Jargon buster: Caravan Insurance terms explained
Whether you’re taking your caravan to Spain or Devon, understanding the terms and jargon included in your caravan insurance can be tricky.
If you’re an ardent caravanner, you’ll probably already be familiar with CaSSOA: the Caravan Storage Site Owner’s Association, which gives a security rating to caravan storage sites based on Bronze, Silver or Gold awards. CaSSOA will probably be mentioned within your policy wording in relation to storage discounts, but do you know what your insurer actually means by the word ‘home’, or what all the different levels of cover you can benefit from are all about?
Here we take a look at some insurance jargon, and what it really means for you and your caravan.
Clarifying the cover for you
When selecting your caravan insurance, as well as thinking about how you will use your caravan, it’s important to consider its value. This will affect whether you select a ‘new for old’ policy, or an ‘agreed’, or ‘market value’ option.
With this type of cover, provided you have the original receipts (issued within the last seven years) from the purchase of your caravan, plus its equipment and contents, and that those figures add up to the same as the amount you’ve insured your caravan for, your insurers will pay that amount of money to you in the event of a claim for total loss.
If you need to claim for a total loss under a market value insurance policy, your insurer will consider the age and condition of your caravan, plus its equipment and contents, to decide the amount you would have received had you sold your caravan at that point in time. This is the amount they’ll pay to you for your claim.
New for old
If your caravan cannot be repaired, or it’s been stolen and hasn’t been recovered, your insurer will replace the caravan with a new model that matches, as closely as possible, with the make, model and specification of your old one. The same goes for your equipment and contents. This is available to Club members for up to 15 years from new.
Cover and claims jargon
You’ll also need to think about what you need to include within your cover. Your policy will include the caravan itself, as well as the equipment and contents attached to and within it. There will be exclusions though, and it’s a good idea to make a list of everything you need to have covered, and to make sure these are added on.
Continental or European cover
If you’re planning to take your caravan touring abroad, you’ll need to ensure your cover extends to use outside of the UK. Take care to ensure the number of days that you’re insured for abroad covers all of your touring requirements. Do also check your policy for any countries that may be excluded. Club Care can offer up to 365 days’ European cover.
This is the payment you would make yourself, towards the cost of each and every claim you make. Some policies may offer a discount if you choose to have a higher excess level.
An exclusion is something that isn’t included within your insurance cover. You may find that you can add it back in if it’s something you really need cover for, such as insurance for your keys if they’re lost or stolen.
The level of indemnity is the amount that you’re covered for: that is, the compensation you’ll receive to put you back in the position you were in before your loss.
This is generally added on protection, offering you cover for locksmith charges, replacement keys and locks, and associated security if your keys are lost or stolen.
Legal expenses insurance
You can take out additional legal expenses cover to help you to reclaim uninsured losses if you’re involved in an accident that wasn’t your fault.
Loss of use
If something happens to your caravan that makes it uninhabitable, loss of use insurance covers you, up to a specified amount, for alternative accommodation.
This will cover you, and anyone staying with you in your caravan, in the event of an accident that causes them to be hurt, disabled, or in the event of death.
If, as a result of an accident involving your caravan, a member of the public is injured, or their property is damaged, this insurance covers the payments you may have to make to them for legal costs and compensation. It’s worth noting that generally this covers you while your caravan is unhitched, and that any damage caused to others as a result of an accident while towing your caravan should be covered by your motor insurance.
In the event of an insured accident away from home, your insurer will pay for you and your contents to be taken home. You may need to take out additional insurance if you wish to cover the repatriation of your caravan from abroad.
This is your insurance document, telling you the period your insurance runs for, and how much cover you have.
With some policies your sports equipment, such as fishing rods, wetsuits, dinghies, and surfboards may not be covered under your caravan insurance. If you have sports equipment, it’s best to select a policy that includes it as standard, or to request for it to be added on. For instance, cycles are very often excluded.
A total loss is, effectively, a write off. This means that the damage to your caravan would cost more to repair than to replace, or that it has been stolen and not recovered.
Storage and security terms
Where you store your caravan, and the security devices you have for it, can make a difference to the amount you pay for your insurance, so it’s worth understanding what these are, and how you can maximise the discounts available.
The Caravan Storage Site Owner’s Association gives a security rating to caravan storage sites based on Bronze, Silver or Gold awards. You may find your insurer gives a discount if your caravan is stored on a CaSSOA approved site.
Within your insurance wording, home refers to the boundaries of your permanent residence.
A wheel lock is a device that’s attached to the wheel of your caravan to demobilise it. Some policies recognise certain makes and models of wheel lock, and offer a discount for their use.
A more high tech security solution, tracking devices can be fitted into your caravan and will alert you if your caravan is moving without your knowledge. Insurers often recognise the use of proactive tracking devices with a premium discount.
Clarifying caravan cover, flexible for your touring needs
Once you’ve clarified the cover provided by caravan insurers with our jargon buster, it’s much easier to select the solution that best suits your own situation.
Club Care touring caravan insurance has been designed especially for members of The Camping and Caravanning Club. It offers tailored caravan insurance giving you the flexible protection you need, with competitive prices to match your caravan use and your budget.