Getting insurance is always a significant task when buying a house, car, or motorcycle. What a lot of people fail to consider is insurance for their Recreational Vehicle (RV), motorhome, or travel trailers. Insurance is always smart, but it is a necessity if you travel and/or live in the vehicle you are traveling with.
All basic policies should cover you in two situations. First, if your travel trailer, motorhome, or RV becomes damaged or stolen. The second is monetary liability protection in case of an accident where another person or their property is damaged.
Let’s take a look at some basic points you should check out when getting RV Insurance. Keep in mind policies and coverage will vary depending on the providers and the type of RV you have, so shop around.
There are four basic types of travel trailer, camper, or other RV coverage:
Owners of motorhomes are required to carry the state minimum insurance requirements for personal injury and property damage liability but travel trailer owners do not. In some cases, the vehicle coverage may extend to the travel trailer (at least while actively towing) but coverage may not be enough for the damage or loss sustained, so additional coverage should be considered before taking your RV on the road.
Liability RV insurance provides financial coverage against your liability for damage to others' property or bodily injury. Liability insurance is a requirement for drivable RVs, like Class C's or Class A's. State requirements only set a minimum, but additional liability coverage can be purchased.
For motorhome owners, PIP insurance is required just as it would be for a driver of an automobile. PIP insurance covers medical expenses caused by an accident for the driver and any passengers. PIP coverage is designed to encourage injured parties to seek medical attention without having to worry about who was a fault and what coverage the other party has. Florida requires a minimum of $10,000 coverage. Additional coverage can be purchased, but is usually titled under Medical Payments.
As it does with auto insurance, collision coverage pays for repairs to your RV if the collision is with another vehicle or non-living object (like a pole or guardrail).
Comprehensive RV insurance provides coverage for other damage not covered under Collision insurance. These covered incidents can include:
As with vehicle insurance, it is unfortunately common for people to not insure or not have enough coverage for the total cost of damage incurred. When this happens, you can be left with the financial liability of repairs or replacement (or attempting a civil suit yourself to recoup damages). Having uninsured/Underinsured coverage can help mitigate expenses and get your RV back to road-worthiness or replaced if damage is too severe.
All Perils means everything is protected except what is on the provider’s exclusion list. Named Perils is a policy where you get to state what dangers you need to be covered for like theft or wind damage for example. The more named perils you add, the higher the premium.
There are three types of loss protection: Agreed Value, Actual Cash Value (Market Value), and Purchase Price Guarantee (Total Loss Replacement). These are different options to recoup the financial loss if your RV or camper is deemed at Total Loss.
*Industry average time frame. Some carriers may have longer or shorter Purchase Price Guarantee timeframes and can have different stipulations for payout vs replacement options. Check individual carrier options before enrolling in coverage.
For individuals who live in their camper year-round, either in one location or on the road, there is insurance coverage available for their unique living arrangements. Full-timer RV insurance coverage works more like a homeowner's insurance policy with liability and property damage coverage.
This may also be available under the name Campsite Liability Coverage and is a great coverage for those who take their RV out periodically for recreational/vacation use. This insurance coverage provides property damage and liability coverage while parked at a campsite, but not to the extent that Full-Timer Coverage includes.
A good RV insurance policy will give you coverage for property damage, protection for the parts of the vehicle, public liability, roadside assistance, and emergency vacation expenses. The best thing to do is to compare a few different companies, and the best way to do that is usually through an insurance broker. The independent insurance agents deal with more than one provider and can assist you in defining what you need and find the best insurance package for your recreational vehicle.