pilot license – Scott Sky Smith Insurance

Short Term Non-owned Insurance Now Available!

Posted on July 6, 2024 by Scott Smith

What is Non-Owned?

Non-owned or as it is more commonly called, “Renters insurance”, is a liability policy that can provide bodily injury, property damage and aircraft hull protection for a pilot that is flying an aircraft they do not own.

“Do not own” is the key phrase. You do not have to own an aircraft to be found liable for damage or injuries. It is important to note that this is liability coverage; in addition, it is not only for rental aircraft. A borrowed, or even a flying club aircraft can put the pilot in a position of potential responsibility or liability.

Very simply put, liability means the coverage is used if the named insured is found liable for damage or injury to a third party.

Most Non-owned policies are annual (12 month) policies.

What if you have you found yourself in a situation where you need non-owned (renters insurance), but only for a short period of time? Maybe on vacation and want to get a checkout and fly at the local FBO, or you only need to use an aircraft you do not own for a week or two. Do you really need a year long “annual ” policy? Maybe what you need is a daily, weekly or monthly policy.

Depending on the state, now you can buy a Short Term Non-Owned Insurance Policy with the click of your mouse.

Looking for Short Term CFI Non-owned Insurance? That’s available too.

To get a quote click here and complete the application.

Note: a few states only allow annual policies.

Pressurized Aircraft as a low time pilot

Posted on June 1, 2020 by Scott Smith

Pressurized Aircraft as a low time pilot.

Recently, I was asked about buying a Pressurized aircraft. Of course, this was from a low time pilot looking for a good cross-country aircraft. Currently some older pressurized aircraft have cheap or low prices. Let me say right up front, they are cheap for a reason. I am not saying a pressurized aircraft is not a great deal. It is just that they come with their own set of issues. These issue can make owning one more expensive than a non-pressurized aircraft.

I was asked the following question. “At this point, I am a low time, private pilot. I realize I probably have a long way to go before I will be able to get insurance in the pressurized Skymaster with me as a pilot. But I do want to get to the point where I can fly it and have insurance. I thought with your unique history of being familiar with the Skymaster and dealing in aviation insurance, you might give me some guidance on the best way to get to a position of flying the Skymaster and getting insurance. I have around 75 (logged) hours of flight time.

What is the safest and most economical strategy for me to get insurance in a Pressurized Skymaster? Would it be beneficial for me to begin conducting dual instruction in the Skymaster? Could I complete all my instrument training, multi-engine training and type training in our actual airplane? What about completing at least 50 hours of dual instruction before acting as pilot in command. Can they limit the pilot in command activities to those required to complete the ratings and check-rides.

Even though this is a lot of dual, it is still safer and more economical for me than renting to build time and ratings.

Is such a scenario even possible?

If so, approximately what would it cost in premiums? If this is not practical, my second alternative would be to buy an older normally aspirated Skymaster (mid 60’s model) in the $50,000 range and follow the same path. Would this work?

Finally, if neither of these scenarios is possible, then what would you suggest to get me from here to there with the least amount of time and expense?”

So, let me clarify that the FAA requirements and the insurance requirements are not the same. You can get your multi engine rating with the 75 hours and be licensed to fly the Skymaster (pressurized or normal) without meeting any of the insurance “minimums’. That said, most people don’t want to do that.

Additionally, you can buy liability insurance and hull protection, or you can buy liability only. Liability only would probably be the minimum that you would want. This would provide coverage for property damage and bodily injury that you are found liable for. But, don’t get the impression that just because it is liability only, you will be able to get the coverage with less requirements. If the underwriters do not want to provide coverage because of your low hours or lack of ratings, it won’t matter if it is liability only or full coverage. You will still be a risk to them and they will still decline to quote or add a lot of requirements.

That said, you could probably get insurance coverage in a non-pressurized $50,000 Skymaster if you had about 250 hours total time, an instrument rating and about 25 hours of retractable gear time. Of course, it would probably cost you about $5,000+ a year in insurance premiums.

The next step is to shoot for about 500 hours of logged time, an instrument rating and about 50 hours of retractable gear time (oh, and a multi rating). You could probably get coverage in the Pressurized Skymaster with those minimums. You will still pay a decent premium and still be required to attend school and receive dual (probably 15 – 25 hours at least). Only a couple companies will provide coverage in that situation. Which is also a minor problem. This first year will be the most difficult. Expect high premiums, very little competition for your business and lots of dual.

In reference to getting the multi engine rating, I’d look into getting a conventional twin engine rating instead of just the Skymaster rating. A regular multi engine rating is good for ANY twins (Skymaster included). But a multi engine rating limited to the Skymaster (center-line thrust twins) is just that, limited to the Skymaster. The conventional multi rating has more potential and flexibility and the experience is well worth it.

This doesn’t mean you ever have to fly a conventional twin again, but at least you would be familiar with the behavior of a regular twin. If you can get the conventional multi rating there would be a better chance to rent a twin for a number of hours. Skymaster’s are all but impossible to rent. Of course, it’s the normal aviation recommendation, the more hours the better. More hours will only make the insurance buying experience easier

I would assume that the current insurance carrier will not cover the aircraft during any of the flights you make, if you are logging dual. There are clauses in all insurance policies that prohibit giving dual to pilots that are not listed on the policy for that purpose. Many people have tried to put their instructor on the policy (but not them) and then get the dual, the policy will be voided if there is a claim, so read the pilot requirements carefully.

Your ideas are probably the hardest option, you could try and be named pilot on the policy to receive dual only for some length of time. Maybe until you reach 150 hours total and become instrument rated…ask your agent if they can do that. If not, contact me and we can try and help you. And your proposal of dual is probably on the average to low end. At your total time, they would (if they agreed) require lots of dual and formal school.

Also, I am not saying pressurized aircraft are not a good investment. Its just be prepared for the increased maintenance because of the things necessary to keep the cabin pressurized. Just a few things extra expenses to think about. Additionally, almost all pressurized aircraft will require annual school by the insurance company. Does not matter if it’s a Pressurized Skymaster of a Cessna 421. So, figure that extra cost in your annual expenses.

Tiger or Arrow

Posted on November 21, 2019 by Scott Smith

Tiger or Arrow

Received this email about buying a Tiger or Arrow.

Hi Scott, I attended your seminar on “How to buy an airplane”. This will be my first airplane purchase, and I would like to spend around $75,000 or less. I think I’ve narrowed down my options, and I was wondering if I could get your thoughts on the following two aircraft a Tiger or Arrow.

Tiger: 1976-1979 vs. 1990-1993. Are there any advantages with paying more for the later year models? I found many ’76-’79 models with low hours asking between $36K – $65K depending on condition. The ’90’s models seem to be $75K and up. What are your thoughts?

Piper Arrow: The owner of my flight school asked me if I was interested in buying a ’73-’74 Arrow as a leaseback for the flight school. Personally, I do not really need a retractable, and the cruise speed is about the same as the Tiger. But I only fly about 75 hours per year so the flight school would help offset the costs a little. It would be the only retractable (and I think the only low wing – except for one Tiger) for rent in my area, so I expect that it would mostly be rented by more experienced pilots, and according to the flight school owner, also those who are going for their commercial license.

I’ve run the numbers for a lease back on this model, and after all expenses, maintenance and engine/prop reserve, they seem to work in my favor by about $750-1,000 per month, based on 60/hours rental per month at $120/hour. Am I right? What is the best way to evaluate a leaseback scenario?

I really enjoyed your seminar, and I’ve read your book “How to buy a single-engine airplane.” You’re honest with the facts and figures, and you don’t pretend that buying an airplane is not a big deal – it is! I appreciate that! I have 108 total hours, mostly in a C-172. I really like the low-wing models, and I’d like to make trips to Phoenix, so the cruise speed is somewhat significant, 135 knots is nice.

My answers about the Tiger or Arrow

The Tiger is a great aircraft. It offers retractable gear speeds with fixed gear. I owned an AA1A (two seat) for a while and really enjoyed flying it. I have a few hours in a Cheetah and Tiger which I really like.

I am not sure that there is any significant difference between an old and a new Tiger…except for age. I tell a lot of people to buy as new as possible. But sometimes an older aircraft that has all the upgrades and all the avionics that the newer one does might be a better deal. All the goodies without all the extra expense. If you buy old and put new “stuff” in it, you’ll get pennies on the dollar back for the investment.

I think the big factor would be hours, equipment and the condition of the older models. Since the Tiger is a different construction (bonded honeycomb) age can have a dramatic effect on the seams/bonding. You would want to check for damage to joints and seams from any paint stripper and any corrosion. Of course, it doesn’t matter if it is a new or old aircraft that would still be a concern!

As far as the Arrow? It is another good aircraft. It is especially good as a personal run around aircraft and commercial trainer. But because it is a retractable gear aircraft your maintenance and insurance costs are going to be higher. Not only the gear but you also have a constant speed propeller. The Arrow is cheap, as far as maintenance is concerned, but still it will typically cost more than a Tiger… for the same speed and load abilities. Insurance for rental on the Arrow could be $5000 a year or more (depending on the value).

Leaseback. If you put your aircraft on leaseback it becomes a piece of equipment. You will not have the freedom to use it or control its care like your own. But if you use it as a piece of equipment, don’t get personally attached; don’t worry about the details, (like scheduling your flights through the FBO, etc.). It might be okay.

Make sure you know all the details of the contract before you do a leaseback. Many FBO’s require that the owner cover all the expenses. Understand how they figure the cost of maintenance and what type of maintenance will be expected. Just think, at 60 hours month, it will need the 100-hour inspection (a mini annual) every month and a half. How much are they going to charge for the 100 hour inspection? Are parts discounted? Will you get a break on expenses? When you calculate your cost per hour, make sure you take into account the speed at which you will need an engine or prop overhaul or need to comply with AD’s and service bulletins etc.

If it is going to be your personal pride and joy, I don’t think you would be happy as a leaseback. Leaseback does help pay the bills. But it also increases the hours the aircraft is flown. Adding hours, wear and tear and abuse. A commercial trainer will be used to teach people maneuvers, engine outs, landings, etc. All of which add to the wear on an aircraft. It is still being used as a trainer (even though it is being used by current pilots).

Personally, if the cost per hour is a factor, buy an earlier Tiger at a lower cost. Get the most equipment and lowest hours you can and fly it as your own aircraft. If you can fly 75 to 100 hours a year, it would be cheaper per hour to own the aircraft than to rent. And with the Tiger you won’t have the higher insurance and maintenance costs.

Grumman Tiger

Piper Arrow