Holiday Lodge Insurance

Although it’s not compulsory by law to have caravan insurance to keep or use a touring caravan in the UK, even the most careful caravanner can encounter an unexpected mishap, (often through no fault of their own), leaving them exposed to substantial repair or replacement costs – and the associated inconvenience and distress.

Taking out quality touring caravan insurance cover is a cost effective way to protect your investment. Did you know that 1 in 20 caravanners found cause to claim on their caravan insurance policy, and the average caravan claims cost is equal to 16 times the annual caravan insurance premium!

Hardy caravanners are used to braving the changeable British weather, but floods, high winds, storms and heavy snowfall can cause significant and lasting damage to your caravan. The caravanning community is also especially vulnerable to theft, with most caravans containing expensive equipment and fittings. Most caravan insurance claims relating to road accidents are the result of snaking and crashing, or instances where caravans have become detached from the towing vehicle.

When looking for cheap caravan insurance online, it’s all too easy to be lured in by a low price tag, but if it sounds too good to be true then it probably is. Only specialist insurers fully understand how caravanners use their product, and tailor their policies to suit such use. When buying insurance for your caravan, be sure to check the basis of cover and watch out for hidden policy excesses.

It’s important to check you have the appropriate cover in place, as your car insurance will not cover the cost of repairing or replacing your caravan and its contents. It’s illegal to tow a caravan in some European countries unless you have bought caravan insurance, so having the flexibility to adjust the continental cover, personal accident and public liability to suit your needs is also important. Whether you have a caravan, touring caravan, static caravan or even a folding caravan, Shield can help find you the best possible insurance policy to meet your needs.

Whether or not you can insure something depends on a number of items, including: Legality, Exclusions and something called ‘Insurable Interest.’

Legality – There is a basic rule that forbids the insurance of something illegal. For example, burglars cannot insure themselves against loss of income caused resulting from them being sent to jail.

Exclusions – All insurances contain exclusions and/or restricting conditions. Some of these exclusions exist because insurers feel the premium they are charging is not designed to cater for that risk or because no premium could be large enough for the risk.

Insurable interest – When you buy insurance you are buying a promise that the consequence of any loss you suffer will be reimbursed in accordance with policy conditions. This is why it is vital that your policy is in the name of the owner(s) of the property to be insured. If you have a loan against your unit this will usually be reviewed as part of the claims process. However, if you are in any doubt, simply contact your broker and ask for the interest of your bank or building society to be noted. The same can be done if you own a unit with a friend.

We believe in offering high quality cover, to make sure that your touring caravan is properly protected should the worst happen. Unlike some other touring caravan insurance providers, we don’t believe in penalising you with a limited choice of options. We therefore offer three types of cover:

New for old (also known as reinstatement): This gives you cover for a like-for-like replacement caravan (or the closest available match); up to the value of the sum insured you have bought; in the event of a total loss e.g. an unrecoverable theft or irreparable accident. This is the best option if your caravan is new or nearly new – just remember to keep the replacement value of your touring caravan up to date with the current sum insured on your policy.

Market value (also known as indemnity): Your touring caravan insurance will cover the cost of an equivalent caravan, taking account of its age and condition. This is a good option for older caravans, as used values are currently holding up.

Agreed value (also known as guaranteed value): This is what the insurer will pay should your caravan be stolen or written off, less any policy excess applicable. Assuming you are in possession of a receipt or proof of purchase from a recognised UK dealer that is less than 5 years old, we can agree to insure your touring caravan for the amount shown in your Evidence of Insurance irrespective of the age of the caravan, or whether it is new or second hand (provided the sum insured is no more than the price you paid). This is a good option for vintage or classic caravans, or caravans with added extras beyond the standard specification for that make and model, to ensure you receive the same amount as you paid.

Having an adequate sum insured is extremely important. So how should you go about ensuring your sum insured is big enough? The following provides a guide:

New for old: It’s essential that you insure for the cost of a brand new unit of equivalent size and quality as supplied to you by a dealer plus an additional amount to allow for any increase in the price during the period of insurance being purchased. The same applies to furnishings, contents and equipment, the only exception being clothing and domestic linen where an allowance for wear and tear should be made.

Market value: The unit and its contents should be insured for their current market value taking into account age, wear and tear. Check your policy to ensure that no individual item is worth more than the maximum insurers will pay for a single item unless advised to us.

Agreed value: This is designed to ensure that in the event of a total loss, you get back the amount you paid for your unit (less any policy excess applicable). This is providing you have a purchase receipt from a recognised dealer that is less than 5 years old, the maximum settlement is limited to the amount shown in the Evidence of Insurance and the sum insured is no more than the price you paid for your touring caravan.