One of the first real decisions you face when insuring your aircraft is whether to add hull coverage. You already know you need liability. But hull? That's where owners start doing math, comparing the annual premium to the odds something actually goes wrong.
Hull insurance isn't cheap. The difference between a liability-only policy and one that includes hull can run a few thousand dollars a year. So let's walk through what hull coverage actually does, when it makes sense, and what happens if you skip it.
What hull insurance covers
Hull insurance pays for physical damage to your aircraft: accidents, hard landings, gear-up incidents, hail, hangar fires, avionics theft, and even another aircraft taxiing into your wing. Liability-only coverage does none of that. If something happens to the plane and you don't carry hull, the repair bill is entirely on you.
One thing owners sometimes misunderstand: hull insurance does not cover engine failure from mechanical causes. If your engine fails from normal wear, that's a maintenance issue. But if that failure leads to a forced landing that damages the aircraft, the airframe damage is typically covered.
Agreed value versus actual cash value
When you add hull coverage, pay attention to whether the policy is written on an agreed value or actual cash value basis. Most aviation policies use agreed value, and there's a good reason for that.
With agreed value, you and the insurer set a hull value at the start of the policy. If the aircraft is totaled, you get that number, no depreciation argument. With actual cash value, the insurer can factor in depreciation, producing a settlement lower than what you'd need to replace the plane today.
One related risk: if you underinsure the hull, a repairable aircraft can get written off as a total loss. Insurers compare repair costs against your declared hull value. If repairs approach or exceed that figure, they may cut a check for the agreed value and take the plane. Set the hull value based on what you'd actually pay to replace the aircraft at current market prices, not your original purchase price.
When liability-only makes sense
Some owners skip hull and it isn't always the wrong call. The general test is whether you could absorb losing the aircraft without real financial pain. If the plane represents a small fraction of your net worth and replacing it out of pocket wouldn't strain you, self-insuring the hull is defensible.
If you financed the aircraft, you likely don't have that choice. Most lenders require hull coverage as a loan condition, with themselves listed as a loss payee.
The other scenario: older aircraft with low hull values where the annual hull premium is a significant percentage of the plane's worth. On a $15,000 aircraft, that math can shift. It varies by situation.
The safety argument pilots rarely mention
There's a less obvious reason to carry hull insurance. In an emergency, thinking about the cost of damaging your airplane is the last thing you want on your mind. When hull coverage is in place, the airplane is the insurance company's problem if things go wrong. That mental separation matters. You make the safest decision for you and your passengers, not the one that might spare the airframe.
If you want to get a quote for single-engine aircraft insurance that includes hull coverage, SkyWatch lets you get a real number in minutes. You can also explore broader aircraft insurance options to find what fits your situation.
Frequently asked questions
Does hull insurance cover damage caused by someone else at the airport?
Yes. Your hull coverage pays for physical damage to your aircraft regardless of who caused it. Your insurer can then pursue the responsible party for reimbursement. Relying on another person's liability insurance to cover your aircraft is a slow and uncertain process.
What is the difference between agreed value and actual cash value in hull insurance?
Agreed value means the insurer pays the hull value set at the start of the policy, with no depreciation deduction, in the event of a total loss. Actual cash value allows the insurer to factor in depreciation, which can produce a lower settlement. Most GA pilots choose agreed value for this reason.
Can I get hull coverage as a low-time pilot?
Yes, though the premium will be higher in your first year. Insurers price hull coverage based on total flight time, time in type, ratings, and aircraft complexity. As you build hours, premiums typically drop at renewal.
Is there a way to reduce hull insurance costs without dropping coverage entirely?
A few options: choose a higher deductible to lower the annual premium, set a hull value that accurately reflects current market prices, or consider a six-month policy if you fly seasonally. Some owners look at ground-only or not-in-motion coverage as a middle ground, though pricing varies.
What happens if I underinsure my aircraft on the hull value?
If repair costs approach or exceed your declared hull value, the insurer may write off the aircraft as a total loss and pay only the agreed value, even if the plane is repairable. They then take ownership for salvage. Setting the hull value accurately prevents this outcome.
