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Builder's insurance

T

tx_jayhawk

Well Known Member
Does anyone know if Pappas Insurance is still in business? I've left a couple of messages but have not heard back.

What other options exist and what have builders been paying for builders insurance recently?

Thanks,
Scott
7A Finishing
 
I just bought a builders policy from Jim back in November...but my check still hasn't cleared...not sure what's up.

I paid $383 for this years premium, wings & tail.
 
I have heard that USAA has builders insurance -- but you have to be active or ex military to be a member.
 
I left numerous messages and e-mails with him last year. He never called me back.

Check this out:

http://www.eaa.org/benefits/aircraft_insurance.html

Call the number...don't go to Falcon's main number 'cause you'll get shafted. The best rates I was able to get on my own were about $1000 a year for $50,000 coverage. Yes...this was just builders insurance.

Through the EAA program, if you're a member, you pay 1% of the insured value with a $40,000 minimum.

There were some folks that wouldn't even talk to me because I'm building a Bearhawk and not an RV or a Lancair. These folks were absolutely no hassles. They do require a N number registered first before they can bind it, though. That takes about a week to get FAA confirmation in the mail. Just an FYI.

If you strike out elsewhere, this is a good bet.
 
Falcon EAA high too.

A couple of weeks ago I got a quote going thru the Falcon EAA program for $1k just for builder insurance. Even though my current value is about 45K, they based the quote on the projected end of year value of 90k. Made no sense to me, so I'm still self insured.
 
jcoloccia said:
Through the EAA program, if you're a member, you pay 1% of the insured value with a $40,000 minimum.
Click to expand...
This is how I went with my builder's insurance. Be advised that the EAA and Falcon will want an N-number to bind the policy, so like me you might find yourself needing to reserve an N-number a little sooner than you'd planned.

The guy I worked with on the EAA insurance line was Ladd Gardner.

mcb
 
I have mine thru SkySmith Insurance, 800-743-1439. Cost me $347 a year for a $25,000 policy (since my parts are at home and in my hangar, when I combine them I will have to up the figure). Very nice folks to deal with, policy thru AIG.
 
I chatted via e-mail with Jim a few weeks ago. We're going to put an article together for the Hotline sometime on selecting insurance. He mentioned at the time he was really swamped with work and life and then I never got a chance to get back to him cuz...then.... I.... was. ;)
 
Don't forget liability..

Nationair: 636-532-0023 does a good job.

Last premium was 1% of value *that you want to insure* and includes liability insurance as well. (Don't recall amount, but reasonable).

Liability is important because while you can drown a whole troop of kids in your pool and have it covered by a homeowner's umbrella, have one of em bump their head on the plane and you are likely on your own.

If you are building at home, at least with State Farm, consider the *airplane* a black hole, both in material loss, liability and casuality exposure. Check with your agent to be sure.

And no fair calling it a canoe, either. I asked.

John
 
Sign of the times

My EAA Falcon guy asked me if I want "terrorism insurance" in addition to the regular builders insurance. I told him that if it gets to that point, I don't think I'll be needing the plane...
 
Only $10.00

I couldn't resist. I stapled the rider over my desk at work. My clients get a bang out of it.

Now that they've hung Saddam, I guess I'm safe but if those evil-dooers ever unleash a corrosion-bomb in Coppell, I'm covered.
 
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bullojm1 said:
I have heard that USAA has builders insurance
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Not so much anymore... I had coverage through USAA last year. For Aviation USAA was acting as an agent, but the coverage was provided by USAIG. A few months ago I got a letter from USAA saying that my coverage would now be handled by the Falcon Agency.
 
tx_jayhawk said:
Does anyone know if Pappas Insurance is still in business? I've left a couple of messages but have not heard back.

What other options exist and what have builders been paying for builders insurance recently?

Thanks,
Scott
7A Finishing
Click to expand...
I called Pappas Ins and no one called me back. So I called Nation Air. This is what she told me.
_________________________________________________________
Please see the attached quotes for your RV-8 project. The 2 companies that quoted have very different Builders Risk policies. Global Aerospace quotes only one value, with the minimum value being $40,000. This value is broken down by percentages to cover each item of the aircraft. This is called a components endorsement and I have attached an example for you to look at. I have chosen the minimum value of $40,000 you will have to look at it and see what value you would need to cover all of the parts. The annual premium will be 1% of the value you choose, so for $40,000 the premium will be $400.00. This policy does not cover the transportation of the aircraft and you must have a reserved N# to bind coverage.

AIG Aviation uses 2 values a beginning value and an ending value for the policy term of one year. So basically you use the value of the parts now and then estimate where you think you will be at the end of the policy term. This way you do not have to keep calling and increasing the value every couple of months as you add more parts. You can always raise the ending value if needed. This policy also covers the transportation of the aircraft and you can bind coverage with the builders or kit number and of course the N# if you have it.
__________________________________________
Global Aerospace - With the EAA Program Annual Premium : $400.00
Aircraft Value: Minimum Value $40,000

Items % coverage Value
Wings 10% $4,000.00
Fuselage 15% $6,000.00
Tail Kit 5% $2,000.00
Prop/Engine 30% $12,000.00
Avionics/Instruments 25% $10,000.00
Miscellaneous 5% $2,000.00
Finish Kit 10% $4,000.00

Liability: None
Medical Payments: None
PLEASE SEE THE EAA COMPONENTS ENDORSEMENT THAT IS ATTACHED TO THEIR BUILDERS RISK POLICIES. The annual premium is 1% of the value that you choose to insure the a/c for. This policy does NOT cover the aircraft while it is being transported.


American International Group (AIG)
Annual Premium: (with AOPA discount applied) $473.00
Aircraft value is beginning at $15,000 not to exceed $21,000 during the policy period.
Deductibles: $100 not in motion losses
Liability (min. required) $250,000 Excluding passengers
Medical Payments $1,000
This policy DOES cover transportation of the aircraft.
_______________________________

Hope that helps you out. So far they have been very nice to me. I went with the 1% policy. PM me if you need the lady's info.
 
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Pappas Insurance

The rumors of my death........

Seriously guys it's been a rough time the last month, mostly family health stuff during the Holidays (I did take a couple days off too after the hospital stuff) but I finally got back to the desk today.

I'm sorry for anyone that I missed and promise to get back to full speed ASAP.

I owe a few folks quotes and if they haven't gone elsewhere I'll still give em a shot.

I don't do this as my main source of income, I do this because I am a builder too and a bunch of the guys asked me to get into the market so "one of us" builders could work with the Insurance industry to get us served better.

Based on that I am real sorry for the lack of service on my part recently.

Thanks for understanding (I hope) and for asking about me.

Life is returning to normal and I hope it stays that way.

Best to all you folks and hope to contact everybody quickly.

Jim
 
Another question

I have purchased a 90% complete -10, and will need to be transporting it back home from Az to central CA, apx 800 mile trip.

In reading this thread, it appears that most "Builders" insurance policies dont cover a project in transit.

Any info out there??

I am pretty sure I am not the first person to need to insure something like this.

Thanks in advance,
Mike
 
Mike S said:
In reading this thread, it appears that most "Builders" insurance policies dont cover a project in transit.

Any info out there??
Click to expand...

Read post #14 at the bottom. I think American International Group (AIG) may cover it.
 
Thanks

Axel, I read what you are talking about, however, unless there is a bit of a misprint there, the $21k high limit from AIG is not going to be anywhere near enough coverage.

I guess I will have to do a bit of phone calling to the various vendors.

Jim P.------is this something you can cover???

Mike
 
Homeowners insurance while building

FWIW

I just spoke to my State Farm insurance agent about covering my airplane while I'm building it in my attached gargage. They call the regional office and said it is covered as long as it does not have an engine attached. It would then be treated like auto insurance. With my policy, my personal possessions are covered for 75% of the dwelling value. Something to consider for when you hang your engine.

Dave Syvertson
RV-10
QB40625
 
Hmmm...that's completely the opposite of what my aunt (my SF agent) told me. No way, no how, that State Farm will cover airplane parts in the garage or house. She thought for sure that she could get them covered under either homeowners or my personal articles policy. Neither would do it. Interesting. :confused:
 
Ditto

cjensen said:
Hmmm...that's completely the opposite of what my aunt (my SF agent) told me. No way, no how, that State Farm will cover airplane parts in the garage or house. She thought for sure that she could get them covered under either homeowners or my personal articles policy. Neither would do it. Interesting. :confused:
Click to expand...

I got the same info from my State Farm agent.---------no airplane stuff covered.

Mike
 
Same with my broker, she said NONE of the underwriters would cover an airplane. Requires its own policy.
 
Builders insurance

I spoke with the agent again and she reiterated that the underwriter said it would be covered. I asked for email confirmation that before it has an engine it is covered. She put our conversation in my master file of what the underwriter said, butI want to be absolutely sure. I will let you all know what happens.


Dave Syvertson
 
Yeah, keep us informed, 'cuz this would be a first as far as I know.

Seems like I remember there being some small print clause about this stuff that is State Farm policy. They've never been in the aircraft or aircarft parts insurance business.

Not trying to argue or anything here, just be sure. Sounds like you are taking the proper precautions. :)
 
cjensen said:
Yeah, keep us informed, 'cuz this would be a first as far as I know.

Seems like I remember there being some small print clause about this stuff that is State Farm policy. They've never been in the aircraft or aircarft parts insurance business.

Not trying to argue or anything here, just be sure. Sounds like you are taking the proper precautions. :)
Click to expand...

Sure would be nice it SF would cover----------

Dave, any possibility of getting the "chapter and verse" from your agent, so we can quote it to our agents??

Thanks again, Mike
 
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Ok I understand insurance can be a prudent measure to protect ones investment. But what exactly are you insuring against happening?

Has anyone ever made a claim in regards to building? Maybe a complete home engulfing fire would destroy the aluminum frame but what else? I doubt anyone is going steal your plane either partial or complete especially if it's in your garage. . .

I'm genuinely curious.
 
I'd be weary of:

1 - fire
2 - a tree falling on my shop

Reason 2 is enough for me - unless you live in a treeless area. :)
 
Farmer's Insurance

My insurance agent checked with Farmer's Insurance (who carries my home policy) regarding my Nine in the garage. Farmer's homeowners policies cover nothing that is "in assembly" ... whether its cars, airplanes, or .... canoes. They got burned on some home fires ;) where guys were rebuilding expensive cars. The then implemented the present exception ("in assembly") and it's SOP now.

Rupester
 
Builders Insurance

Guys after 20 years of selling homeowners Insurance before I sold that part of my agency and having had this same discussion with EVERY company I wrote homeowners for while being a builder too I can tell you that they ALL said no way!

If your Agent or anyone tells you it's covered -- get it in writing!

I have preached this for all 20 yrs because my Dad got told by his 30yr Agent he was covered for everything and when he died nothing was. That's what got me into this business.

It can happen with any company or agent but if you are told something that doesn't match the "normal" answer when it comes to insurance. GET IT IN WRITING!

Otherwise it's your word against the agent, who works for them and who do you think they will listen to?

Don't assume the agent knows all the answers, we don't.
Don't assume because they tell you that you are covered you are because they just may not know or they may just not want to tell you they can't and have you go somewhere other than them.

Be careful guys. We all have too much invested to not have written proof that we asked for it and were told we didn't need it.

If you don't want it fine, but for those that do. Get it or get it in writing that you don't need it. Then the agent is responsible to pay if they are wrong.

Best if it's on company letterhead with a signature too but email may hold up.
 
Homeowners insurance covering project build - not

Chad, Mike, Brian, Kevin, Rupester and Jim


Shown below is the email from my agent. Thanks for all of your responses. It seemed just a little too good to be true but the agent assured me it was. But as it turned out homeowner's insurance does not cover the project. I'm glad you all questioned it. At some point it gets to be quite a bit of $$s.

Thanks again
Dave Syvertson

--------------------------------------------
I spoke to My Underwriter again & she checked further & She was WRONG-there would not be any coverage for the parts NOW or the Plane once the engine is put in!

I have attached the part of your Homeowners Policy explaining it-since it would be moved on land-across the runway & it is built to carry people or cargo? see attached

Sorry but thanks for calling me back & you doing further checking so I could requestion her the EXPERT!
------------------------------------------
 
Insurance

No problem asking.

What's that old expression about the only dumb question........glad you asked.

A lot of folks get bad info all the time.
 
kevinsky18 said:
Ok I understand insurance can be a prudent measure to protect ones investment. But what exactly are you insuring against happening?

Has anyone ever made a claim in regards to building? Maybe a complete home engulfing fire would destroy the aluminum frame but what else? I doubt anyone is going steal your plane either partial or complete especially if it's in your garage. . .

I'm genuinely curious.
Click to expand...

Kids breaking into your house and vandalizing your work.
 
Nation air

I've got $70,000.00 on my rv7 cost $725.00 a year through Nation Air, EAA Falcon way out of sight!!! part of my plane @ home part @ the Airport. They do a good job! Pete:D
 
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