René Banglesdorf- CEO- Charlie Bravo Aviation René is co-founder and CEO of Charlie Bravo... Read More
One of these things is title insurance. While the FAA keeps careful records of liens filed by creditors against airframes and engines- title insurance protects against the things that don’t necessarily show up in their database.
For instance- financial crunches have state and local authorities scrambling for funds to makeup budget deficits. With increasing frequency- these institutions are placing tax liens on high-dollar assets- such as aircraft. Especially in circumstances where the seller is a company or individual in financial duress- title insurance may be a good idea.
Title Insurance for aircraft has been around since the 70s- but the original product was not as good as what is available today- according to Tracey Cheek of Aircraft Title Insurance Agency . Consequently- many people do not understand what today’s policies actually cover. Others don’t know that title insurance is available for aircraft.
“We are combating a negative image on one hand and uninformed owners on the other. This can be challenging- but we are making progress-” Cheek says. Among entities that have purchased title insurance- claims are on the rise. Just through word-of-mouth- people are starting to understand that title insurance can help protect against some of the unforeseen challenges of owning or loaning money on an aircraft. She maintains that the policies available today make a lot of sense and are available for all types of aircraft.
At Charlie Bravo Aviation- we recently did have a client purchase title insurance on a high-priced jet because of the seller’s financial picture—or lack thereof.