Upgrading or retrofitting your aircraft is a strategic way to improve its performance, extend its lifespan, and enhance your safety and comfort. Whether you’re installing cutting-edge avionics, upgrading to a more fuel-efficient engine, or renovating the cabin interior, these changes can significantly impact your aviation insurance policy.
Ingram Aviation Insurance helps aircraft owners understand how upgrades affect their coverage, avoid unexpected liability gaps, and ensure their policies reflect their aircrafts’ value. Here’s what to keep in mind.
Aircraft Upgrades That May Affect Coverage
Avionics
Modernizing your cockpit with digital flight decks, ADS-B, autopilot systems, or synthetic vision technology improves safety and functionality. These changes can increase the aircraft’s value and alter the risk profile as perceived by underwriters.
Engine Replacements or Modifications
Engine retrofits – such as installing more powerful or efficient engines – often improve reliability and fuel economy, but they also raise replacement costs in the event of a loss.
Interior Renovations
Whether you’re refreshing seating, reconfiguring layouts, or upgrading entertainment and environmental systems, cabin refurbishments add tangible value to your asset.
Exterior Work
Your insurance records should also note paint jobs, new de-icing boots, antenna replacements, or aerodynamic improvements, especially if they influence performance or maintenance costs.
Why These Changes Matter to Your Insurance
1. Hull Value Adjustments
The hull value in your policy represents the insured worth of your aircraft. After an update, you may need a reappraisal to avoid being underinsured. If your policy reflects an outdated hull value and your aircraft is damaged or totaled, you may not receive the full cost of your investment in a claim.
2. Liability Exposure
Modifications that affect your aircraft’s speed, weight, or fuel capacity can influence your liability risk. For example, a faster or more powerful aircraft may change the conditions under which you fly or the skill level required to operate safely.
3. Pilot Endorsements
Upgrades such as a new autopilot system or instrument panel layout may necessitate additional training or a check-out flight for approved pilots.
4. Temporary Risk During Modifications
If your aircraft is out of service during an upgrade, make sure your policy includes ground risk hull coverage to protect it while it’s in the hangar or at a maintenance facility.
Steps to Take When Upgrading Your Aircraft
1. Notify Your Insurance Broker Early
Inform your broker of your upgrade plans so they can assess how these changes will impact your policy, coverage, and premiums.
2. Get a New Valuation
After you have work done on your aircraft, obtain a current appraisal to reflect its updated market value and ensure your coverage remains aligned with your investment.
3. Update Maintenance Records
Maintain detailed logs of all upgrades and modifications. These records support insurance adjustments and preserve resale value and regulatory compliance.
4. Reassess Liability Limits
If you plan to carry more passengers, fly more frequently, or use your aircraft in new ways (e.g., longer trips, night flying, or international routes), make sure your liability limits reflect the increased risk.
How Ingram Aviation Insurance Supports Aircraft Upgrades
We make insurance seamless for aircraft owners. Our aviation-only focus means we understand the nuances of aircraft modifications – and how to translate them into accurate, comprehensive coverage.
We help you:
- Adjust hull value based on market data and real-world upgrades
- Understand underwriter requirements for pilot qualifications and usage
- Protect your aircraft during downtime
- Update your policy quickly so you’re always ready to fly
Your insurance policy should keep pace with the investments you make in your aircraft’s value, performance, and safety. Contact us today to review your coverage or adjust your policy.