Hull coverage is the part of your aircraft insurance policy that covers physical damage to the plane itself. Not liability. Not medical payments. The actual aircraft. And yet, it's one of the areas where aircraft owners are most likely to have the wrong expectations going into a claim.
Here's what we see over and over: a pilot buys a policy, glances at the hull value, assumes it works like car insurance, and moves on. Then something happens, and the payout looks very different from what they expected. A little clarity upfront goes a long way.
Agreed Value vs. Actual Cash Value
The single most important thing to understand about hull coverage is how your aircraft's value is defined in the policy. There are two methods: agreed value and actual cash value (ACV).
With an agreed value policy, you and the insurer agree on the aircraft's value at the time you bind coverage. If there's a total loss, you receive that agreed amount, no depreciation applied. For most aircraft insurance holders, this is the smarter option. You know exactly what you'd recover if the worst happened.
Actual cash value works differently. At the time of a claim, the insurer determines what your aircraft was worth at that moment, accounting for depreciation, market conditions, and condition. You might insure your single-engine aircraft for $80,000, have a total loss, and walk away with $65,000 because the market shifted or the adjuster factored in wear and tear. That gap can be a real problem if you need to replace the aircraft.
Most owner policies available today offer agreed value, but it's worth confirming what you have before assuming.
What Hull Coverage Actually Includes
Hull coverage applies to physical damage to the airframe, engine, avionics, and equipment that's part of the aircraft. That includes damage from a hard landing, a hangar rash incident, ground collision, or a runway excursion, in addition to in-flight accidents.
It does not automatically include loose equipment, personal items in the cabin, or modifications you made after the policy was written. If you've upgraded avionics or added aftermarket equipment, those need to be reported and added to the insured value. Otherwise, you may be underinsured without realizing it.
In-Flight vs. Not-In-Flight Coverage
Some hull policies distinguish between in-flight and not-in-flight (also called ground) coverage. A not-in-flight policy only covers the aircraft when it's on the ground, which costs less but leaves you exposed to in-flight losses. Full coverage, which includes both, is standard for most aviation insurance policies for owners, but it's worth reading your declarations page to be sure.
The Deductible Factor
Hull coverage typically carries a deductible, often expressed as a percentage of the insured hull value or a flat dollar amount. A 10% deductible on a $100,000 aircraft means you cover the first $10,000 of any hull claim. That's not a small number, especially for partial damage repairs that might already cost $15,000 to $20,000.
When comparing policies, don't just look at the premium. Factor in the deductible relative to the hull value, and think about what level of out-of-pocket exposure you're actually comfortable with. You can get a quote and compare options directly to see how deductible choices affect your rate.
Keeping Your Hull Value Current
Aircraft values move. The general aviation market has seen significant price increases over the past few years, and a hull value you set three years ago may no longer reflect what your aircraft would cost to replace. Review your insured value at every renewal. If you've made improvements, get an updated appraisal or at minimum check recent comparable sales to make sure you're covered for what the aircraft is actually worth today.
Frequently Asked Questions
What is the difference between agreed value and actual cash value in aircraft insurance?
Agreed value means you and the insurer set a fixed payout amount when the policy is written, and that's what you receive in a total loss with no depreciation deducted. Actual cash value means the insurer determines the aircraft's market value at the time of the claim, which may be lower than your insured amount after depreciation is applied.
Does hull coverage cover hangar rash or ground damage?
Yes. Hull coverage with not-in-flight or ground coverage included will cover physical damage to the aircraft while it's on the ground, including hangar rash, collision with ground equipment, or weather-related damage. Make sure your policy includes ground coverage and not just in-flight coverage.
What happens if I upgraded my avionics after buying the policy?
Upgrades made after the policy was written are not automatically included in your hull coverage unless you report them and adjust the insured value. Inform your insurer any time you make a significant modification or equipment addition to make sure those improvements are covered.
How often should I review my hull value?
At every renewal, at a minimum. General aviation aircraft values have fluctuated significantly, and an outdated insured value can leave you underinsured. If you've made upgrades or if market values have risen, request an adjustment before renewing.
Is my hull deductible a flat amount or a percentage?
It depends on the policy. Some hull deductibles are a flat dollar amount, while others are expressed as a percentage of the insured hull value. Read your declarations page carefully. A percentage-based deductible can be a meaningful out-of-pocket cost on higher-value aircraft, so factor that into your coverage decisions.
