Paul Heinrich
PARTNER
Illinois & Wisconsin
My PA12 project is nearly finished and we are preparing for its first flight. Before then I need to get her insured and I hope someone here can provide some guidance as to where to get it and how to set a reasonable Hull value.
Is it reasonable for me to want the Hull Insurance to cover the actual replacement cost of everything in the event of a total loss? And how does one figure its replacement cost?
Or is it based on market value of a comparable airplane? As many of us are aware, there is a big difference between what I have in it as opposed to what it would bring on the open market.
First off, it’s an experimental category; built from the ground up using all new parts mostly from Univair. The engine is from Cubcrafter; a lightweight Lycoming XO-340 180hp with a 3-blade Catto propeller. It has flaps, 18 gear and tail, skylight, GWI, extended baggage, float fitting, glass instrument panel, etc., etc., etc.
I know that there are kit manufacturers out there that charge less for a “complete” PA12 Kit, but if I had to purchase again all the exact parts I did purchase at today’s prices it would total somewhere between $130-150,000. That’s just in the bare parts alone. So, the cost of the parts is fairly easy to calculate—it’s the labor cost that is difficult to figure.
How many hours would an experienced builder expend building an experimental PA12 clone starting from a new bare fuselage? 1,000? 2,000? 3,000? And if it were even possible to find an experienced builder with that much time on their hands, what labor rate would an insurance company think reasonable?
Is it unreasonable insure the plane for $200-250,000?
Any personal experience, insight, and guidance about Hull Insurance that you can provide would be helpful. Thanks in advance.
Is it reasonable for me to want the Hull Insurance to cover the actual replacement cost of everything in the event of a total loss? And how does one figure its replacement cost?
Or is it based on market value of a comparable airplane? As many of us are aware, there is a big difference between what I have in it as opposed to what it would bring on the open market.
First off, it’s an experimental category; built from the ground up using all new parts mostly from Univair. The engine is from Cubcrafter; a lightweight Lycoming XO-340 180hp with a 3-blade Catto propeller. It has flaps, 18 gear and tail, skylight, GWI, extended baggage, float fitting, glass instrument panel, etc., etc., etc.
I know that there are kit manufacturers out there that charge less for a “complete” PA12 Kit, but if I had to purchase again all the exact parts I did purchase at today’s prices it would total somewhere between $130-150,000. That’s just in the bare parts alone. So, the cost of the parts is fairly easy to calculate—it’s the labor cost that is difficult to figure.
How many hours would an experienced builder expend building an experimental PA12 clone starting from a new bare fuselage? 1,000? 2,000? 3,000? And if it were even possible to find an experienced builder with that much time on their hands, what labor rate would an insurance company think reasonable?
Is it unreasonable insure the plane for $200-250,000?
Any personal experience, insight, and guidance about Hull Insurance that you can provide would be helpful. Thanks in advance.