Top 5 Tips For Buying Homebuilt Aircraft Insurance

Table of Contents

• Introduction
• Tip #1: Understand the Different Coverage Options
• Tip #2: Find an Insurer Who Specializes in Homebuilts
• Tip #3: Document Your Build Meticulously
• Tip #4: Be Realistic About Your Pilot Experience
• Tip #5: Take Advantage of Safety Programs
• Conclusion

 

There's something undeniably special about building your own aircraft. The countless hours spent in the workshop, the careful selection of every component, and the sweat equity poured into the project all culminate in a sense of accomplishment that few other endeavors can rival. When it's finally time to take your creation to the skies, the feeling is nothing short of exhilarating.

 

But owning a homebuilt aircraft isn't just about the thrill of the build and the joy of flight. It comes with a unique set of responsibilities – and finding the right insurance is a critical one. Think of it this way: you wouldn't dream of launching your handcrafted machine without a thorough preflight check, right? The same level of care applies to protecting your investment.

 

Unfortunately, securing insurance for a homebuilt aircraft can be trickier than for a standard factory-made plane. Not every insurer understands the ins and outs of experimental aircraft, and that can lead to limited coverage options or frustratingly high premiums. That's why it pays to do your homework and find a company that gets what makes your aircraft and your passion for flying so unique.

 

Tip #1: Understand the Different Coverage Options

 

Insurance jargon can be confusing for anyone, let alone when you're dealing with the specialized world of homebuilt aircraft. So, before you start getting quotes, let's break down the key types of coverage you'll need to consider:

• Liability Insurance:  This is the absolute foundation of any aircraft insurance policy. It's designed to protect you financially if you're found responsible for an accident that causes bodily injury or property damage to others. Think of it as your safety net if things go wrong.
• Hull Insurance: This covers physical damage to your aircraft itself. Unlike your trusty car insurance, hull insurance can be customized for various scenarios – whether your plane's parked in the hangar, taxiing, or soaring through the air.
• Builder's Risk Insurance: While not a must-have for flying your aircraft, this coverage is worth considering if you're still in the building phase. It protects your investment during construction against things like fire, theft, or accidental damage.

The right mix of aircraft coverage will depend on your specific aircraft, how you fly it, and your individual risk tolerance. Don't just go for the cheapest option –  make sure you understand what you're paying for and what those policies will actually cover if you need to file a claim.

 

Tip #2: Find an Insurer Who Specializes in Homebuilts

 

You might assume that any company offering aviation insurance can handle your homebuilt. While technically true in some cases, it's far from ideal. Not all insurers are created equal when it comes to understanding the nuances of experimental aircraft. Working with a specialist gives you several key advantages. 

 

They'll likely have a deeper understanding of how your aircraft was built and the types of modifications common in homebuilts. This translates into smoother underwriting and potentially more flexible coverage options. Second, an insurer specializing in homebuilts is better equipped to assess your pilot experience fairly, ensuring you get the right protection at a premium that reflects your skills. Remember, it's about finding a company that sees your homebuilt as the unique and meticulously crafted flying machine it is, not just another airplane.

 

Tip #3: Document Your Build Meticulously

 

Imagine this: you've just finished your dream aircraft, and it's time to find insurance. You contact a company, and they ask for details about your build process. Problem is, you only snapped a few blurry photos along the way, and your build log is more of a collection of scribbled notes than a detailed record. This is where thorough documentation can make or break your insurance experience.

 

Think of your build documentation as proof of your craftsmanship and attention to detail.  Detailed records, photographs, and a comprehensive build log instill confidence in insurers. It demonstrates a commitment to safety and meticulous construction practices.  When assessing your application, insurers will want to see things like receipts for materials, a clear outline of any modifications, and evidence of compliance with FAA construction standards. 

 

The more information you can provide, the better positioned you'll be to secure favorable coverage terms and premiums. A well-documented build history can also be invaluable if you ever need to make a claim, providing clear evidence of the work completed and the value of your aircraft.

 

Tip #4: Be Realistic About Your Pilot Experience

 

Insurers will carefully examine your flying experience, especially if you're a first-time homebuilt aircraft owner. Don't get discouraged if you don't have thousands of hours logged or a string of fancy ratings. The key is to be upfront about your experience and demonstrate your proficiency. Insurers may look at factors like your total flight hours, hours in similar aircraft types, any type ratings you hold, and your recent flight activity. 

 

If you're relatively new to flying or transitioning from different types of aircraft, be prepared to discuss how you'll mitigate the risks. This could involve additional training, seeking mentorship from an experienced homebuilt pilot, or initially limiting your flights to less challenging conditions.

 

Tip #5: Take Advantage of Safety Programs

 

Many insurers appreciate a proactive approach to safety. Participating in safety programs, attending recurrent training, and actively seeking to improve your skills can make a positive impact on how insurers view your application. Often, insurance companies offer premium discounts or rewards for completing safety-related courses or participating in recognized safety programs.

 

Beyond potential cost savings, continuous learning demonstrates your commitment to being a responsible and safety-conscious pilot. A dedication to safety benefits not only you and your aircraft but the entire homebuilt aviation community.

 

Avemco Can Help

 

Choosing the right insurance for your homebuilt aircraft comes down to finding a balance between comprehensive coverage and a price that fits your budget.  Securing adequate protection allows you to focus on what matters most – the joy of flying your creation.  Remember, it's crucial to work with an experienced insurer who specializes in experimental aircraft.  

 

If you're looking for an insurer who combines in-depth homebuilt aircraft expertise with a passion for aviation, consider Avemco Insurance Company. Our aviation insurance specialists can provide personalized guidance and tailored insurance solutions, giving you the peace of mind you deserve as you take to the skies in your handcrafted aircraft. Start your homebuilt insurance quote today.

 

 

 

Key Takeaways

• Understand Coverage Types: Liability, hull, and builder's risk insurance are essential components of protecting your homebuilt aircraft.
• Specialization Matters: Insurers who focus on homebuilt aircraft provide better understanding, fairer assessments, and more flexible coverage options.
• Documentation is Key: Thorough records and photos of your build process increase your insurability and can help with claims.
• Experience Counts: Be honest about your flying experience and consider ways to demonstrate proficiency (training, mentorship) to insurers.
• Safety Pays Off: Participating in safety programs and ongoing training can positively impact your insurance premiums and overall flying skills.