The Guide To Static Homes

Being realistic, it may be difficult to secure funding for a caravan purchase in a situation where you are unemployed or have a relatively low part-time income.  If you are employed, your lender may need to see references and some indication of your salary levels.

If you are self-employed, you may need to show evidence of your books of account and the income you have been taking over recent years.

You may find that lenders may require some form of security over the loan – perhaps typically looking to secure it against your home.

There is no reason why you should not seek a conventional bank loan for this type of purchase.  Given the uncertainty in financial markets over recent years though, it is difficult to predict the outcome of such an approach.

By contrast, there are specialist finance companies that target products specifically at caravan purchases.  It may be worth researching that option further and comparing one quotation against another.

If you are purchasing a new static, you may find that the distributor or dealer may have their own financing options.  Be sure to compare things such as the interest rates closely against other sources of borrowing.

Financing – be realistic not optimistic

Many of us might be vulnerable to perhaps deluding ourselves a little as to how much we can afford to pay for something we really want.

Try to remember that if you struggle to meet repayments on a loan, then your caravan may be seized or any other asset that you secure the loan against.

So, estimate conservatively and budget accordingly before starting to look around for your static caravan.

3. Insuring your static caravan

Even the humblest static caravan is unlikely to be something that can be described as being cheap.

In all probability you have paid a lot of money for your static and it may be worth a lot to you both financially and emotionally.  As such, you will probably want to be making sure that you have it insured to one extent or another.

So, what are your options?

Static caravan insurance

The good news is that putting into place a policy that will offer you a substantial degree of protection is something that is relatively straightforward.  As you would expect, here at Cover4Caravans we are experts in this domain and would be only too pleased to offer our help.

The risks you might be typically trying to cover would come under certain generic categories:

• acts of nature, perhaps including things such as winter, storms and flooding – though be sure with flooding that you understand exactly what your policy is covering and what it might not be covering, given the increasing national concern over flood risk;
• acts of man – this might include unpleasant subjects such as burglary, vandalism, theft and so on;
• acts of law – in this category you might find things relating to your legal exposures, for example the provision of liability insurance covering third party claims (watch our short video here on caravan liability insurance and its importance).

These categories are somewhat arbitrary, and it is important to look at each individual risk covered by a policy before deciding whether or not the policy overall is suitable for you.

What is liability insurance?

You may have personal legal liability arising from your static caravan in circumstances where:

• someone was injured as a result of your caravan, particularly in situations where you were deemed to be held culpable due to your failure to maintain it in an appropriately safe condition;
• where the property of someone else was damaged as a result of your caravan with the same sort of conditions as above.

Space does not permit a full discussion of the legal issues associated with this type of cover but it is important to understand that court awards in circumstances where someone has been seriously injured may be staggeringly high and potentially way beyond the financial means of most people to pay.  The results on your overall financial position may be catastrophic unless you have appropriate cover in place to help.

Circumstances and putting your cover at risk

Any policy of this type will typically specify exactly the situations it is designed to cover and those it will not.

However, you may need to be careful that you accurately make clear to your insurance provider, exactly what you are planning to do with your static.  Depending upon the exact nature of your policy, some of the circumstances below might need to be discussed clearly in advance with your policy provider:

• moving from a situation where only you use your caravan to one where you were planning to let it out for rental income (you may also need the site owner’s permission for this);
• where you have refurbished or refitted your caravan and this has resulted in a significant increase in its value;
• situations where you have started to keep higher value items in your caravan on a permanent basis – examples might include electronic devices or antiques etc. (in fact, some policies may specifically prohibit this).

You can read our quick article here on when to notify your insurer.

It is also imperative to know that your insurance policy and indeed local authority regulations may specifically prohibit you occupying your static home on a permanent or even extended basis throughout the year.  By nature, these types of policies cover recreational use not permanent habitation.

If you are in any doubt as to any occupancy issue whatsoever, you should have a discussion with your insurance provider at the earliest opportunity.

4. Your obligations and caravan safety

There may come a time when you decide to start using your static caravan as a way of generating a little income.

There is nothing wrong with that and it might prove to be relatively lucrative providing your caravan is well equipped and is in a location that other people might find to be desirable.

To avoid any risk of confusion here, note that this relates to holiday time lettings of a few weeks duration each year. Trying to let out your static for permanent or semi-permanent occupation would be a much more serious and complex endeavour and one you would need to discuss extensively with the site owners, your local council and your insurance provider. It might be advisable to consider it to be unachievable in most situations.

Your obligations

As someone letting out your caravan for recreational purposes, you will be under obligations to a number of parties:

• your paying guests – in other words your caravan will need to be attractively presented and well maintained. The way you conduct your business will also need to be highly professional and ethical;
• the site owners – in many cases your pitch agreement will oblige you to consult the site owners in a number of circumstances, typically including situations where you plan to let your caravan out.  Do take note that some site agreements may prohibit this altogether and you should be looking at that carefully before deciding on the purchase of a caravan;
• the law – the legal and local authority regulations relating to things such as caravan safety are complex and subject to relatively frequent change as society demands ever more accountability on the part of owners.  You should research this thoroughly on a number of sites before deciding to go forward;
• your insurance provider – your policy must cover you for the circumstances surrounding your use of your caravan.  Discuss any letting of it well in advance with your policy provider;
• HMRC – you must declare any income so obtained.

Safety

Please note that what follows is not qualified legal advice.  Due to the frequency of regulations changing, you must research this yourself through government websites and qualified solicitors.

However, as an introductory overview:

1. all gas and electrical appliances within your caravan must have been installed in accordance with safety regulations.  DIY and best-guess jobs are strictly prohibited;
2. you must ensure you get an annual gas safety check from a qualified Gas Safe registered engineer and display the safety certificate within your caravan;
3. you must ensure that any electrical items that you have plugged into your caravan (such as kettles, DVD players etc.) are PAT (Portable Appliance Test) annually;
4. you must attain a fixed electrical installation certificate every 5 years;
5. you are legally obliged to have a fire extinguisher and fire blanket available on your property;
6. all caravans should have a smoke alarm and carbon monoxide detectors are required and mandatory for let caravans.  You should make absolutely certain that both devices are installed and are fully operational with batteries in place.  Carbon monoxide and caravan fires are major killers that can be defeated with the expenditure of just a few tens of pounds and the installation of these devices;
7. you need to ensure your soft furnishings comply with modern fire-retardation standards.

Conformity

Neither you nor your customers will want to start a new holiday rental with an undignified squabble upon their arrival when they start to dispute whether your caravan is exactly as described in the advertisement.

So, make sure that everything exactly matches how you have described it and that your caravan is in great condition.

Don’t forget that your description should also include something relating to the site but linking that to your caravan.  For example, stating that the site has great river views but neglecting to mention that your individual caravan does not, is an example of something you will want to avoid!

5. Kitting out your static caravan

There are two separate considerations you may come across in terms of kitting out your static caravan:

• what you will need for your own comfort and that of your family when using your static;
• what you might need to include both to attract potential renters and to protect your interests when doing so – assuming of course that is something of interest to you.

Your use

It’s very difficult here to say what you and your family need to make you feel comfortable in your caravan.

Some people regard caravanning as something of a slightly more comfortable form of camping and therefore are fairly minimalist in the equipping.  By contrast some other owners really do like to turn their caravan into a home-away-from-home with all the associated conveniences.

There are though, a few things you may wish to think about when deciding what sort of equipment you will need and how much you are planning to spend on it:

• are you planning to leave it in place when you are not in residence?  If the answer is no, you may need to think about size, weight and portability, as your car probably has only so much carrying capacity.  If you are planning to leave equipment in your caravan, you may need to carefully consider values and the risk of theft.  You may need to consult your insurance policy for any special conditions relating to what may or may not be left in the caravan when you are away;
• how long will you be staying when visiting?  Deciding to rough it and cope might be fine for a long weekend it but might become much more tiresome when talking of a week or longer;
• the weather.  The British summer can be called many things but reliable may not be one of them.  Therefore, there is a fair chance that at times your caravan is going to be full of people who have got wet and muddy and have brought some of that inside.  So, you might not wish to skimp too much on things such as heating, drying, washing and possibly cleaning equipment;
• in passing, don’t forget security.  Good quality locks and bolts plus a burglar alarm might be a sensible investment.

Check out our list of caravan basics here: http://www.cover4caravans.co.uk/articles/quick-guides/caravan-safety/caravanning-checklist. Although it is aimed at tourer owners, there is a lot of crossover as to what you will need.

6. Letting your caravan out

Here, there is a clear balance to be struck.

On the one hand, if your caravan is equipped like a Spartan mess hall, then there’s a fair chance you won’t be seeing too many takers!

On the other hand, however careful you are with who you let to, it is a fact of life that when people and children are using your caravan then damages and breakages may need to be accepted as being an ever-present reality.

However much you try to manage this with inventories and deposits, it might be pragmatic to think about using utility furnishings and equipment rather than high-quality and expensive items.

Another good idea when letting is to make sure that your mattresses are lined in order to protect them against a variety of risks.  The same may be true of your seating areas and soft furnishings where it might be sensible to protect internal cushions and foam with liquid-proof and easily washable fabrics.

Above all though, try to achieve a sensible protection of your asset whilst at the same time maintaining an attractive and homely interior. Sometimes holiday renters communicate with each other and referrals and recommendations might be extremely valuable to you in future.

If you are going to let your static caravan out, then make sure you have the most appropriate liability insurance to read more at our section entitled: Insuring your static caravan);  and that you understand your obligations visit our section entitled: Your obligations and caravan safety);