Ed Anderson
Joined: 10 Jan 2006
Posts: 475
|
 Posted: Thu Oct 04, 2007 6:10 am Post subject: Underinsured Hull was : Re: Insurance for First Flight |
 |
|
Stan, if you have hull insurance say $20K for an aircraft worth say $100k (therefore you are "underinsured") and are in an repairable accident, the following could legally happen. If the salvage/resale value of the hull is worth more than your $20K policy then the insurance company can declare your hull "Totaled", pay you, your $20k, take possession and sell the aircraft for it true "salvage" value of say $75K. So instead of a loss to the insurance company they make a "profit" of $55K on you accident. Not bad, eh?
I have hear of this happening but have no ideal whether this practice is prevalent or not - you wouldn't think so, but with insurance companies you never know. In any case, many believe it is better to have no hull insurance rather than be "underinsured".
Ed.
Ed Anderson
Rv-6A N494BW Rotary Powered
Matthews, NC
eanderson(at)carolina.rr.com (eanderson(at)carolina.rr.com)
http://www.andersonee.com
http://members.cox.net/rogersda/rotary/configs.htm#N494BW
http://www.dmack.net/mazda/index.html
[quote] ---
| | - The Matronics RVSouthEast-List Email Forum - | | | Use the List Feature Navigator to browse the many List utilities available such as the Email Subscriptions page, Archive Search & Download, 7-Day Browse, Chat, FAQ, Photoshare, and much more:
http://www.matronics.com/Navigator?RVSouthEast-List |
|
_________________
Ed Anderson
Rv-6A N494BW Rotary Powered
Matthews, NC
eanderson@carolina.rr.com |
|
Get Email Distribution Too!
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
