Repair Claims

We are here to help when the unexpected happens

Getting you back in the air safely and quickly.

Haggan Aviation has decades of experience repairing all types of aircraft damage, from weather-related incidents to off-field landings caused by system failures. Each repair is unique and demands a process driven by technical expertise and proper material support. Having worked with nearly all major insurance carriers and third-party aviation administrators, we’re ready to assist with navigating the complexities of your claim.

Navigating the Insurance Process

If an incident occurs, following these steps can help streamline the insurance process:

1. Report the Incident – Contact your insurance broker to report the event.

2. Claims Initiation – Your broker will notify the primary insurance company to begin the claims process.

3. Adjuster Assignment – The insurance company will assign an adjuster to handle your claim. Some insurers work with third-party claims administrators, independent specialists who gather necessary data and assess the damage.

4. On-Site Inspection – If deemed necessary, the adjuster may conduct an in-person aircraft inspection.

5. Adjuster Communication – The adjuster will reach out to the insured to collect details, including:

• Location of the incident

• Explanation of the event

• Aircraft records for airworthiness verification

• Pilot information (medical, biennial) if the incident occurred in motion

6. Repair Estimates – The adjuster will contact repair facilities for cost estimates to restore the aircraft. The insured may also obtain an independent estimate from a facility of their choice.

7. Evaluation of Repair Options – The adjuster reviews all estimates to determine the best repair solution.

8. Facility Selection – The recommended repair facility is communicated to the insured. The aircraft owner has the final say in selecting the repair facility.

• Note: If the insured chooses a facility with higher costs than the recommended option, they are responsible for covering the difference.

9. Repair Authorization – The insured must directly authorize the selected repair facility to begin work.

10. Financial Responsibility – The insured is responsible for the repair costs. The insurance company will reimburse the insured for repairs (minus deductibles and betterment) upon receipt of a signed Final Proof of Loss.

11. Insurance Payment – The insurance company will issue payment based on the Final Proof of Loss. The check may include all named parties on the policy, including additional insured parties and the repair facility, unless the insured requests direct payment to the repair facility.

Following these steps ensures a smoother claims process and helps get your aircraft back in the air efficiently.

Key Terms to know:

Betterment: This refers to restoring an aircraft to a better condition than before the damage event. For example, if an 1,800 TTSN/TTSOH propeller with a 2,000-hour TBO is replaced with a new or zero-time propeller, a depreciation factor is applied. In this case, 1,800/2,000 (90%) of the average overhaul cost of the original propeller is deducted from the insurance claim.

Constructive Total Loss (CTL): A CTL typically occurs when the repair cost plus the salvage value exceeds the insured policy limits. Unlike other industries, aviation lacks a fixed formula for determining CTL. Instead, the value is assessed based on the insured's policy and the adjuster’s evaluation. In some cases, aircraft have been repaired up to the policy limit.

Final Proof of Loss: After all repairs are completed, the repair facility submits documentation to the adjuster for review. Once approved, the adjuster provides a statement outlining incident coverage, including deductions for deductibles, unrelated items, and betterment. The insured must process this document to release the final payment.

Subrogation: This occurs when an insurance company seeks to recover losses from a responsible third party. For example, if another party damages the insured’s aircraft, the hull insurance covers repairs, and the insurer then pursues reimbursement from the at-fault party or their insurer.

Common Myths and Mistakes in the Claims Process

Navigating an insurance claim can be complex, and certain misconceptions or oversights can create unnecessary challenges. Below are some common mistakes insured aircraft owners may encounter:

Myth: The Insurance Adjuster Chooses the Repair Facility:

While the adjuster is responsible for selecting a qualified repair facility and obtaining a detailed estimate, the final decision rests with the insured. Ideally, both the insured and the adjuster agree on the same facility, ensuring a smooth repair process.

Mistake: Not Understanding Your Insurance Policy

Insurance policies contain crucial details that can significantly impact a claim. As the insured, it’s essential to understand your policy’s coverage and limitations before an incident occurs. Educating yourself in advance can prevent complications when filing a claim.

Mistake: Overlooking Important Dates

An insurance company may deny coverage if your medical certificate is expired or your biennial flight review is not up to date. Similarly, failure to comply with required aircraft maintenance—such as overdue airframe, propeller, or engine inspections, unresolved Airworthiness Directives (ADs), or expired ELT batteries—can be considered a policy violation, potentially voiding your claim.

Mistake: Over-Insuring Your Aircraft

If an aircraft is insured for more than its actual market value, owners may find themselves required to repair it when they would have preferred it be declared a Constructive Total Loss (CTL). To avoid this situation, it’s best to insure your aircraft at its true market value.

Mistake: Under-Insuring Your Aircraft

Conversely, under-insuring can lead to unexpected outcomes. If the aircraft is deemed a CTL when the owner expected it to be repaired, the settlement may fall short of expectations. When making significant modifications or upgrades, owners should consult their insurance broker to ensure coverage limits remain appropriate.

By understanding these common pitfalls, aircraft owners can make informed decisions and avoid unnecessary complications in the claims process.