Insuring a salvaged airplane

[Dogsbody]

I am looking at buying a project from an insurance co. I was talking to insurance today and they mentioned that aircraft that are salvaged may not be able to be covered? My broker started talking about how autos get a branded title and aircraft are like that. I have never heard if this before. I have a nationally known broker and they have been great.
Since the FAA paperwork does not mention that an aircraft is sold as parts, pieces, just a data plate, or whole and flying where does insurance come into play. Crap now I have to worry about not getting insurance on top of passing my medical, unintentionally busting a FAR, or a pop up TFR, and the future loss of 100LL.
Anyone have experience insuring an aircraft purchased as salvage and rebuilt? Any aircraft insurance gurus here?
Thanks,
Dave

[Tom S-7S]

My Rans S7S was totaled by the tornado at sun n fun in 2011. I bought the salvage rights back through Chartis (AIG underwriter). The plane was rebuilt and when I called Chartis back to pick up the insurance again, they didn't hesitate. In fact, my rates went down for the same coverage as the first time...

Tom Chapman
San Antonio

[d.grimm]

I bought my Vagabond as a wreck from AIG.
My first Vagabond burned up in my garage with no insurance on the
plane. Homeowners doesn't cover boats or airplanes, hard lesson.
Insurance on projects is cheap, buy it.
State wanted tax and registration until I could prove I bought salvage.
Keep all your receipts. Insurance company never said boo when I switched
From non- flying to flying status. Make sure the Registration hasn't been cancelled.
Have Fun,
Dave

[Hafast]

My Rans S7S was totaled by the tornado at sun n fun in 2011. I bought the salvage rights back through Chartis (AIG underwriter). The plane was rebuilt and when I called Chartis back to pick up the insurance again, they didn't hesitate. In fact, my rates went down for the same coverage as the first time...

Tom Chapman
San Antonio

Just an FYI, Chartis is not an underwriter for AIG, they are one in the same. AIG Aviation Division changed their name to Chartis Aerospace a few years ago. How do I know? My better half has been a senior claims adjuster for them for over 17 years, she may have handled your claim.

[Rob]

Anyone have experience insuring an aircraft purchased as salvage and rebuilt? Any aircraft insurance gurus here?
Thanks,
Dave

My Supercub was totaled by Avemco twice. Once wrecked, and once hailed to death. Both times I got the plane back and rebuilt, and both times they were happy to see me come back. I think you got bogus information. I know more than one person that buys and rebuilds wrecks and I know several people who have bought airplanes from the rebuilders with zero problem insuring them.

Take care, Rob

[obxbushpilot]

I would not hesitate to buy a salvaged wreck. When the plane is deemed airworthy, after repairs are performed, it is as good as it needs to be in the eyes of the FAA.

My insurance company allows you to state the replacemnt value of the plane and they pay you that (insured value) if the plane is wrecked. So if you own the plane and you want to insure it for $50k they will pay you $50 K even if the plane is only worth $10k. Your premium is based on the the insured value combind with your experience. So; if you insure a $10k airplane for $50k, your premium will cost you more to make up the diference in the insured value.

The only area where you may have some trouble with a repaired wreck is financing. The finance company may not lend you as much (or anything) because the plane will inevitably be worth less (damage history). If you were to walk awy from the loan and they acquire the plane through a repo, it has to be worth at least what you finance the plane for.

[hotrod150]

My C150/150TD was wrecked in Alaska back around 1995 or so, & didn't fly again until 2007 after a complete rebuild. The crash report is on file with the FAA/NTSB, I know because I looked it up online. The only issue I've had insuring it was a case of mistaken identity when I had a hard time convincing the insurance company it was a tailwheel conversion.

[bat443]

I have a Cessna 180 project setting in my garage currently insured through Avemco for non movement, $45 thousand hull value, no liability, runs about $350 per year. Ten years or so ago I had another 180 I purchase used with a history of 3 ground loops, 2 left and 1 right, plus flipped over 1 time by a thunder storm while tied out on floats. Avemco didn't even ask if it had damage history. Just wanted to know my stated hull value.