Hangar Insurance options?

[TTaylor]

I have a hangar but am having trouble finding a "reasonable" option to insure it. Liability only is about $625 a year and if I want to cover the structure the total is over $1100. I can cover my second home for $200 per year for both. It appears that we are forced to use only one or two companies as soon as you have a structure on an airport. Any alternatives to the outrageous rates?

[Hank]

Can you actually insure the structure itself, or only the contents? Unless you own the hangar, it will be difficult to obtain insurance on the structure itself.

[TTaylor]

Can you actually insure the structure itself, or only the contents? Unless you own the hangar, it will be difficult to obtain insurance on the structure itself.

Hank,

 

I own the hangar and would like to get basic liability and structure coverage.  It is only worth about $25,000, so $1,100 per year is crazy and even just liability at $625 is nearly 10x my rental house rate that is worth six times as much. My agent thought they could extend coverage for my house policy but the underwriter refused, said they will not cover property on an airport. They classified it as commercial property as well. What type of dangerous things are we doing in our hangars that no one will cover them at reasonable cost?

 

Thanks,

 

Tim

[Piloto]

You may try with your plane insurance company. Another option is to insure your plane for the added value of the hangar. Why would you even need liability for a hangar? I never heard anyone getting injured by a hangar.

 

José

[mulro767]

Tim call Falcon Insurance. They actually don't do hanger insurance but they are affiliated with USAA and they can set you up there. My hanger is somewhat new and has a pretty expensive bi-fold door. It measures 42'x48' and has an insurance value at $70k. My annual premium is $500 for structure and all of its contents.

Brian

[mulro767]

Btw I thought my hanger was worth about $25k because that's what I paid for it. But if a tornado takes mine down then $70,000 is what it would cost to rebuild it. So that's how they value it.

[Rhumbline]

Hank,

 

I own the hangar and would like to get basic liability and structure coverage.  It is only worth about $25,000, so $1,100 per year is crazy and even just liability at $625 is nearly 10x my rental house rate that is worth six times as much. My agent thought they could extend coverage for my house policy but the underwriter refused, said they will not cover property on an airport. They classified it as commercial property as well. What type of dangerous things are we doing in our hangars that no one will cover them at reasonable cost?

 

Thanks,

 

Tim

 

Assuming your rental is currently insured under a dwelling policy attached to a homeowner's policy; could you economically buy a commercial policy for the rental and insure the hangar under that policy?  I HAD to go the commercial policy route some years ago as the number of rentals I was insuring crossed the underwriter's threshold for coverage under my homeowner's policy.  Doesn't sound like the addition of a hangar creates a quantitative problem nor does it alter the structure being located on an airport, but it might be worth a call to your agent. 

 

It's an interesting question as I'm preparing to build a hangar and gave insuring it no thought except that it ought to be cheap since it's essentially a barn.