1. I would like to buy an aircraft. What are the insurance implications? Most people who are looking into an aircraft purchase do quite a bit of research. They have learned about market cost, maintenance costs, parts availability, and AD history. People want to know more than just how fast, how far, how much will it lift. Make sure that you include the cost and availability of insurance in your research. Especially if you are making a transition, you may find that cost, limit of liability or training requirements may influence your decision. Here are some other things to consider when you are buying an aircraft: Does the airplane or helicopter currently have insurance? Sometimes sellers will let their insurance lapse, and the buyer's insurance won't become effective until he or she owns the airplane. This can be a real problem if you want to test fly the aircraft. Don't count on non-owned coverage here, because it will only respond if you are at fault. If you test fly an airplane which has no insurance of its own, and which is damaged as a result of mechanical failure, there will probably be no insurance for anybody, even if you have non-owned physical damage coverage. Does the aircraft have a current airworthiness certificate? Most policy forms exclude coverage for ferry flights, even if the FAA has given you a permit. Let your broker know the details, and get the company's specific approval before the airplane is flown. Exactly when do I take title to the aircraft? This is a tricky business. Some transactions are very simple, others are extremely complex, often for tax reasons or because the airplane is being ferried from another country. In general, let your broker know the details of the transaction, and he or she can take it to the company if it is unclear. If the insurer understands your closing situation and has agreed in writing to cover it from a specific point, you can cross this off your worry-list. Will the aircraft be ferried by a temporary pilot? If so, make sure that this pilot has been approved as a pilot by your insurer before takeoff. Contract pilots may also request to be included as additional insureds. This may involve additional premium. More important, you must decide whether you want to share your liability coverage with a professional pilot. If formal school is part of the deal, think it all the way through. Especially when pilots step up to their first large twin or turbine, insurers will often require formal school. Would you prefer to get some time in the airplane with an approved instructor before you get thrown into simulator sessions, or would you like to go to school first? Most carriers go along with you either way as long as you have a sensible training plan. If part of the training will be in your airplane, think through how you will get it to school and back. And make sure that you can get a school slot when you want it. If there are dual instruction requirements, watch out. If you are required to get a check out or other training from a CFI, make sure that the CFI meets the requirements of your pilot warranty, including time in the specific make and model. If he or she does not, call your broker and get specific approval from the company. Until you meet the pilot requirements, someone has to, and if the CFI does not, you may not have any coverage.   © 1999-2006 Sutton James, Inc. All rights reserved.