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Insurance, Business and Financial

After the tornado is too late
Past Forum User
I recently spent much of a day walking through what little is left standing (intact) at the Breckenridge, TX, airport after last week's tornado. The havoc to airplanes, hangars, classic cars, boats and other stuff that was damaged or totaled was depressing, as was the damage to the Addison and Kittyhawk airports in the Dallas area.

After hearing some of the tales of woe, I was again reminded of the need to maintain hull insurance coverage at the fair market value of the airplane, including improvements and upgrades installed.

Say for example that you install $25k worth of Garmins, STec's, P-Ponks, Paint, Interior or whatever in your $100k Skywagon (that you have insured for $100k) but you don't adjust your hull coverage for the increased value. If the tornado rolls it into a ball, like the pristine 185 that was smushed in BKD (that you may have seen on the nightly news) the insurance company can declare it a total loss, write you a check for the amount of the insured value ($100k) and sell what's left of your airplane to the highest bidder.

If they recover $40k (from sale of engine, prop, avionics other salable items) their net loss on the claim is $60k, and your loss is $25k. If you have been prudent and bumped the hull value to $125k, they have to write you a check for that amount less any deductible. The piddling amount of increased hull premium you may pay will look pretty small when you're standing on the ramp looking at the remains of what used to be a fine airplane.

Two Skywagons, both securely parked in their hangars were damaged, one probably a total.