Caravan Insurance

A caravan is a major investment, but it's also much more than that, because it's often responsible for the success of a holiday, or may even be a temporary or long term place of residence. Whether you consider a caravan to be a home, a holiday or a form of transport, it's essential to make sure that not only is it covered by a suitable caravan insurance policy, but that the policy covers those issues of direct concern to you and your circumstances.

What Is Caravan Insurance?

Caravan insurance can be broken down into two main types. There is caravan insurance for touring caravans, which are those typically towed by a car or other vehicle, and then there is insurance for static caravans, which despite the name, can be moved and relocated, but only with the use of a large truck and even then, only very occasionally, if at all.

Touring caravans and static caravans share many risks in common with each other, resulting in many overlaps between the two forms of caravan insurance. But there are also several distinct differences between the two types of caravan, both physically and in terms of their use.

For example, touring caravans are usually much lighter, and therefore less secure, and they are also more prone to damage during transit. On the other hand static caravans are unlikely to require European cover.

What Are The Different Types Of Caravan Insurance?

The two main types of caravan insurance are static caravan insurance and touring caravan insurance, and further information on each of these two types can be found in the relevant sections of this website. However, as a general guide the issues which are covered, either as standard or optional extras, include the following risks:

• Cover against damage or loss of caravan as a result of fire, flood or storms
• Cover against theft
• Cover against accidental damage and malicious damage
• Public liability cover
• Loss of use of the caravan
• Loss or damage of caravan contents, accessories or equipment
• European and worldwide cover
• Friends and family cover
• Legal expenses cover
• Roadside recovery

Additionally it is important to be aware of the fact that there are three different levels of cover usually offered as part of any caravan insurance policy, whether for touring or static caravans. These include:

• New for Old - If your caravan is less than 5 years old then your insurer will usually offer a new for old arrangement, which means that if your caravan is lost or irreparably damaged, through such things as fire, flood, storm damage, accidental damage or malicious damage, then your insurer will simply provide you with a new caravan of the equivalent type. This requires the caravan to be fully insured for its full value.
• Agreed Value - This is a good option if the caravan is less than a year old. As long as it was purchased from a registered dealer, and both this fact and the price paid can be proved, insurers will usually be able to agree to provide compensation up to the full price paid. After the first year this is likely to switch to a New for Old arrangement, which may also lower the premium slightly.
• Market Value - This is usually the least expensive of all of the types of caravan insurance, and is ideal for caravans of a lower market value or over 5 years old. In this case the insurance company will cover the caravan up to the current market value, according to the industry standard Glass's Guide.

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