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What Lenders Typically Require
- Hull coverage: Agreed value in line with purchase price/appraised value.
- Liability limits: Often $1M smooth or $1M/$100k; confirm program minimums.
- Additional insured/loss payee: Lender listed with proper wording.
- Pilot warranties: Training/experience endorsements (e.g., type/model training, minimum hours).
- Notice of cancellation: 30 days for non‑payment and material change.
Timing and Closing
Start insurance quotes in parallel with underwriting. Binders are usually required before funding. Coordinate with escrow, title, and FAA registration to keep closing on schedule.
Cost Drivers
- Aircraft type, usage (Part 91 vs 135), and pilot experience.
- Claims history and training programs.
- Coverage limits and deductibles.
Working With Your Broker
Share financing timelines, pilot resumes, and training plans early. Ask the broker to pre‑vet lender wording and ensure certificates match requirements.
Pilot Warranty Details
Policies often require minimum time in type, total time, and annual recurrent training. Deviations can void coverage. If you’re transitioning to a more complex type, plan training schedules in step with financing and delivery.
International and Special Operations
International trips, icing operations, or special missions may require endorsements or additional coverage. Clarify needs with your broker to avoid gaps and ensure lender acceptance.
FAQs
Can insurance delay closing?
Yes—binders with correct lender wording are gating items. Start early to avoid last‑minute rework.
Will Part 135 insurance cost more?
Usually; commercial exposure and requirements raise premiums and minimum training standards.
Do lenders require hangaring?
Some do, especially for higher‑value aircraft and in severe weather regions.
Related Articles
External references: NBAA · AOPA Insurance · FAA Registry