Published Aviation Articles

Ways to Play it Safe

Are you wondering if you really need that hull insurance that you have not ever used? Maybe you have paid off a loan on the aircraft and are looking to drop the hull insurance for a savings. Is that really the best thing to do? We all hope we never have an insurance claim, but it is a possibility even if we do not expect something to happen. We all intend to be safe pilots and fly as safely as possible. Some aircraft owners are not aware of what hull coverage they may have in force. The best thing to do is to read your aviation insurance policy, if you do not understand the language call your agent for an explanation. Do not assume you have “full coverage” if you carry hull insurance. We at AUA, Inc. would like to help you understand hull insurance and the different types of hull coverages. Hopefully the following information will help you understand what coverage you have or what you may need for your own exposure.

Aircraft hull insurance covers the physical damage to your aircraft. Maybe you just
purchased an aircraft insurance policy and you were told the policy included “all risk hull” or “full coverage”. You feel you are completely covered for everything right?
“All risks hull” or “full coverage” is a term used meaning you have in flight hull
coverage, this includes ground and taxi plus ground not in motion coverage. All policies have exclusions “things not covered” listed section. Again coverages are subject to the terms and conditions of your policy. Make sure you read your policy and understand what you do have.

If you have purchased in flight hull coverage, you are covered on the ground including when you open your hangar door to go flying and until you return your pride and joy to your hangar.

Should your hull only include ground and taxi coverage, you are covered when on the ground with props turning. This coverage is not active once you are on the active runway. An example would be you have a project you are working on or your aircraft is down for maintenance or repairs and you will be starting your engine, you do need taxi coverage.

The last type of hull coverage we need to discuss is ground not in motion hull coverage. You may hear it referred to as ground only coverage, storage or work in progress. This of course covers your aircraft while it is sitting on the ground and the “props not turning”. Ground not in motion generally covers losses for most all perils. Maybe you have a project you are working on and want to secure what you do have invested in the aircraft. This is where you will hear the “work in progress”. You should estimate what the value will be at the end of your 12 months policy period. Premiums are generally based on the value in the middle of the beginning and ending value of the aircraft during the policy period. Check with your agent for coverage each company has different work in progress underwriting rules.

We had a customer once to call the office to say he had a claim to report. He had been flying his aircraft and had engine problems. The aircraft was damaged in a forced
landing on the ground. We told him he had the ground coverage only which he had
requested. He said “Well the aircraft did hit the ground, so this is a ground claim”.
Needless to say he did not have coverage for this. Remember read your policy and
understand what coverage you do have. Always talk to your agent if you have any
questions.

We hope this has helped you understand the different levels of hull insurance. Your
aircraft is your investment, so make sure you get proper hull coverage for your aircraft and your own personal needs.

AUA, Inc. has been endorsed by the WBS. We are proud to be a part of the WBS team.
We specialize in all aviation risks. Our personal and professional service will give you
assurance that your aviation needs are being met at the highest level. Please give us a call at 1-800-727-3823 or click here for a no obligation quote.
Remember: We own one, we fly one and we insure many. Join us and have it all!

Pam Sharpe
Sales Agent
AUA, Inc.