Hull Insurance

Hull insurance covers physical damage to or loss of the aircraft, priced as a percentage of the insured hull value — so a more valuable aircraft costs more to insure, and the rate varies widely by type, use and pilot experience. It's one half of a typical aircraft policy, the other being liability.

Why it matters: hull insurance protects the machine itself, and it is written on an agreed value — the number that will actually be paid on a total loss. Setting that number correctly is the owner's responsibility: too low leaves real exposure, too high buys premium without buying recovery.

Watch the structure as much as the premium: policies distinguish in-flight, taxiing and not-in-motion risk; deductibles differ by phase; and lenders will require their interest noted. Review agreed value as the market moves — a figure set at purchase can drift badly from replacement reality within a few years.