There are many aircraft in the insurance world that are considered “difficult to insure”.  There are many reasons that an aircraft may fall into that category that I will cover in this article.  Before purchasing an aircraft, insurance should always be considered.  Get the insurance quote in place first and then make the purchase.  That way you are comfortable with the coverage training and price before you buy the aircraft.

With difficult aircraft you may find that even though you can obtain insurance, there may be limitations on what you can purchase in your policy.  There may be longer than expected training requirements, higher deductibles, no open pilot warranties, lower liability limits, annual recurrent training requirements, age limitations, parts schedules and other restrictions.  These are all things that need to be weighed into your aircraft purchase decision.

What could make an aircraft fall into a “difficult to insure” category?  Many things such as a high loss ratio, high wing loading, older aircraft (we will touch more on this in a moment), aircraft not being manufactured anymore, aircraft where parts availability may be in question, aircraft that lack approved training facilities and or equipment such as simulators, rare aircraft, one of a kind aircraft, many experimental aircraft, just to name a few.   These are all considerations that come into play when insuring an aircraft.

Some aircraft that fell into the “difficult to insure” category have also fallen out.  The Cessna 210 and 206 models were very popular with drug runners back in the 80’s.  Chances are, if you left one unattended by the Mexican border with no prop lock, it would be gone.  The Piper Malibu had difficulties and a very high loss ratio when it first came out.  Later it was determined that a simple step in training eliminated the cause of the losses.  These are just 2 examples of aircraft that were difficult to insure that are not anymore.  So just because you heard in the past that an aircraft had problems, don’t always assume it still does.  Check with your insurance agent, most likely, they will know.

I wanted to touch a bit on older aircraft as that is what inspired me to write this article.  I had a client referred to me that was purchasing a 1969 Lear 24B.  He said he had contacted several insurance brokers and all had said that only liability coverage was available but no hull.  This client could not afford to self insure the hull.  So I asked about the aircraft.  I found out it was a low time airframe, low time engines and had an excellent maintenance history.  Upon disclosing this information to several underwriters, I was able to come up with a quote that included hull coverage.  I touched on this in my last article; make sure your agent is asking questions and putting your risk together properly.  Ask to see the quote they are going to send to the markets and be comfortable with how they are representing you and your aircraft.  If you are not comfortable, find another agent.

Our job as agents is to help place your risk.  Sometimes we need to go well beyond just submitting quote request and help solve the fears that some underwriters may have.  Find a training program, finding parts availability, looking into an aircraft’s history and maintenance, and knowing who to and who not to present your risk.  Knowing you, your aircraft, our market and underwriters taste is our job.

Many “difficult to insure” aircraft are also very “desirable to own” aircraft.  Aviation has a very rich history and there are a lot of aircraft out there that fit the personality and taste of the person that wants to buy it.  If that fit is a difficult to insure aircraft, make sure a little extra effort is put into the marketing of your insurance.  Don’t be afraid to ask your agent questions and know what they are presenting.

Rick Ross

President
leading Edge Insurance Agency