What is Static Caravan Insurance?
Static caravan insurance in short is a type of home owners insurance for caravans that have permanent residents.
Insurance companies have recognized the fact that people make caravans their homes and as such have developed policies that cover damage to caravans from fire, theft and burglary.
Many insurance companies offer a new-for-old policy that replaces the value of the caravan in today’s market. This means an older caravan that is destroyed may be replaced at current market values, rather than at the depreciated value of the damaged caravan.
Insurance Values or Static Caravan Insurance Coverage:
Most companies that offer static caravan insurance coverage offer either a new-for-old policy option or a market value cover option.
New-for-old:
The new-for-old policy coverage replaces the caravan as if the caravan is brand new and not at the depreciated value of a used caravan.
This means that is the caravan meets all of the requirements of the policy the owner will be compensated for the cost of a similar caravan at today’s prices. Payment would also include the market value of the contents of the caravan.
There are restrictions to how this type of policy works. Each insurance carrier has a different set of policy requirements. It is best to shop around for quotes. One of the largest differences in insurance policies is the age of the caravan when the policy is created.
These new-for-old policies do not have to be started on a brand new caravan. A policy can often be started on a caravan that is less than 5 years old.
Again, however, these requirements change from an insurance carrier to another insurance carrier. It becomes very clear that there is a benefit from checking the facts of each insurance carrier.
Market Value Insurance Coverage:
The market value insurance coverage is just as the name implies. This insurance policy covers the loss of a caravan at the current market value of the caravan.
This means that depreciation becomes a point of concern. It is important to know how the caravan depreciates so that the owner can understand how they will be compensated in the event of a total loss.
Static or Touring:
In the case of caravan insurance, there are two types of policies. The first type of policy is for static caravans. These are caravans that are kept in one place. The second type of policy is for touring caravans. The touring caravan is moved from place to place.
Static caravan insurance rates are based on the permanent location where the caravan will be set up. Historically, insurance claims that are made on static caravans have a high occurrence of flood damage.
This means that the permanent location where the caravan will be situated becomes an important aspect of determining qualification for insurance. The location also becomes a point of interest that can affect the rates charged to insure the caravan.
Key Considerations:
Replacement Value: If the caravan is a home then it makes little sense to insure the caravan for fair market value. Consideration of how the caravan depreciates is important. Many insurance companies offer new-for-old policies for caravans that range from 5-20 years old.
The benefit of the new-for-old policy becomes an asset to the owner of the caravan. Compare the pay-out for a loss on a 20 year old caravan to the replacement value of the same caravan in today’s market.
Lapse of Coverage:
New-for-old policies require that insurance coverage be continues and without a lapse in coverage. This is important because a lapse in coverage on an older caravan may mean the loss of the new-for-old policy.
In short, it is important to check with several insurance providers to see which one will offer the best insurance rates and coverage.
Caravan fires are much more common than most people realize also, and due to the confined space inside static caravans fire can easily get out of control. The best way
to demonstrate this is from the popular T.V. show Top Gear, watch the video below: