The luxury motor coaches built today can provide nearly the same amenities found in a high-end hotel or luxury home. Even modern RV’s and travel trailers are boasting more technical features such as Wi-Fi enabled gadgetry, and more luxurious interior appointments. RV sales are rising and yet not all insurance companies or their agents are familiar enough with RV’s to properly protect your investment in the even of a loss. Many Insurance agents and newer online only insurance companies are set up to insure common things like cars and homes. When insuring or renewing your RV insurance policy, it might be a good time to re-evaluate your coverage to keep them in line with your expectations should you experience a partial or total loss of your unit.
But what about insuring these high-end rides? It’s more complicated than you might expect.
Insurance coverage options
Because these coaches are high-dollar homes on wheels, the insurance coverage required will differ depending on the amenities and how the coach will be used. When the insurance agent is writing your policy, your agent should discuss with your questions such as: Is your RV used primarily for business or recreation? Where is the RV typically located? Is the RV in a high-risk area? Who actually owns the RV – a company or an individual? Will there be a professional driver or will it be driven by the owner?
Replacement Cost vs. Actual Cash Value
Physical damage coverage for RV’s and high-end motor coaches will most likely be written on either a replacement cost basis or an agreed amount basis, and not actual cash value. If the physical damage coverage is on an agreed value coverage, you as the RV owner must keep the insurance value up to date so that if a serious loss occurs, the vehicle is not underinsured. To make sure that your policy meets with the current state of your RV unit, your insurance values should be reviewed and updated annually. This will account for any upgrades and maintenance that you might have performed over the prior year.
RV insurance experts recommend strongly that RV owners itemize the high-end, permanently installed features in the vehicle such as flat screen TVs, sound systems, GPS equipment, granite or quartz countertops, awnings, Subzero or other special refrigerators, and any custom finishes. A video or photographic inventory is critical to obtaining proper coverage and proper pay out when filing a loss claim.
Contents coverage
Getting your money back for a replacement RV is only part of the battle. Everybody fills their RV with personal effects, camping needs, gear and “toys”. Recreational vehicle policies usually provide some type of personal effects coverage. However, this coverage must be factored into and compared the personal property and contents coverage of the vehicle owner’s personal homeowners, condominium owners or renters policy.
RV owners are sometimes shocked to find themselves paying duplicate deductibles and facing disputes over which policy is primary when filing for a single loss. This situation can occur where duplication occurs between their homeowners/renters policy and their RV policy. RV owners need to make sure that they are not carrying duplicate coverages for their RV contents.
Toy Haulers
So called “toy hauler” RV’s tat have space to haul golf carts, ATV’s or motorcycles need to make sure that these smaller personal vehicles carry their own insurance coverage.
Additional Coverage
Optional coverage items to consider include rental reimbursement coverage and roadside assistance. If you are on vacation or even a full timer, and the vehicle becomes unusable, this rental reimbursement coverage will allow you to continue their trip while the coach is being repaired.
Roadside assistance coverage could easily pay for itself if the motor coach/home becomes unusable while at a great distance from your personal residence
Specialized RV insurance agents also urge RV owners to consider a personal umbrella liability policy with high limits. Coverage prices range from $290 for $1 million in coverage to around $26,000 for $50 million in coverage.