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My personal experience:
 
I had a plane destroyed by fire. I called my insurance company. At their request, I submitted a repair estimate, pictures of the damage, and my explanation of how the fire occurred.
 
They sent me a check less the amount I had bid to buy my plane back.
 
I used the money to buy my next plane.
 
End of story--no hassle---no investigation.
 
Not all insurance companies are out to shaft you. It was AIG by the way.
 
Cheers:
 
Paul
NC2273H


If you have an electrical fire in flight, and the insurance company finds that regulator
(made more likely that you've said publicly that it's there) they won't pay off.

 Like I maintain, the FAA does not inforce the FAR's in this instance.  The insurance companies do by leaving you "swinging in the wind" when it comes to paying off the person whose property you hit!
 
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