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Spring 2018  Volume 14, Number 1        


How to Buy Motor Home Insurance

Whether you own a deluxe land yacht with all the bells and whistles, a mini motor home, a towable motor home or folding camper, having any type of recreational vehicle represents a change in lifestyle…and insurance needs.

You can insure most recreational vehicles under a personal auto policy (PAP). However, specialized recreational vehicle or motor home policies provide better coverage. You won’t notice the difference until you need to file a claim, but then differences become apparent.

  1. Damage to or theft of the vehicle: If your RV gets damaged or stolen, the PAP will pay only the actual cash value of the vehicle. This is the purchase price, less any depreciation. As you probably know, vehicles depreciate dramatically from the moment you drive them off the lot! An actual cash value policy won’t pay enough to replace your RV in the event of a total loss or theft.

    RV insurance usually offers you the option of buying agreed-value coverage, where the insurer will pay you an amount specified when you buy the policy if your RV is a total loss or stolen. Some insurers also offer total loss replacement coverage, which will pay for a new RV like the one you own if yours is stolen or suffers a total loss in its first five years.

    If you cover your RV under a personal auto policy, the insurer will assign your claim to an auto adjuster, who may or may not have experience with RVs. When you buy a specialized policy, your adjuster will have training and experience in estimating damage and repair costs specifically for RVs.

  2. Damage to or theft of contents: Most personal auto policies don’t cover personal property carried in the vehicle. Most homeowners policies provide protection for your personal property outside your home; however, they often place a limit on “contents coverage” and usually place strict limits on coverage for items such as electronics, jewelry, etc. In addition, your homeowners policy might consider attached accessories, such as satellite dishes and other valuables, as part of the vehicle rather than part of your home’s contents, and therefore not provide coverage. Many RV policies do offer this feature.

  3. Personal liability: Your PAP covers you when you’re driving and involved in an accident that injures another person or damages their property. And your homeowners policy pays if someone is injured at your home. But what policy protects you while using your RV as a vacation residence? Specialized RV policies can provide vacation liability coverage, which protects you from claims if someone is injured at your campsite or in your RV.

  4. Towing/emergency assistance: Many PAP policies provide some coverage for towing and emergency roadside service. However, most policies limit coverage to a certain number of miles or dollars. Towing a Winnebago costs a lot more than towing a Mini Cooper, and RV dealers or servicers are fewer and farther between than auto mechanics, which could leave you with a significant bill.

Some RV insurers also offer coverage for temporary housing or travel expenses to help you get home if your RV is damaged while you are traveling. For more information on covering your RV, please call us.

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In this issue:

This Just In...

What’s the Future of Auto and Home Claims Handling?

Eight Homeowners Endorsements You May Need

How to Buy Motor Home Insurance

Get a CLUE, Don’t Buy a Lemon!



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