Insuring your aircraft is an important topic that rarely seems to come up on aviation blogs. And yet, finding an appropriate value is important as to high of a value will increase your premiums while to low of a value will leave you exposed to not getting the full value of your aircraft in the event there is a total lost.
However and as pointed out in a recent column posted on GlobalAir.com by Darryl Abbey, the senior vice president of Salem Five Aviation Services, determining the correct value of your aircraft is not to difficult. Nevertheless, it will take some time along with some research and analysis to make the right decision.
Darryl begins by noting that the Aircraft Blue Book and Vref are two very useful sources for helping to determine an aircraft’s initial value and from there its a matter of determining the value of various variables for your aircraft along with finding out what the current market is like for your aircraft. Coming up with an accurate value is also important because reputable insurance companies will not want to overvalue an aircraft nor with they want to undervalue one by more than 10% to 20% below the average value of similar aircraft.
Thus and if you are facing an insurance renewal in the near future, Darryl’s column is well worth reading.