Insurance payout and 'totaling'

"Richard Kaplan" wrote in message ws.com...
"Ben Jackson" wrote in message
news:44Ltc.12956$n_6.5876@attbi_s53...

Their total cost is $policy_value-$salvage. As soon as $repair exceeds
that, it's cheaper to total. Consider how much of an aircraft's value is

This is why you should be careful to never insure your airplane for a hull
value less than something with which you would be happy in the case of a
declared total loss.

Imagine if your airplane is worth $100,000 and you insure it for $75,000 and
then suffer a $10,000 loss. They could total your airplane, pay you
$75,000, fix the airplane, and sell it for $100,000. In the process you
lose $25,000 plus your premiums; they gain $15,000 plus your premiums.

On the other hand, don't over insure it. The Mooney Service Center in
Stockton had a new Eagle in the hanger that had lost an engine and
glided back to the airport. The pilot overran the runway and bent the
wings between some trees. He wanted the insurance co to declare it a
total lose and write him a check but because the total coverage he had
on it was so high (higher than the insurance co wanted to pay) they
actually paid Mooney to put new wings on it (probably close to
$100,000 in itself) and repair all the gear, belly and flaps. Now he
has the same plane back but would rather have gotten the insurance
money and bought something else.

-Robert