Build Insurance

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rdj

Well-Known Member
Did a search, but can't seem to find anything on the forums about builder's insurance. Has anyone ever bought it? EAA offers a 'free quote' online through Falcon, but when I run through the forms it asks all sorts of non-pertinent questions like N-Number, airport based at, etc. None of the drop-down boxes offer anything like "Builders Insurance" as an option. Is it typically priced higher/lower than hull insurance? Is location irrelevant or is my California wildfire ground-zero location going to be a problem? I thought I'd ask the brain trust here to see what options are out there before contacting EAA. Thanks.

J Galt

Well-Known Member
Supporting Member
I got something like that for a project I bought through AOPA/Assured Partners Aerospace. I forget what it's called, "builder's risk" maybe? It covers the hull but it cannot be in motion under its own power. If you talk directly to an agent they should know what you need.

gtae07

Well-Known Member
Yeah it's called "builder's risk"; I have one of those policies on my project. Fairly reasonable given the insured amount, and it's a lot less than hull insurance for flight. I'm in hurricane country and it's still not bad.

rdj

Well-Known Member
Yeah it's called "builder's risk"; I have one of those policies on my project. Fairly reasonable given the insured amount, and it's a lot less than hull insurance for flight. I'm in hurricane country and it's still not bad.

gtae07, did you get it through EAA, a broker, or somewhere else? Nice to hear that it's less than hull even in risky areas.

Thanks J Galt, I wasn't even aware AOPA had "builder's risk". I belong to AOPA, EAA and SSA, but I've only ever seen the EAA advertisements mention project insurance. I'll give AOPA a try as well.

rdj

Well-Known Member
An update on this topic after some research, for anyone interested in "Builder's Risk" insurance in the U.S.. I inquired about Builder's Insurance via EAA, SSA and AOPA. They all offer the coverage, and they all seem to operate identically: they want you to fill out the online owner's info request which includes things like home airport ('garage' is not an option on the drop-down forms), pilot information such as total hours, hours in the last year, alternate pilots, and other info unrelated to sitting in a cleco'd fuselage making engine sounds. The brokers then apparently send this information to the underwriters with a 'ground only not in motion' hull coverage sort of request, which is all a "Builder's Risk" policy is. Naturally the brokers also want additional info such as the value of the 'parts pile', invoices documenting that value, the estimated value of the completed aircraft. and the expected date of completion (hah!). The coverage itself is quite reasonable, about $25/month for$50K coverage.

The killer for me is that because they all seem to underwrite the coverage the same way, they all want an N-Number for the aircraft. It seems that the N-Number is used as the ID for the policy. That requires reserving an N-Number with the FAA, which is fine by itself. However, in the great State of California, that triggers the state to inform the county that I now own an "airplane" that can be assessed property tax, and I can expect to spend many fine hours each year in the assessor's office explaining the reality of a "kit aircraft" to folks who have no idea what I'm talking about. Or so I've heard.

Oh well.

gtae07

Well-Known Member
Sorry, missed your earlier question. Try contacting Leah at Gallagher ([email protected]). I didn't need an N number and "detached garage" was an acceptable answer.