[Username Protected]

Hi all,

My insurance underwriter (London) is asking for justification/appraisal to consider an increase in hull value on my Phenom. I was attempting to raise the hull value by about 20%, which I think is in line with market.

Anyone know how to provide something like this to them? Do Phenom brokers perform this service as a courtesy? Are there other firms who specialize in this?

[Username Protected]

Asset Insight is a very reputable appraiser. They have an excellent track record with tax cases and they are independent.
https://www.assetinsight.com/aviation-asset-valuation/

[Username Protected]

Hi (Username Protected)-
I think (Username Protected)'s reference is spot on. We have found over the last 12-18 months an extreme disconnect with underwriting companies and their view on the pre-owned aircraft market. What I mean by that is - you have to be living under a rock to not know that aircraft values have been artificially inflated due to low inventory levels across many different platforms. That said because insurance is an agreed/stated value policy the objective is to always keep your hull insured for it's current market value. Well in these times that market value is up - significantly - and in some cases approaching 20-40 percent (depending on the platform you operate). Insurers have been really pushing back on increased valuation/insured value requests citing 'blue book' or vref values which they use for reference. Unfortunately those reference points don't take into account current market conditions (inventory levels) and inflated asset values. I would definitely get a 'formal' valuation done with a reference as (Username Protected) noted. In a lot of cases the insurer will not meet what you feel is it's current value but formal documentation such as noted will certainly help you get a higher insured value. We (as brokers) have been banging our heads against the wall quite often over this topic! Good luck to you~

[Username Protected]

As with many things that involve insurance, I never understand their motivations. I'm more than happy to pay the same multiple on the increased hull value, and it seems like increasing the hull value would just allow them to sell "more" policy, thus earning them more.

It's like if any of my cus(Username Protected)ers came to me and said they wanted to buy 20-40% more of whatever they were already buying at the same price, it seems like a no brainer that we'd want that.