By Tim Bonnell,  Aeris Insurance

Guest Contributor to Global Aircraft Group

When buyers, sellers, or financiers think about aircraft value, the conversation often starts with the appraisal—but that’s only part of the story. As an aviation insurance professional, I often find myself working at the intersection of value and risk. And that’s where true aircraft worth is revealed—not just in dollars, but in decisions.

In this article, I’d like to highlight how aircraft appraisals and insurance risk assessments inform one another and why aligning the two is essential for smarter ownership, financing, and fleet planning decisions.

An aircraft appraisal delivers a formal opinion of value, typically based on make, model, year, hours, equipment, maintenance history, and current market conditions. Whether it’s a desktop appraisal or a full physical inspection, the result is a number that helps guide transactions, tax filings, financing, or legal matters.

But as thorough as appraisals are, they aren’t built to predict every possible cost or exposure. That’s where risk assessment steps in.

From an insurance perspective, we’re evaluating the aircraft in context—not just as an asset, but as part of an ecosystem of operations, people, environment, and exposure. We ask:

These questions impact insurability, premium pricing, and even availability of coverage. Two aircraft with identical appraised values may represent wildly different risks based on these variables.

Here’s where it gets interesting. Insurance underwriters often consult appraisal data to help evaluate an aircraft’s replacement cost, residual value trends, or depreciation risk. At the same time, appraisers sometimes consider operational factors—like usage type or maintenance programs—that are more often the domain of risk professionals.

This intersection is critical. For example:

Appraisal + Risk Assessment = True Operational Value.

 

If you’re acquiring or selling an aircraft, don’t silo the appraisal from the insurance process. Engage both professionals early—ideally before the Letter of Intent is signed. This enables:

It also protects your interests in the event of a loss. If the insurance value is significantly below the appraised value—or vice versa—you risk being underinsured, overpaying, or disputing claims during your most vulnerable moments.

At Aeris Insurance, we often collaborate with experienced appraisers like those at Global Aircraft Group to help clients bridge the gap between asset value and operational risk. The goal is always the same: deliver clarity, mitigate surprises, and ensure every stakeholder—owner, lender, insurer—has the right information to make smart, defensible decisions.

The aircraft appraisal tells you what it’s worth on paper. The risk assessment tells you what it could cost in reality. Together, they offer a 360-degree view of value that’s essential in today’s complex aviation landscape.

If you’re planning an acquisition, reassessing your fleet, or just curious how your insurance coverage aligns with your aircraft’s appraised value, reach out. In aviation, foresight is more valuable than hindsight.

Tim Bonnell is the President of Aeris Insurance Solutions, where he helps aircraft owners and operators make better decisions through strategic risk management. With decades of experience in aviation insurance, Tim is passionate about education, transparency, and helping clients protect what matters most. Learn more at aerisinsurance.com.