Kirk,
Who actually reads these things? Insurance policies are boring and there is no plot.
But you're absolutely right. It's important to read the policy carefully to understand exactly what you're paying for and not getting for all that money.
My AIG aviation policy is for AGREED VALUE. The term, agreed value is in bold-type which means it's defined. So I flipped to the definition of AGREED VALUE and it states:
"Agreed Value" means the amount shown (in my case $24,000) plus the amount I have actually paid, up to 30% of the agreed value, for additional equipment and modification of my aircraft provided I tell the insurance company, in writing, of the additions/modifications and pay the additional premium for them when due.
I guess that potentially answers the question about installing $10,000 of fancy avionics in your 150. It might only be covered up to $7200 (30% of $24k) and you better tell your agent or company it's in there and prepare to pay more premium$$.
