Insurance while building

[Nev]

What did you all do insurance-wise while building ? Did you get full cover for the kitset and parts ? Or not bother ?
I’m thinking along the lines of covering for fire/natural disaster etc.
Thoughts welcomed.

[auburntsts]

Not sure what your options are in NZ, but here in the US I went thru EAA (partnered with my auto insurance company) and got a.not-in-motion builders policy that eventually I converted to an in-motion policy once my project became an airplane and started flying.

[Nev]

Good to know thanks.

[Flygirl1]

I honestly cannot remember which insurance we used, but we used it! I believe it was EAA. They offered a builders insurance just for this purpose. The problems came when we tried to insure them for flight. They required time with an instructor who had time in type. That was almost 4 years ago so things may be a lot easier now.

[gregc]

I went through EAA as well. Company was Falcon Insurance. I got a policy for the price of the kit but will probably increase once I have a engine.

[svyolo]

If I was in a place subject to lots of natural disasters I might have thought about insurance. The US gulf coast comes to mind. Where I am, the biggest threat to my kit is.......me. I don't think anybody would insure that. At least not anybody that knows me. LOL I guess that would make me "naked".

[Pbruce]

I have been trying to buy the project insurance which EAA promotes. It turns out that at in Canada, that while they do advertise this insurance, they don’t really offer it except at the discretion of the underwriter. It’s more of a “bait and switch” programme, which is very disappointing. EAA funnels clientele toward certain brokers, who in turn try to capitalize on “In Motion” policies, home policies, etc. If you try to get builder insurance though, they put your request out for tender to underwriters who really don’t know anything about homebuilding and don’t seem to want to carry the policy. They ask a lot of questions about your flying experience, accident history, recent flight training and other things which have no bearing on the risk they are undertaking. A builder policy should cost roughly what a kit car or boat storage policy costs for equivalent asset values, but It’s several times more expensive. In my case, $1500 per year was quoted.

personally, I don’t think EAA should do business with underwriters who won’t carry builder policies at reasonable rates, regardless of how well they are compensated by those underwriters. I think that if an underwriter is going to receive free marketing from EAA for home, life, or auto insurance, they need to reciprocate by making tailored builder products available at fair prices.

[Nev]

This is exactly what I’ve found in NZ so far.

[Bcone1381]

I live in the USA. I have procrastinated on moving ahead on a quote for builders insurance that I got thru the EAA (Falcon Insurance) in May. (Thanks fo the reminder.) The policy cost was $600 and says "Physical Damage;H. All Risks Basis" Not in Motion and is for a value of $100K. A lower value will lower that cost.

I believe that "Physical Damage Not in Motion" will cover stupidity. If is does not, what does it cover? I wrote to Falcon Insurance just now to confirm my belief. I know that I am my own threat. I expect my insurance to cover damage to my kit things like trip and fall while carrying a wing, a heavy iron bar falling onto a fuselage, my workshop catching on fire, or damage while moving the project someday to the airport..

[gregc]

I would be interested to see how they respond. You don't really know for sure until you submit a claim but my (Falcon) policy says ¨Coverage H - All Risk Basis Not in Motion". All Risk Basis generally means any risk that the contract does not explicitly omit.

[Bcone1381]

I just heard back from Bob Haag at Falcon. He confirms that the policy covers the kit if I trip and fall while carrying a wing and damage it, and if I damage the kit while moving it to the airport. However.....Harken Diligently folks....if I drill a hole in the wrong place, it is not covered.

[Flygirl1]

Soooo, if I trip and fall into my wing with a drill in my hand???? ;-)

[robcaldwell]

I used https://www.parrishoneill.com/ for kit insurance. Very affordable.

[Pbruce]

Rob, could you give us an idea of how “affordable”? Thanks.

[robcaldwell]

Rob, could you give us an idea of how “affordable”? Thanks.

Roughly $53 per $10,000 of coverage annually.

[Pbruce]

Thanks. That is quite helpful.

[Battson]

Nev - I got hull not in motion insurance, or similar, through AON NZ (Dunedin office, Craig is the man to talk to). I think it was about $540 per year in 2013.

[SimonNicholson]

I was getting mine through AON too Jono. It started out $1000 per year in 2017 and was $1900 this year. Getting pricy for ground cover only.

[Battson]

Yikes....... hasn't the market collapsed lately.

[Pbruce]

Man, we are getting hosed in Canada! The EAA provider quoted me 3 times that! “Canada is a different market” they say. So what though? It’s a low-risk market with stable USA-standard infrastructure.

I don’t think EAA is meeting the objective they are trying to fulfill. If you are going to channel people toward certain brokers or underwriters, you need to obtain certain reciprocal commitments for fair pricing. EAA is effectively funnelling prospective clientele toward brokers who are thumbing their nose at the core business they are supposed to be providing, while taking the ancillary business which is being handed to them. It’s quite disappointing.

Thanks to everyone who shared rates. If there is a fair rate provider in Canada I would very much like to know who it is.

[Nev]

Nev - I got hull not in motion insurance, or similar, through AON NZ (Dunedin office, Craig is the man to talk to). I think it was about $540 per year in 2013.

Thanks Jon, I’ll give him a call.

[Chris In Milwaukee]

Man, we are getting hosed in Canada! The EAA provider quoted me 3 times that! “Canada is a different market” they say. So what though? It’s a low-risk market with stable USA-standard infrastructure.

I don’t think EAA is meeting the objective they are trying to fulfill. If you are going to channel people toward certain brokers or underwriters, you need to obtain certain reciprocal commitments for fair pricing. EAA is effectively funnelling prospective clientele toward brokers who are thumbing their nose at the core business they are supposed to be providing, while taking the ancillary business which is being handed to them. It’s quite disappointing.

Thanks to everyone who shared rates. If there is a fair rate provider in Canada I would very much like to know who it is.

I actually made a similar comment to Bob Mackey at a SportAir workshop one time. I told him that I went to the Falcon booth at AV and asked them about aircraft A, B, C, X, Y, and Z. They wouldn’t insure any of them. But they were happy to insure me in a C-172. When asked how they were the preferred vendor for experimental but wouldn’t write one, he tap danced around the answer.