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Homebuilt Aircraft Insurance

Construction Endorsement

CONSTRUCTION/RECONSTRUCTION ENDORSEMENT

We agree with you to amend portions of your Policy as follows:

I. Definitions 6, 11, 12 and 15 of DEFINITIONS USED IN THIS POLICY are replaced by the following:
6. "Commercial purpose" means construction or reconstruction of your insured aircraft for a purpose other than for your personal, family or household use. This Policy does not cover an insured person's construction or reconstruction of the insured aircraft as a business or for sale to others;
11. "Insured aircraft" means the aircraft shown in Item 4 of the Data Page. Included are the materials which you have purchased to construct or reconstruct it. Also included is up to $15.00 per documented hour for the value of any labor. Not included are tools, jigs and any materials for which you do not have a receipt or other proof-of-purchase. (All reference to additional aircraft or replacement aircraft in the Policy is deleted.);
12. "Insured person" means you, your spouse and your children;
15. "Occupant" means a person in your insured aircraft while it is in motion or in flight.

II. The following Exclusions are added to EXCLUSIONS APPLYING TO ALL COVERAGES:

This Policy does not cover bodily injury, property damage or loss:
  • Which arises out of:
    a. defective or inadequate workmanship;
    b. maintenance or lack of maintenance;
    c. defective or inadequate design, plans or materials;

  • When your insured aircraft is in motion (This supersedes any provision in your Policy which may imply that it can be used in flight or in motion);
  • Which occurs prior to the delivery of your insured aircraft to you;
  • After your insured aircraft has received its final inspection by the FAA for the purpose of the issuance of its airworthiness certificate or, if your insured aircraft has a Standard airworthiness certificate, once it has been certified for flight and issued an annual (periodic) inspection (you must apply for, and be issued, a different Policy to provide coverage at that time).

    III. COVERAGE A—LIABILITY INSURANCE FOR YOUR INSURED AIRCRAFT is changed to read as follows:

    OTHER INSURANCE

    When there is other liability coverage for bodily injury and property damage covered by this Insurance, this Insurance shall be excess to it.

    IV. COVERAGE B—INSURANCE FOR DAMAGE TO YOUR INSURED AIRCRAFT is changed as follows:

    A. Limit of Liability is changed to read:
    Our Limit of Liability for loss is the original cost to you of your insured aircraft. However, it shall not exceed the "insured value" less the "deductible" shown on the Data Page.
    B. Items 1 and 6 of Terms of Payment of Loss are replaced by the following:
    1. PAYMENT
    We will pay for loss in money. Our payment, subject to the Limit of Liability, will be for the original cost to you of your insured aircraft (or materials). Appreciation is not included.

    We will pay up to $15.00 for each documented hour of labor to assemble or reconstruct your insured aircraft.
    6. OTHER INSURANCE
    When there is other insurance for a loss covered by this Insurance, this Insurance shall be excess to it.
    C. The following is added to Terms of Payment of Loss:
  • PROOF OF LOSS
    You must supply us with a written proof of loss. This shall include a receipt or other proof of the amount of payment made by you for your insured aircraft.

    V. COVERAGE C—INSURANCE FOR MEDICAL EXPENSES and INSURANCE FOR YOUR USE OF NON-OWNED AIRCRAFT are deleted from your Policy in their entirety.

    To read the full policy click here.

    NC-108001