Hull Insurance Value

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Metal Master
Posts: 526
Joined: Thu Dec 02, 2004 1:52 am

Re: Hull Insurance Value

Post by Metal Master »

[quote="MoonlightVFR"]What Hull value insurance do you request on a Cessna170 A? Later Cessna 170B?
I have my 170A hull value set for what it took me to rebuild it including the purchase price of $8300. And the new 8042 prop which I installed which comes to $25,000.
It is not what the airplane is worth in the market. When I complete the engine upgrade to the TCM IO 360 it will be worth more than I could probable sell it for. I will raise the hull value of my insurance to that which I think would allow me to repair or replace it after the mod. assuming an airframe damage prop strike type of incident.

Do you think that the value of a New replacement Cessna 172 S should have any influence on the hull value of your beloved old Cessna 170?
NO
Can an insurer legally refuse higher hull coverage than an owner has been purchasing in recent years?.
This is hypothetical? In the Business I worked in we had all of our airplanes insured for the replacement value of a similarly equipped airplane. We had 6 152's, 14 172's, 3 172 RG's, 2 182 RG,s, 1 TR 182RG, Two straight 182's, 2 321 Mooney's and three 201 Mooney's. 2 P210's, 2 Seneca II's, 2 Cessna 414's and 2 Cessna 441 Conquest. half of these were lease back the rest owned outright by the business. There were accidents, the insurance company loved us. The always allowed us to rebuild the airplanes that were damaged in accidents. The only time they did not was when a Customer airplane was damaged and they had it under insured. however if the the owner wanted to foot the bill for the additional costs then the insurer had no say in the matter. I rebuilt a ground looped Cessna A185F that the owner had under insured. He helped.
Can you imagine the premium. 911 killed us.
Jim
A&P, IA, New owner C170A N1208D, Have rebuilt some 50 aircraft. So many airplanes, So little time!
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DaveF
Posts: 1516
Joined: Sat Nov 03, 2007 1:44 am

Re: Hull Insurance Value

Post by DaveF »

I think the usual advice not to over-insure is obsolete. Its intent is to keep you from being "stuck" with an airplane that has undergone a major rebuild, and therefore worth less than a comparable undamaged airplane. But a 170 that has had a major rebuild by a good shop is worth more, not less. And the market isn't exactly overflowing with good quality replacement aircraft.
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GAHorn
Posts: 20968
Joined: Fri Apr 12, 2002 8:45 pm

Re: Hull Insurance Value

Post by GAHorn »

I paid $43K for my airplane in 1999 shortly after it's total rebuild. So that's what I originally had it insured for.
I presently have my hull ins. at $60K because that is what I think it would take to replace it with a similar 170B in similar condition. This includes the fact that my engine is now at mid-point (900 hrs) and the avionics and other minor "improvements" that I've installed since I've owned it have increased it's value. The ins co agreed to insure it at that value after I provided them with pics of it's 17-yr reconstruction and documents proving it's re-build and Oshkosh/Sun-Fun awards. At first they balked because they saw in the "Aircraft Blue Book" of fiction that the average 170B is worth $32K. :evil: I don't think mine is "average"... so I proved that to them with documentation and they then agreed.

Do I think I can find an identical airplane configured exactly as my present airplane pleases me? Of course not. So, does the ins. co. owe me an identical replacement and/or restoration of my airplane? I doubt an identical one could be found and I don't think I'd be willing to wait the length of time req'd to restore my total-loss. So, we've both agreed that I'm buying $60K of insurance which has an annual premium of about $1200.

The bottom line for me is, ... I have it insured in order to give me protection from a total-loss scenario.... not to obtain a new airplane. Therefore NO... a new 172 doesn't fit into the equation. (In actual fact, I wouldn't want a fresh, off-the-assy-line 172. Such an airplane is not the airplane I desire...a classic 170B. If the ins. co. offered to assuage me with such a replacement I'd immediately owe IRS for the addt'l income because I'd sell it, buy a 170B, and pocket the difference.)
'53 B-model N146YS SN:25713
50th Anniversary of Flight Model. Winner-Best Original 170B, 100th Anniversary of Flight Convention.
An originality nut (mostly) for the right reasons. ;)
n3833v
Posts: 857
Joined: Tue Apr 23, 2002 6:02 pm

Re: Hull Insurance Value

Post by n3833v »

I was just quoted for the insurance premium of less than $1000.00 for same coverage as last year. I have Falcon and it came down over $100.00 this year which makes me very happy. Now I can buy more fuel for practice. Happy flying.

John
John Hess
Past President 2018-2021
President 2016-2018, TIC170A
Vice President 2014-2016, TIC170A
Director 2005-2014, TIC170A
N3833V Flying for Fun
'67 XLH 900 Harley Sportster
EAA Chapter 390 Pres since 2006
K3KNT
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