What does caravan insurance cover?

This is a question we’re asked regularly here at Cover4Caravans – and we’re more than happy to discuss it at some length.

Before getting into that discussion, though, it’s important to emphasise one critical point: the only way of being absolutely certain of your answer to the question about what your caravan insurance covers is to carefully read the proposed policy documents or speak to your caravan insurance provider if you are unsure.

Policies differ from each other – sometimes by surprisingly quite significant amounts. What follows therefore is inevitably something of a generalisation.

On the road accidents

If you are towing your caravan on the public highway and the vehicle is somehow involved in an accident:

  • any claims against you from third parties for the loss or damage they’ve sustained because of your caravan, typically should be covered by your car insurance policy – but you must check that is the case by looking at your motor insurance policy while noting that, in some cases, exclusions may apply;
  • any damage caused to your caravan might not be covered unless your car’s policy offers fully comprehensive cover to include any caravan you are towing (and such policies are likely to be rare indeed) – in the majority of instances, therefore, you may be left in the position of having to prove liability rested entirely with another party (which may be very difficult) and seek redress from them and their insurance.

If you are trying to cover or bridge any apparent gaps in particular caravan insurance policies, you are likely to encounter difficulties in reconciling the various combinations of circumstances described above. For that reason alone, it might be worth contacting us so that we can explain the advantages of caravan insurance in these situations.

Claims from third parties – off-road

We live in a litigious society. That means that accidents that might once have been considered “one of those things” might now more often result in people looking for someone to blame – and on the strength of that liability, seeking damages through legal action. If you’re sued and lose such a case, the damages awarded against you might be substantial.

The insurance protection against the financial consequences of such successful claims is called “third party liability indemnity”.

Please remember that having third-party liability cover for your car is not the same as having it in place for your caravan. Since many incidents that might result in claims against you might occur off-road, when your caravan is un-hitched, it is very unlikely that they would be covered by your car insurance. Standalone caravan insurance is therefore typically required.

Note that some caravan sites may require evidence that you have such insurance in place as part of their conditions of entry.

Protecting your caravan

Most people understandably think of caravan insurance in the context of protecting their asset.

Broadly speaking, your caravan insurance is designed to offer just that protection against destruction or damage – in the context of the “perils” stated in the insurance policy documents. It is important to look carefully at those perils because they are not always identical between policies. For example, some policies might specifically exclude flooding as a peril, whereas others may not.

It’s also important to examine just what the policy proposes in terms of replacement (or replacement valuations) in situations where your caravan has been damaged beyond economic repair, destroyed, or stolen and not recovered.

That’s because some may offer “new for old” replacement based upon very open definitions whereas others may do so but only under limited conditions such as caravans that are under 12 months old and which have only had a single owner from new.

At Cover4Caravans, we are pleased to offer five years new for old cover regardless of the amount of previous owners.

Clearly, these are variations that could make the world of difference, should the worst happen to your caravan.

Protecting your possessions

Understandably, you’ll also want to cover any possessions and belongings inside your caravan. Once again, caravan insurance can help with the appropriate cover but look for differences between policies in areas such as:

  • new for old versus a market valuation that allows for “wear and tear”;
  • maximum levels of cover – the “sum insured” – both in total and for any individual item;
  • possessions outside the caravan (for example, awnings and furniture) and those stored inside; and
  • all the terms, conditions, and exclusions of your caravan insurance.

Summary

Caravan insurance might one day prove to be essential. Why not contact us to find out more?