The frequently asked questions (FAQs) section is designed to answer many of your most common questions regarding aircraft insurance and claims on your insurance policy. Simply click the question you are interested in to review information on that question.

"Since my aircraft is in the shop, I don't need insurance on it. The shop's insurance will cover any damage which might occur."

"This darn insurance costs so much. I'm going to lower the hull value on my aircraft by 20% to help reduce the premium."

"What is an Open Pilot Warranty (OPW)?"

"I want all the pilots who fly my aircraft to be named on the policy."

"What does it mean if I list someone or some entity as an Additional Insured on my policy?"

"What is a Waiver of Subrogation?"

"What is a Breach of Warranty?"

"Can I amend my coverage to ground only?"

"What are the most common claim procedures?"

"Since my aircraft is in the shop, I don't need insurance on it. The shop's insurance will cover any damage which might occur."

WRONG. First, understand that the shop's insurance (assuming they have any) is called "Hangarkeeper's Liability Protection." The term liability carries a lot of meaning here. If your aircraft is damaged through no fault of the shop, their insurance won't help you.

"This darn insurance costs so much. I'm going to lower the hull value on my aircraft by 20% to help reduce the premium."

We certainly understand the feeling behind this common statement. Unfortunately, there's a potential big downside. Assuming the insurance company will let you lower the hull value by that much, if there is a claim, you are opening yourself up to the possibility of your aircraft being considered a "total loss" if there is a claim. It's really just a math equation: If the insurance can pay less money by totaling your aircraft and collecting the salvage value (as opposed to paying the repair costs), they will do that. The lower your hull value relative to the aircraft market value, the greater the odds of this happening.

"What is an Open Pilot Warranty (OPW)?"

Found on most policies, this is a provision which sets forth the minimum pilot ratings and hours another individual must have in order to fly your aircraft and not void your insurance coverage. Some policies also include an age range and depending on the complexity of the equipment, a recurrent training requirement may be included as well.

"I want all the pilots who fly my aircraft to be named on the policy."

This is an unfortunate position far too many people take with their insurance companies. To be sure, the companies would like to know about the primary pilots (those who fly the plane more than 10 hours per year). However, if there is an individual who only occasionally flies your aircraft and meets the terms of the policy "Open Pilot Warranty," there is absolutely no benefit to having them named on the policy as an approved pilot. Likely born of a basic distrust of insurance companies, requiring this of your underwriter is only causing unnecessary work; the end result of which may well be a higher premium for you next year.

"What does it mean if I list someone or some entity as an Additional Insured on my policy?"

It means you are agreeing to share your liability protection with them in the event you are both named in a lawsuit involving your aircraft. It does not increase the limits provided by the policy. In fact, if you are both sued, it dilutes your coverage because now you are sharing with someone else. Sometimes it costs money to have an Additional Insured put on a policy, sometimes not.

"What is a Waiver of Subrogation?"

This is usually provided in favor of someone (sometimes it is given to an entity such as an airport authority). It means your insurance company is agreeing not to sue the favored person in the event they cause damage to your aircraft. See, that damage is going to cost the insurance company money (in the form of a claim payment to you) and they have the legal right to try and recoup their loss from the offending party. If you are the policyholder, you don't need to worry about this because the insurance company can't sue their policyholder.

"What is a Breach of Warranty?"

You will most likely see this associated with a bank loan. Many lenders require that the insurance company promise to make them whole, in the event of a claim, regardless of whether or not the policyholder (you) has violated the terms of the policy. The company may agree to this only for values of 90% or less of the insured value of the aircraft. It's unusually not a premium bearing item unless you have to increase your hull coverage to cover the 90% clause.

"Can I amend my coverage to ground only?"

Time was when you could, with the provision your plane had to be down at least 60 or 90 days, receive some return premium for this. Unfortunately, now there are companies who won't offer any ground credit at all and others will only allow you to go from ground to flight or flight to ground once during the policy period. If this is an issue for you, better bring it up before buying the policy. You might find that even with a 60 or 90 day ground only credit, some other company that doesn't offer any ground credit is more cost-effective.

"What are the most common claim procedures?"

The insurance companies we represent pay their claims. No doubt, some are quicker than others and some ask too many questions. Still, the folks we represent generally uphold their end of the contractual deal. That said, there can be frustrations...

How long will m claim take to settle? Unfortunately, this answer largely depends on where the nearest (suitable) repair shop is, the extent of the damage and the availability of new, used or serviceable parts. The company claim adjusters have a pretty good handle on the repair network in our country, but there can be stumbling blocks which aren't any one person's fault. If things go well and the damage isn't significant, you could be back up in 30 days. If it's bad or there are parts issues, it could be months.

Prop Strike: Let's say you have a prop strike at exactly the 1,000 hour mark on a 2,000 hour engine. Probably, a teardown is going to be required and maybe, an overhaul. With a few exceptions, the companies won't pay for the teardown unless damage is found which is a result of the prop strike. That's okay you say, teardowns aren't that expensive (we're in the world of airplanes).

Ahhh, but engine overhauls are expensive (at least we think so). If an overhaul is required, the company will only pay the pro-rated amount based on the hours which remained on the engine to TBO. In our example above, the pay 50% and so do you. You're calm right now because you probably see the logic. But consider, you weren't expecting this cost right now - it was supposed to be years away! Therefore, since it's unexpected, the insurance company should pay for all of it. Uhhh, that's a good try, but you won't win the argument.

Gear Up Landing: No, you shouldn't have done that, but you did. The insurance company will very likely pay the claim. Your rates will go up somewhat (20%?) next year and no other company will be willing to give you a quote. In essence, you can still get insurance and the company won't gouge you over it (unless you do it again). You shouldn't bother "shopping around" for a few years. The other companies will let you try to earn their money back.

My Engine Ate Itself: We're sorry. Congratulations are certainly in order if it happened in flight and you arrived back on the ground safely (whether in a single or twin). That said, the company isn't going to pay for your engine. Consider the analogy of having your car engine die - you pull off the road and call a tow truck (you don't call your auto insurance company). We know, you saved the company a lot of money by handling the situation and we agree. Bu see, the actuarial tables the companies use assume that some of you will handle it effectively.

They will pay for items damaged outside the engine compartment and of course, if an off-airport landing was made and the plane was damaged, they'll pay those damages as well (plus the cost of moving the airplane and any property damage you plane inflicted).

My Plane Suffered a Wingtip or Tail Ding: This is usually a painless (relatively speaking) situation. One caveat though: You might notice the damaged area has fresh paint and the rest of your bird does not. That doesn't look right. We agree, but you'll have to pay to have the rest of the plane painted.