hull insurance policy
aircraft insurance policy with hul coverage
Let's presume you have insured your aircraft on a broad policy form providing both hull and liability coverages. As a part of this policy, you carry "all-risk" hull coverage and have included an expansion endorsement, which provides a small amount of extra expense for substitute aircraft coverage ("extra expense.") The term "all risk" is an insurance industry misnomer. It does not mean that everything is covered. It means that everything is covered except those perils specifically excluded in your policy. We might say "all risk" subject to the policy terms, conditions, and exclusions.
Would it surprise you to learn that most states do not require you to carry liability insurance on your aircraft? Or that none require hull insurance? Or that your aircraft insurance policy probably does not cover you, yourself, in the event of death or disability and may not cover your family (or your employees or co-workers) when they fly with you? Insurance is probably the last thing most people want to think about when they prepare to sign on the dotted line for a shiny new (or used) airplane, but the consequences of ignorance can be tragic. It behooves the pilot considering an aircraft purchase to become familiar with the legal ramifications of aircraft insurance.
Insurance is a form of economic self-protection and is available in two different forms. Hull insurance protects your investment in your airplane from damage or loss. Liability insurance protects you in the event that your aircraft does damage to other people or their property. While no legal obligation to carry hull insurance exists, you will probably be required to obtain it by the lending institution that holds the note on your airplane. If you pay cash for your airplane, or when you pay off the loan, the decision whether to carry hull insurance is yours. And while few states require liability insurance (see above for those that do), it is almost a foregone conclusion that, if your airplane causes damage or loss to another person, you will be sued. If you do not carry insurance and are involved in an accident or incident in a state that requires it, your aircraft may be seized. Without insurance, few people are prepared to sustain the financial losses that an accident can bring. Simply "being insured," however, can be useless unless the aircraft owner understands exactly the coverage he has purchased.
Just because your hull insurance carries the words "all risk," for instance, you are not necessarily fully covered against any exigency. There are three main types of all-risk hull insurance that cover damage or loss to the airframe, engine, propeller, avionics, and other systems and equipment, regardless of the cause of the accident. All risk, not in motion coverage protects your airplane while it is tied down, parked, moored, or being moved under power other than its own. All risk, not in flight coverage protects the aircraft while it is moving on the ground (or water) under its own power. All risk coverage protects the aircraft at all times, on the ground or water and in flight. Bear in mind that, according to most policies, a flight begins when you begin your takeoff roll and ends when you end your landing rollout at your destination. Under such a policy, not-in-flight insurance will not cover you for an accident that occurs on the ground on the active runway (a ground loop, for example). If the words "all risk" do not appear on your policy, payment of a claim may be contingent on the circumstances of the accident.
Local time: 11:05
Native speaker of: Croatian, Spanish
PRO pts in pair: 498