjoying the beautiful blooms of flowers and trees. Spring is also when we start doing more flying, which also means getting ourselves and our airplanes ready for the flying season. Because springtime is also when many people buy airplanes, many airplane owners also have their airplane insurance coming due this time of the year. This could be an opportunity for you to re-quote your aircraft insurance and realize some significant savings over your current plan. |
| Question on Project Insurance |
| The other day I received e-mail from an EAA Member with a question about insurance coverage under his homeowner's insurance policy for the airplane project he was building at his home. I want to share his question and my response in hopes that this will perhaps answer the same question other EAA Members might have. |
| From the Insurance Mailbag |
| Every week I receive e-mails and a few telephone calls in response to these “EAA Insurance Tips” articles. Some weeks generate more responses than others, like after the piece titled “Tough Insurance.” For some reason, this one generated a lot of conversation, some positive, some not so positive. Frankly, I’m willing to discuss just about anything pertaining to aircraft insurance and the EAA Aircraft Insurance Plan and perhaps clarify something I’ve written. |
| May I Fly Your Airplane? |
| If you’re like most pilots, you probably don’t plan to have someone else flying your airplane. Most of the pilots I know are pretty particular about their airplanes and letting someone else fly their airplane is out of the question. In fact, I heard one of my friends tell another pilot when asked if he would let someone else fly his airplane, "No, sorry my insurance will not allow other pilots to fly my airplane.” I knew my friend’s aircraft insurance policy because I’m his insurance agent and when I reminded him his insurance policy contained an Open Pilot Warranty, which would allow other pilots to fly his airplane he told me, “look, I’d rather blame my insurance company than tell a pilot friend that I don’t want him to fly my airplane.” Fair enough. I’d probably do the same thing to avoid damaging a friendship. |
| Don't be Penny-Wise and Pound-Foolish with Aircraft Insurance |
| You've probably heard the old adage, "penny-wise and pound-foolish." But what the heck does it mean? Is this some kind of quip about buying something by the pound and getting a great price? Or does it have something to do with paying too much when we buy a pound of nuts, bolts, or washers? |
| Insurance for Flying Clubs |
| I recently took a call from an EAA Member who said he heard insurance had just been made available for flying clubs. I told him that's not new news; insurance has been available for flying clubs for as long as I can remember. However, insurance underwriters are not especially eager to insure flying clubs because experience shows they tend to have more claims. Nevertheless, we had a good conversion talking about the flying clubs and insurance. He agreed to gather all the necessary details about his flying club and I agreed to secure an insurance quote through the EAA Aircraft Insurance Plan for his club. |
| Tough Insurance |
| Over the years, I've seen insurance designed for just about every different combination of pilot and aircraft imaginable. I've seen a private pilot with less than 100 total flight hours insured in a Bell 412 (a $2 million, twin-engine turbine helicopter); a 98-year-old pilot insured in a Beech Bonanza; a low-time private pilot insured in a replica 1912 Bellanca Parasol, (which looked like a step ladder on it's side with a wing and an engine attached!). I've even seen airplanes insured that were intended to make their final landing without the gear attached. Just last week I arranged insurance for a very low-time private pilot in a Piper Aztec. |
| 'Tis the Seasons - Happy Holidays |
| I've always been a holiday "nut." As a child I was always the first to bed on Christmas Eve thinking that the sooner I go to bed to sooner Christmas morning would come. Unfortunately for my two sisters and my parents, Christmas morning often began around 2 a.m.! To this day, while I'm not up at the crack of dawn, I still enjoy giving and getting gifts during the holidays. |
| Sport Pilot/Light Sport Aircraft Insurance Update |
| What's going on with aircraft insurance for sport pilots and light-sport aircraft (LSA)? I get this question several times a day, which is a good sign and means EAA members are actively pursuing the new FAA rules as a way to get into, or back into, flying. As we see more and more of the infrastructure come into place, it's important to keep an eye on the aircraft insurance situation, which we've been doing. So far, indications continue to be favorable; aircraft insurance is available, and the pricing is competitive. |
| Are You as Good a Pilot as You Think You Are? |
| As I look back on my years of flying I recall that the first three or four years were spent mostly on flight training and achieving various pilot certificates and ratings. (I did my early flying and college learning at Southern Illinois University, which has a great aviation program.) I earned my Private Pilot Certificate and Single-Engine Land rating and later I obtained my Commercial Pilot Certificate and Instrument Rating. |
| Surprise! Dealing with the Unexpected |
| A friend of mine is a real practical joker. Unfortunately I'm usually the object of his relished past time. But there's no joking around when it comes to the serious side of aviation. Aviation is serious business, as are the unforgiving consequences when a pilot makes a mistake or mechanical problem arises. When it comes to making sure you've got the best aircraft insurance possible, this is a serious matter too, because if you don't pay attention you could end up with insurance that A) doesn't protect you and B) provides less coverage than you expected. Regardless of whether you own and airplane, rent, or borrow an airplane there are no shortcuts in making sure you have the best insurance for your own protection. |
| The Hail You Say! (Dealing with a hail damage loss) |
| The purpose of hull (physical damage) insurance is to help offset the direct economic impact that results from unexpected damage to your aircraft. Without hull insurance you are left to pay for repairs to your aircraft and all related expenses. If you have hull insurance for a covered loss, your insurance company will pay for these expenses subject to the terms and conditions of your insurance policy, or pay you for the insured value if your aircraft is deemed to be a total loss. One of the most difficult losses to deal with is a loss that is more cosmetic or value-related. The classic example of this kind of loss is a loss resulting from hail damage. |
| How and When Should You Shop for Aircraft Insurance? |
| Buying aircraft insurance can be fun! If you go about buying your aircraft insurance with a plan, you'll eliminate the hassles and you'll find the right agent to handle your account. Here's the plan I suggest. |
| What Do You Mean I'm Not Insured? |
| Here’s a true story. A young pilot home from college over the holidays decides to go flying. A current renter pilot at the local flight school, he heads out to the airport with a friend. After the required paperwork and a complete preflight inspection, the pilot proceeds with the pre-start checklist, which includes a few injections from the primer, per cold weather engine start-up procedures. |
| It's All About You! (EAA Aircraft Insurance Plan) |
| Why do people join? That question has been asked and answered by more association and group experts than perhaps any other question. From local clubs and community churches to national and international associations, leaders want to make their organization an inviting and attractive place where people want to be a member. What are the keys? Some say; passion, common goals, resources and services; or a larger voice in relevant issues. The reasons are unlimited and also sometimes arguable. The bottom line is; it's all about you. What do you want, what do you expect, and what is it you are looking for or need? |
| Insurability and Cost, Part One: Aircraft |
| A lot goes into determining whether or not you can obtain aircraft insurance and how much you’ll have to pay. It’s more difficult and more expensive to get aircraft insurance with $5 million in liability insurance coverage than, say, $1,000,000. You will also pay more if you buy hull (physical damage) insurance for anything that might happen to your airplane on the ground, while taxiing, and while flying instead of just getting insurance for the times your airplane is parked on the ramp or stored in a hangar. |
| Insurability and Cost, Part Two: Pilots |
| I've heard the saying many times and I'm sure you have too: "There are old pilots and there are bold pilots, but there are no old bold pilots." While I have no idea who said these sage words of wisdom, I believe these words are accurate beyond question. There may be a few lucky pilots, however most would agree that recklessness, in anything you do, often comes with a heavy price. |
| Insurability and Cost, Part Three: Airports |
| This is part three in our series about insurability and cost in airplane insurance. Part one addressed airplane selection, while part two discussed pilot skills and experience. In part three we explore the airport where you base your airplane. |
| Explore Aircraft Insurance Before Building or Buying |
| When I first became an insurance agent, someone told me that everything is insurable. A movie star's legs…original art work…hole-in-one golf contests…and million dollar, full-court basketball shots. As long as someone was willing to pay the premium, I was told, anything is insurable. Nearly 28 years later, I realize that's not totally true. The fact is, some things are not insurable, not at any price! |
| Will Someone Please Explain the Airplane Insurance Market? |
| Anyone can walk into an appliance store and get a price quote on a popular refrigerator model. In fact, most of us will shop around and use the various prices we get as bargaining chips to seek the best deal we can. So why is it so different when trying to get quotes on airplane insurance? |
| Aircraft Liability Insurance '101' |
| Several members express frustration about aviation insurance jargon. I remember when I became an insurance agent I felt like I needed a secret decoder ring to understand all the foreign insurance words and phrases. Because insurance is a written contract between you and the insurance company, they include many legal terms and phrases. Some years ago many aviation insurance companies rewrote their policies and endorsements to simplify the contract language; however it still may be difficult to understand what it all means. In this "Insurance Tips" article, we break down some of the terminology associated with aircraft liability insurance, and we also discuss how you can help control costs when buying this part of an individual insurance policy. |
| It's Checkout Time ... |
| Has your insurance agent ever said you needed to do something in order to qualify for insurance coverage? Maybe you had an old, large tree right next to your house and your agent said the company wanted you to cut the tree down before they would insure your house, property, liability, and contents. Or perhaps your aviation insurance agent said you would need five hours of dual instruction before you could fly solo or carry passengers because you didn't have any time in the make and model airplane you were planning to buy. Welcome to checkout time! |
| Six Easy Steps in Buying the Right Airplane Insurance |
| Have you ever noticed there are a lot of "Monday Morning Quarterbacks", people who'll be more than happy to tell you what you did wrong or what you should have done instead? Sure, these folks have good intentions, sometimes, especially if they are a friend; however, all this good after-the-fact advice doesn't do much if you've already made a decision that might have been made differently and perhaps better had someone given you a little upfront advice. |
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