What does aircraft hull insurance cover, and what's the difference between in-motion and not-in-motion cover?
Aircraft hull insurance pays for physical damage to, or total loss of, your own aircraft. Not-in-motion cover protects it on the ground and stationary (hail, windstorm, hangar fire, theft, vandalism). In-motion cover protects it while taxiing, taking off, flying and landing. Most hull policies are written at an agreed value, so a total loss pays the value fixed when the policy started, minus any deductible, not a depreciated actual cash value. Hull doesn't cover wear and tear, mechanical breakdown or your liability to others. See aircraft & aviation insurance explained for the full policy structure.
- Not in motion covers ground and storage perils. In motion covers taxi, takeoff, flight and landing, usually with a higher deductible.
- Agreed value means a total loss pays a pre-agreed figure, so set it to realistic market value.
- Wear and tear, gradual corrosion and mechanical or engine breakdown that isn't caused by an accident are standard exclusions.
- Hull cover only applies if the pilot meets the pilot warranty and the aircraft is airworthy.
- Hull pricing runs about 0.9–1.3% of value for piston airplanes, around 2% for helicopters, and 8–12% for drones.
In Motion vs Not in Motion
In motion covers the aircraft whenever it moves under its own power: taxiing, takeoff, flight and landing. This is where pilot error claims happen, so deductibles are higher: for example, $0 ground and $1,000 in flight, or a percentage of hull value for seaplanes and homebuilts in Phase I.
What Hull Insurance Doesn't Cover
• Mechanical or engine failure that isn't caused by an accident. A follow-on crash may be covered, but the failed part itself often isn't.
• Flights outside the pilot warranty, or with an expired annual inspection.
• Use not declared on the policy, such as charging for flights under a pleasure-use policy.
• Damage to the hangar building, which needs separate cover (see aircraft hangar insurance).
Hull also doesn't pay injured passengers or third parties. That's liability, explained in smooth vs per-seat liability.
Under-insure and a total loss leaves you short, especially if a loan balance exceeds the payout. Over-insure and you pay extra premium every year for value you'd never collect. The same trade-off is explained for boats in agreed value vs actual cash value.
Hull Cover Across Aircraft Types
Illustrative Case: Hail on the Ramp vs Prop Strike on the Runway
Scenario: A Cessna owner with a $120,000 agreed-value hull, a $0 not-in-motion deductible and a $1,000 in-motion deductible had two losses in one year: $18,000 of hail damage while tied down, and a $40,000 prop strike on landing.
Resolution & Judicial Outcome: The hail claim paid $18,000 under not-in-motion cover. The prop strike paid $39,000 under in-motion cover after the $1,000 deductible. A separately quoted engine overhaul for normal wear was declined as wear and tear.
What You Should Do: Step-by-Step Action Plan
Critical Mistakes to Avoid
- Expecting hull cover to pay for engine wear or mechanical failure.
- Leaving the agreed value unchanged for years.
- Flying with an expired annual inspection.