One of the first things you need to do when you buy a static caravan – whether it’s bought already on your chosen pitch or if you have arranged transport there from somewhere else – is to sign the all-important lease agreement with the site owners.
This written agreement sets out all of the terms and conditions of your lease of the pitch on which your caravan sits – not least of which is the amount of rent you have to pay each year.
Static home insurance
At the same time, you are also likely to be presented with a proposal form for the insurance of your static home.
In doing so, the site management representative might explicitly insist or somehow strongly imply that the application for insurance is as necessary for you to sign as the lease agreement. In most cases, you are free to shop around for your static caravan insurance cover.
Yes, that is correct! In most cases you don’t have to buy the site owner’s static home insurance, but may buy it independently elsewhere, so you might want to stand by your guns and insist on your right to purchase exactly the cover you want from an insurance provider of your choice. Here at Cover4Caravans, of course, we are able to deliver precisely that choice of cover – at a competitively priced rate.
If you do buy standalone cover, your site manager may insist they see your insurance schedule as proof that you do have adequate cover, and may charge a small administration fee for doing so. Even then, it may still work out more cost-effective for you to source your own static home insurance.
You don’t have to buy the site owner’s insurance except in those (relatively rare) cases where your lease agreement contains such a stipulation.
A rather more common condition written into your lease agreement is that you have adequate public liability insurance – and although you are free to buy that cover wherever you choose, you might have to furnish a copy of the policy to the site management as proof of your having arranged it.
The importance of public liability insurance is recognised by the owners of the site and is also in your own best interests. It protects you against claims that may be made by your neighbours on the site, their visitors, your visitors and members of the public who may be injured or have their property damaged as the result of what they claim to be negligence on your part.
Claims such as this – especially those involving personal injury – may assume substantial sums and it is common, therefore, for public liability insurance to offer a minimum of £1 million of cover.
Further reasons for arranging static caravan insurance
It is not only public liability cover which is important. The Financial Ombudsman Service has published a note on the subject of caravan insurance and this identifies some of the most common issues encountered by owners. It also highlights a number of elements which are designed to safeguard your investment in such a holiday home.
Therefore, the insurance typically puts at its core cover for the caravan itself against such potentially major risks as fire, flooding, storm damage, impacts (from vehicles or falling trees and aircraft), vandalism and theft. Similar protection may also extend to the contents of your holiday home.
You may need to bear in mind the very likely possibility of your static caravan lying unoccupied for reasonably lengthy periods of time – either because you are not using it or because the caravan park has closed for the season. When it is empty like this, your holiday home is probably at its most vulnerable. Your insurer may therefore impose a number of specific safety and security conditions to help mitigate the risk of loss or damage.