Page 14 - May 2022

theft thereof that happens during the policy period and results in no recovery of the Scheduled Aircraft for thirty (30) days.”
The policy directly states that “theft” is covered. However, in the “exclusions” section it may state that there is no coverage if the loss is a result of claims caused by “confiscation, nationalization, seizure, restraint, detention, appropriation, or requisition for title or use by or under the order of any government (whether civil, military or de facto) or public or local authority.”
The exclusionary wording is why lienholders typically require aircraft owners to buyout this exclusion through purchase of “war hull” coverage. If your King Air is seized or confiscated, you might be so inclined to not make the next payment to the bank. The bank or leasing company is going to have a very difficult time talking the third party that seized the aircraft into continuing to make those payments on your behalf or give them back the collateral. War hull allows for the aircraft owner and the lienholder to be made “whole” through the insurance proceeds.
The added cost to buy back the war exclusions is much closer to pre 9/11 rates and has come down drastically since spiking around 2006. A recent example: A $3 million King Air 350 was charged an extra $900 to buy the war hull coverage. This equates to a 3 cents
war hull rate. To put it into perspective, before 9/11 this would have been a 2 cents rate.
When the “war, hijacking, extortion and other perils physical damage write-back” endorsement is purchased, it is added to the end of your policy and specifically adds back coverage for:
a. War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power;
b. Strikes, riots, civil commotions or labor disturbances;
c. Any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional;
d. Any malicious act or act of sabotage;
e. Confiscation, nationalization, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government, (whether civil, military or de facto) or public or local authority;
f. Hijacking or any unlawful seizure or wrongful exercise of control of the aircraft or crew in flight (including any attempt at such seizure or control)
9 17  30
DEANBENEDICTA&P,AI,CONSULTAN T TEL:702-773-1800DR.DEAN@BEECHMEDIC.COM
  
12 • KING AIR MAGAZINE
MAY 2022
9 17 30