| Author | Message | ||
     Jim Lewis |
To all: It would sound like a good idea to investigate Graig Albright's idea of "a self help Express Group" to elevate the knowledge and experience of all Express owner/pilots in an effort to reduce insurance and of course reduce accidents that hurts us all with insurance cost, bad news about homebuilts and so forth. I often wonder why the EAA as the parent of all homebuilts hasn't ventured into providing insurance to builders ?? Has anyone looked into this with EAA??? I'm so far from my first flight that maybe by the time I'm ready ALL OF YOU MAY HAVE SOLVED THE PROBLEM. Do so much enjoy all the information on this web page thanks to all who have gone before and Many Thanks JIM LEWIS | ||
| Tom R. Hutchison (Tomhutch) |
FYI for everyone. My construction policy with Avemco expired recently after they wanted a 25% increase in the premium for the same coverage. I called to ask about renewing coverage today and was told they would be glad to cover my construction, BUT WILL NOT cover the Express for inflight hull coverage. Needless to say I will be looking elsewhere for construction insurance. BTW I have a farm property policy with Country Companies that covers my shop and contents. BUT, they WILL NOT cover the loss of my project since it is an aircraft. Arguing that it is not an airplane till the FAA says so, did no good. In reality they have no exposure from aviation related risks, but that doesn't make any difference. Go figure! Tom | ||
| jharlow |
There are two thing that burn my ass, one is a fire about 3 foot high and the other is the rip off that insurance companies are presently wrapped up in. There has got to be a root cause for there losses and knock on wood I'm not one of them but suffering from the increase. WE are paying the price for their inability to manage risk. I dropped my In Flight coverage which is what they wanted me to do by the $4500.00 premium they offered. I still feel that the not in motion price is excessive as compared to my previous C182. My Cessna was $1200/yr at a value of $80k and full coverage and yet my Express is $2450 for a value of 100k and not in motion. Something is rotton in Denmark!!!! Sorry if this is a little off color but I'm mad as HELL and feel helpless to due anything. John Harlow | ||
| Tom Hutchison (Admin) |
Just to fan the flames a little higher. I was quoted a premium of $599.00 for $70,000 of "Aircraft Damage (excluding In Flight)" coverage during construction. Now compare that to my farm policy premium for my dwelling. $235.65 for $192,000 (dwelling, contents and living expenses) of coverage. Now the risk exposure to fire, theft, flood earthquakes etc. are EXACTLY the same for my pile of fiberglass parts and my home. Yep, something really is rotten in Denmark. It appears to me there is a huge opportunity for a property underwriter to provide "Not in-motion" coverage for a reasonable premium to aircraft owners. The reason given by the aviation insurance industry for these excessive premiums is the relatively small risk pool represented by general aviation. By insuring aircraft not-inmotion like other property the risk pool would by larger by several factors and still fall under the same risk exposure as homes, commercial buildings etc. It's too bad insurance comes due during tax season. It's enough to drive a sane person to drink. Tom | ||
| Brian McKinney (Bmckinney) |
I follow the Lancair Mail List and it seems that there have been 3-4 complete losses of the IV's over the last year or two which caused a major increase or total cancellation to their policies. They have found other companies who have written policies at a lesser cost then AVEMCO. Brian | ||
| CHARLEY SCOTT (Hogfan) |
I am not trying to defend the Aviation Insurance companies but as an Independant Insurance Agent and builder/pilot I can possibly explain a few conditions. 1. For the past 10-12 years insurance companies earned a good profit from investing "our" premium money in the markets. Now that has changed and to stay solvent they must charge more premium for the risk coverage they sell. 2. Another factor during the good times I just mentioned underwriters were not under as much pressure and didnot underwrite the risk as closely as they are forced to do today, this is true for aircraft as well as for pilot experence. 3. There have been an un acceptable accident rate, which converts to loss ratio for the insurance industry, for certain make and model of custombuilt aircraft. Unfortunately some companies are lumping all composite custombuilt aircraft together. 4. Here is a big factor, a few years back Houston Casulty purchased several aviation insurance companies and consolidated them into just two companies, thus greatly shrinking the compition. 5. Another problem with a composite custom built aircraft is when there is an accident and the airframe is repairable there are very few shops doing this type of work and of those only a hand full which are doing the first class workmanship which a homebuilder is going to demand. Plus they are charging exorbinate prices to rebuild a composite homebuilt. This all relates to higher premiums. But there is something we can do; First tell EAA and AOPA to get out of the insurance business. Start with EAA backed Avemco the only interest EAA has is the money Avemco pays EAA in sponcership, advertising, grants and BS. EAA doesn't give a damm how much we pay for insurance so long as they get their cut. EAA should be advising the membership of the facts not just endorsing one company. There are other companies who will write custom built composite aircraft, they usually have better coverage at competitive prices. Contact one of the larger independant insurance agencies who specialises in homebuilts, warbirds and antiques. Falcon is one who, to my knowledge, has a good reputation. They will closely underwrite the risk and this is for our own safety also. A 100 hour pilot with out and instrument rating would not be able to purchase insurance in a high performance home built. One more sore spot and I will quit, AOPA, they work through a broker who could provide a good service but don't trust them (AOPA) A few years ago they were placing enerything with one company. When that company's A M Best rating dropped to a D the insureds and membership were NOT notified. This is totally unaccectable, We as members should be advised of problems in a related industry where in case of a loss the policy holder could have been left with out coverage or at best had a delay and hassel going through a third party for reimbursement of a loss. I hope this may help some better understand and deal with the problem. My Glasair is presently insured through AIG and they also have insured two Express, one flying and one as a project. Charley | ||
| jharlow |
Charlie, I sure hope to see you at SNF so we can carry on this conversation to a greater degree. I have over a 1000 hrs, inst rating, and 100 hrs in an Express. No previous claims and yet AIG and Falcon would not consider me this year even for liability only. AIG because I base at a grass strip and the Falcon agent I spoke with did not even have the courtesy to respond back. My basic liability coverage with Avemco is $841, $47 for medical and over $1500 for not in motion to cover a 100k declaired value. Maybe we need to join Aerobatic section of EAA for Falcon to consider us. BTW, How is your Express (Auriga) project coming along? Ron Johnsen has his ready for taxi testing but held up for lack of insurance even from Avemco. John | ||
| Nick Downs |
How much is the cost of insurance tied to flight time? | ||
| Eric Holmberg (Erich) |
I got a quote in January 2002 for a pilot with less than 2,500 hours, no IFR ticket, and no commercial rating, the price was $5,000 / year from Avemco for a $120k declared value. Once you have 2,500 hours, IFR, and a commercial rating, the price dropped to $2,500. At 5,000 hours it dropped to $2,250. I'm going to talk to Falcon this week since I might have a hanger this week, so I'll start kicking up the building a notch. Let me know what you get on pricing. -Eric | ||
| Mark Rich |
I went with Falcon last month $3810 for 100k declared. IFR rating but less than 300 hrs TT. They required 15 hrs in type. Mark Rich |