How much is your static caravan worth? It sounds like a straightforward question, but when you are arranging insurance, the answer is not necessarily the price you originally paid for it.
Getting your static caravan insurance value (the “sum insured”) correct matters because the figure may affect the amount of cover you have if something goes seriously wrong. So, where do you start?
What value should I insure my static caravan for?
First, check your insurance policy to see how your caravan is covered. Depending on the policy, this may be on a market value or new-for-old basis.
That distinction matters.
Market value generally reflects what a caravan of a similar make, model, age, specification and condition is worth at the relevant time.
New-for-old cover works differently. Subject to the terms and eligibility requirements of the policy, it is intended to provide for a new equivalent or comparable replacement following an insured total loss.
So, don’t automatically use the price you paid for your caravan several years ago. Equally, don’t simply pick a figure that seems about right. Check what your insurance provider or broker requires you to include in the value.
Don’t automatically use the price you paid
The purchase price is a useful reference point, but it isn’t necessarily the correct figure for insurance purposes.
That’s because the amount you paid may include costs that don’t form part of the caravan’s insured value. Depending on how and where you bought it, these might include:
- site or pitch-related charges;
- dealer or sales commission;
- finance charges;
- administration fees;
- service or maintenance packages;
- furniture or other optional extras; and
- other benefits included as part of the purchase.
There can be an issue in the other direction, too. The purchase price might not reflect some of the costs associated with replacing a caravan following a total loss. Depending on the circumstances and your policy, these could include removing and disposing of the damaged caravan, transporting a replacement and siting it on the pitch.
If possible, ask the park operator or dealer for an itemised breakdown of the purchase price. This may help separate the value of the caravan itself from site-related charges, services and optional extras.
Most importantly, check how your insurer wants the caravan valued and which costs need to be taken into account.
How can I find out what my static caravan is worth?
If you need to establish its current value, gather some basic information first. Note the manufacturer, model, age, dimensions, specification and general condition.
You can then look at similar caravans currently for sale. Caravan dealers, manufacturers and advertisements for comparable models can all provide useful pointers.
Try to compare like with like. A newer model, different specification or caravan in significantly better condition won’t necessarily provide a useful comparison.
And remember that an advertised selling price is just that – an asking price. It doesn’t necessarily tell you what the caravan will eventually sell for.
If you are struggling to arrive at a realistic figure, a professional valuation may be worth considering. Your insurer should also be able to explain the basis on which they expect the caravan to be valued.
What should I consider when calculating the insured value?
There isn’t a single calculation that applies to every static caravan insurance policy. What needs to be included will depend on the basis of cover and how your insurer defines the caravan, contents and other insured property.
There are, however, several things worth checking.
The caravan itself
Depending on your policy, the starting point might be the caravan’s current market value or the cost of replacing it with a new equivalent or comparable model.
When researching its value, make a note of the:
- make and model;
- year of manufacture;
- dimensions;
- number of bedrooms;
- specification;
- condition; and
- any permanent upgrades or improvements.
Purchase documents, photographs and an appropriate dealer or professional valuation can all be useful when establishing and recording the value.
Fixed fixtures, fittings and improvements
Think about what has been added to the caravan since it was manufactured or purchased.
This could include fitted furniture, integrated appliances, heating or air-conditioning systems, satellite equipment, accessibility adaptations and upgraded kitchens or bathrooms.
Don’t simply add the cost of everything to the caravan’s insured value, though. Your policy may treat some items as part of the caravan, others as contents, and some may be subject to separate limits or exclusions.
Contents
Furniture, televisions, kitchen equipment and other belongings can soon add up.
Check how your policy defines contents, what is included and whether any individual or overall limits apply. This is particularly important if you’ve replaced or added items since you first arranged your insurance.
Removal, disposal and re-siting costs
A total loss doesn’t necessarily end with the cost of buying another caravan.
The damaged caravan might need to be made safe, dismantled, removed from the pitch and disposed of. There may be debris-clearance costs, while a replacement caravan may need to be transported to the park and sited.
These costs can be significant, but don’t assume they need to be added to your sum insured. Some policies may cover certain removal, debris-clearance, delivery or re-siting costs separately or subject to specific limits.
Check your policy wording or ask your insurer whether these expenses are covered and, importantly, whether any of them need to be allowed for when calculating your static caravan insurance value.
Why does an accurate static caravan insurance value matter?
Underestimating the amount you need could leave you without sufficient insurance to meet the full cost of an insured loss. Your policy may also contain specific provisions dealing with underinsurance.
When should I check the value again?
A good time to review your static caravan insurance value is at renewal.
Don’t just carry forward last year’s figure without thinking about it. Caravan values and replacement costs can change, and you may have made improvements or added equipment since you originally arranged the insurance.
Keep photographs, purchase documents, receipts for significant additions and any valuation documents somewhere safe. If you ever need to make a claim, having a record of your caravan, its specification and associated items may be useful.
What if I’m still not sure what value to use?
Ask your insurance broker.
They can explain whether your policy uses market value, new-for-old or another basis of settlement, what should be included and how associated costs and additions are treated.
It is far better to clarify your static caravan insurance value when arranging or renewing your cover than to discover after a loss that you and your insurer had different ideas about how the caravan should have been valued.
Please note: This article is for general information only and does not constitute insurance or valuation advice. Static caravan insurance policies vary between providers, including how caravans and associated items are valued and how claims are settled. Terms, conditions, exclusions and limits apply.