insurance value

[pilot716]

Well it looks like we have found our Mooney. a 1983 201, still working on details & prebuy but in the meantime, when you value your Hull for insurance are you going buy the purchase price or do you make it higher based on what you really think the value and replacement cost would be?

[danb35]

I'd say to insure it for what you think the actual value is, but the insurance company may have their own ideas.  They won't, for example, insure a runout 152 for $100k, no matter how much you think it's worth.  If you have a good basis for the higher valuation, though, it would probably be a good idea to use that.

In airplane insurance, the amount you'll get if the plane is totalled is the amount of the policy--it isn't like auto insurance where they give you their estimated value of the car at the time of the loss.

 

[pilot716]

Thats what i figured, thanks

[KSMooniac]

Mine is valued a bit higher than market because of my upgrades, maintenance and equipment.  I would have a very hard time replacing it for that value, though, but it would give me a good start if I had to.  The only risk to putting a higher hull value on the policy is the propensity for an insurance company to repair a wreck versus totalling it and cutting you the big check.  You might end up with a repaired airplane with a significant damage history...which may or may not be a big deal for you.  For a J that might not be a concern but for a $40k C for example, a simple gear-up landing might total an otherwise good plane, so in that case it might make sense to bump the hull value up enough so that it would get repaired.

[MooneyMitch]

Hi pilot716.

Just a thought for you.  You might contact James Oliphant from AOPA Insurance.  He would certainly provide accurate information regarding what you are concerned about.  1 800 622-2672, ext. 133.  I personally have found James to be most helpful.

 

[skyking]

I had mine appraised as it is worth more than the book value.

I have an " agreed value" insurance policy on mine.

I have a 1959 that is insured for 90 Grand as it has a low time engine, new prop, interior etc.

The insurance company had no problems with this.

[Cruiser]

I thought all aviation insurance policies were agreed value?

[Jeev]

I am already dealing with AOPA insurance, Rachel... very helpful. 

[DonMuncy]

I use Jimmy Garrison's evaluation and refigure my plane each year when insurance comes due. It is dangerous to either over-value or under-value it for insurance. It is easy to see the down side of under-insuring, as you would really get hurt financially if it was a total write off. (The insurance company could possibly pay you the low amount, and resell the salvaged parts for enough to come out even.) However, if you over-value it, you run the risk that in a less than total accident, the insurance company might calculate a repair cost that is economically feasible at the higher value. You would be stuck with a repaired damage history plane, when you really should have just replaced it. Naturally it won't make much difference if you only miss the value a little bit. 

Don

[skyking]

cruiser. not always up here in Canada. At first they tried to cap me at 40 grand based on some book value.

The only way to get it to the dollar value i wanted was to have a full appraisal done. If i agreed to the 40 grand they were willing to write the policy then and there. As i spent more than that on the engine, prop, hub etc i was not going to go for that. I still have more into the plane than what i will ever get for it but thats life. We dont spend the money on our toys to make a profit. I just wanted the nicest "A" model on the planet!

[Bob]

Pilot716,

At this point I have only had 2 annual policies, but both times they asked me the hull value and agreed to insure it for what I said.  My first year AOPA could not help me due to low time and also 0 Mooney hours so I went with Avemco and overpaid greatly.  This year I contacted Tom Johnson from Airpower Insurance.  http://www.airpowerinsurance.com/  I was sent to Tom by Alan/Flyingaggie on this board.  By odd luck, I was working in Phoenix when I called him and his office was about 4 miles away.  We had lunch and he presented options and answered all my uneducated questions.  After the policy was written, he helped me in many other ways.  He found a temperary hangar at an airport with a 1.5 year waiting list and shared all his sources with me including someone to do my annual inspection.  Tom is a aviation enthusiast and is a Yak pilot.  He realy knows aviation insurance and will guide you in the right direction.  If you contact him, he will listen to your needs and all will go very smooth! 

Enjoy your 201, they are great plaines!

[Parker_Woodruff]

When a client is undecided, I generally advise them to insure for replacement cost with an aircraft of like kind and quality.

I'd estimate I had my M20J underinsured by about $5,000 but my C172 is probably overinsured by $5,000.  Each for their own reasons.

[Jeev]

all good points. will be guided by Insurance agents and our own best estimates....now on to the negotiating and pre-buy!!!I am almost there..

[Jeev]

this has me logged in as someone else....oh boy..

[tjyak50]

Thanks for the note Bob.  Was nice to have you here in Phoenix fixing all our hail-dented cars!

For Insured Value, figure what it would take you to get a replacement airplane.  What pile of money would you want (after the deductible) to make you as happy as you were the day before the "Uh-oh"...

Mooneys are one of the cheapest airplanes to insure flying.  So generally insured value at or slightly above your value will still be a great price.

Glad to talk about insurance stuff anytime.  I write a lot of Mooney insurance.  The Mooney pilots are generally a real pleasure to deal with.  Not all groups are like that...

Tj