Bird Strike - Hull Insurance Rates?

[rocketflyer84]

Long story short a colleague of mine recently had a mid-air encounter with a bird. Flight landed safely without issue. Likely not the same for the bird. Impact caused some minor damage to the leading edge of the pilot-side wing, although with no detectible change in flight performance.

The damage is quite minor... nothing like these images that circulate with bird bits everywhere and a huge wound to the aircraft. If it was a car a body shop would just pop out the ding in 5 minutes, but of course planes are not cars and so there's a bit more expense involved and thus a minor insurance claim is in the works.

Does something like a bird strike typically impact future hull coverage premiums? One the one hand one has made a claim therefore rates could go up. On the other, a random birdstrike is essentially an act of God (as the insurance companies like to say) that can and does happen to anyone, and having one doesn't make you more or less likely to have it happen again.

Curious if anyone else has had experience on this front.

 

[Henning]

No, besides, if you look in the policy, you likely have to declare the damage anyway. No, natural phenomenon like bird strikes and storm damage are figured into the actuarial costs. As long as you fall in norms, this shouldn't have a direct effect on rates.

 

[azure]

No, besides, if you look in the policy, you likely have to declare the damage anyway. No, natural phenomenon like bird strikes and storm damage are figured into the actuarial costs. As long as you fall in norms, this shouldn't have a direct effect on rates.

I don't recall seeing any requirement like that in my policy. Why should you have to declare the damage if you don't submit a claim?

 

[Henning]

I don't recall seeing any requirement like that in my policy. Why should you have to declare the damage if you don't submit a claim?

Because damage alters the value of the insured property.

 

[azure]

Because damage alters the value of the insured property.

Okay then I must be missing something. So I don't declare the damage, and continue to insure my plane for something above what it's actually worth. Why does this matter to the insurance company? The premiums are computed based on the insured value not the actual value. If I was willing to pay the premium, I could insure my Cardinal for $200,000 hull value if I wanted.

I'm not an insurance-savvy owner -- as is probably obvious. So please, educate me.

 

[N801BH]

 

[flyingron]

I had a bird strike resulting in an insurance claim. As near as I can tell it had no effect on anything.

 

[Norman]

Because damage alters the value of the insured property.

I call BS on that.

 

[TommyG]

I call BS on that.

Think about anything you have bought, and were told there was damage. You usually want it for less. House had flood damage, car was in an accident. Even those things have been repaired, most people aren't going to pull price or the same price as a similar item that has no damage history.

 

[Henning]

Okay then I must be missing something. So I don't declare the damage, and continue to insure my plane for something above what it's actually worth. Why does this matter to the insurance company? The premiums are computed based on the insured value not the actual value. If I was willing to pay the premium, I could insure my Cardinal for $200,000 hull value if I wanted.

I'm not an insurance-savvy owner -- as is probably obvious. So please, educate me.

Just read your policy, if the verbage isn't there, you don't have to concern yourself. In some states it exists, in others it may not, I am not up on all the state's current rules anymore.

 

[timwinters]

Think about anything you have bought, and were told there was damage. You usually want it for less. House had flood damage, car was in an accident. Even those things have been repaired, most people aren't going to pull price or the same price as a similar item that has no damage history.

Apples...oranges...in the discussed example, the insurance company had it before it was damaged.