Insurance pro rating

luvflyin

luvflyin

Touchdown! Greaser!
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Luvflyin
You have prop strike. It trashed the engine, overhaul is needed. It was at TBO anyway. Does the Insurance company blow it off because it needed it anyway. Yeah I know TBO isn’t a hard requirement, Part three digit operations excepted. But do they pro rate their coverage based on hours on the engine?
 
luvflyin said:
You have prop strike. It trashed the engine, overhaul is needed. It was at TBO anyway. Does the Insurance company blow it off because it needed it anyway. Yeah I know TBO isn’t a hard requirement, Part three digit operations excepted. But do they pro rate their coverage based on hours on the engine?
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Yeah I believe they pro rate the overhaul.


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Most of the time they pay for tear down and inspection plus replacement of parts needed due to the strike. They do not pay for parts replaced do to wear. I.e. You will have a hard time getting new jugs from them.
 
The term of art is "betterment." The insurance company will not let you leave the situation better than you came into it. Can be a real surprise to folks who find themselves with a prop strike, etc. and an engine/prop that is nearly timed-out (per the MFG).
 
So as the amount of hours in the engine/prop increases the amount they are willing to pay out decreases, does this mean that the amount they bill you for your premium also decreases as the hours on the engine increase??

 
unsafervguy said:
Most of the time they pay for tear down and inspection plus replacement of parts needed due to the strike. They do not pay for parts replaced do to wear. I.e. You will have a hard time getting new jugs from them.
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^^that
 
subscribed, this seems like a very interesting thread
 
Said another way, if you have a prop strike on your timed-out engine it would be very unlikely they would buy you a factory new engine & prop, and send you on your way.

However, I think if you put the airplane in a smoking crater (or otherwise total it), they will pay full hull value to you (or your estate).
 
Let'sgoflying! said:
Said another way, if you have a prop strike on your timed-out engine it would be very unlikely they would buy you a factory new engine & prop, and send you on your way.

However, I think if you put the airplane in a smoking crater (or otherwise total it), they will pay full hull value to you (or your estate).
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So if you have a high time engine, when it comes to crashing, you're saying "Go big, or go home"? :D
 
Insurance pays for the tear down, you pay for the rest of the overhaul. I had a prop strike, had I the money I would have probably gone this route. Cheaper than an overhaul outright.
 
I've brought this up previously somewhere, but if I have a retract and I have an engine failure on departure, am I better off financially by putting the plane back down on the runway with the gear up or the gear down?
 
Challenged said:
I've brought this up previously somewhere, but if I have a retract and I have an engine failure on departure, am I better off financially by putting the plane back down on the runway with the gear up or the gear down?
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There are some parts of insurance that do not quite make sense if you think too hard about it.

Engine implodes enroute.
A good pilot finds concrete, saves the airframe and pax.....and he pays. (for the engine)
A sorry pilot balls it up in a ditch....and he gets a check!
 
Challenged said:
I've brought this up previously somewhere, but if I have a retract and I have an engine failure on departure, am I better off financially by putting the plane back down on the runway with the gear up or the gear down?
Click to expand...

Paging @Henning to the nearest Courtesy Phone... Paging Mr Henning... :D
 
James331 said:
So as the amount of hours in the engine/prop increases the amount they are willing to pay out decreases, does this mean that the amount they bill you for your premium also decreases as the hours on the engine increase??

Click to expand...

You could, in theory, lower the coverage as the engine time came off, knowing the aircraft isn’t worth what it was with a new engine on it.

Doesn’t change the premium much, but it would lower it.

Runs into problems with whether the aircraft is “totaled” and such, though, if something happens.
 
bradg33 said:
The term of art is "betterment." The insurance company will not let you leave the situation better than you came into it. Can be a real surprise to folks who find themselves with a prop strike, etc. and an engine/prop that is nearly timed-out (per the MFG).
Click to expand...

A guy I did a fabric job for ran into that problem when the plane got hailed on. Its last fabric/paint was done 20ish years ago and the insurance company viewed it as being out of life, per the manufacturer. The only thing they paid for were the areas damaged by the hail and any associated underlying damage. He ended up having to pay for about 3/4 of the job himself.

In the beginning I think he went a little wild and wanted to replace everything thinking the insurance company was going to pay for it all.
 
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