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I insured my Cessna 152 for $30K and the insurance company didn't flinch. I think it would probably sell on the market for $27-28K if I tried but I certainly have more than $30K into it with all the stuff I've done to get it mechanically safe and (just a little bit more but not much) prettier.

I just called AOPA and the account manager confirmed that the 5% AOPA discount was applied. She said the rate went up for most everyone.

I recently ran into a similar situation.

The hull value on my 172 was 50K.

I thought to myself, "50K won't buy another one as nice as this one."

The Vref value was 47K
AIG went to 57.75K without a problem.

To go any higher, they would have required supporting documentation.

I'm no insurance expert, and hopefully someone more knowledgeable will jump in here. But I seem to recall potential pitfalls with valuations in insurance.

A similar thing occurs with classic cars. Is it a 20-year old Chevy or a classic Corvette? If it's the latter, you call the company, cite the Bloomington Gold award and get it insured for $50k.

Now, is that "stated value" or "agreed value"?

As I understand it, 'Stated Value' basically puts a cap on what the insurance company will pay out. They will pay no more than the stated value. They usually pay out the actual cash value which is, you guessed it, the average cost of a 20-year old Chevy.

'Agreed Value' is far less common (and understood). Insurance companies are less likely to offer them because it creates a fraud potential - one could overinsure their vehicle and then have a loss and come out ahead. Insurance is supposed to cover a loss, not advance your position.

Many insurance adjusters will say a stated value policy will pay out the stated amount. They may be unaware of how it really works or even that 'agreed value' is an alternative.

In short, read your policy v-e-r-y carefully.

(And as I said earlier, I hope someone with actual knowledge and experience can post on this subject).

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$$.

A stated value policy simply means the carrier will pay the full (stated) coverage amount for the airplane, or car, or mobile home, in the event it is a total loss. No hassles with Actual Cash Value. If AIG has a 30% additional coverage stipulation for added value, then all the better. I'm unaware of any aviation insurance carrier selling an actual cash value policy (at least on small private aircraft).

Dan,
Happy 400th post! ;-)

Holy Cow Eric! You're right...I didn't realize I'm such a blabber mouth <img src="/ubbthreads/images/graemlins/grin.gif" alt="" />

You talkin' TO me, or ABOUT me??