Insurance 101: Insuring your RV, Motor Home or Motor Coach

For the experience and convenience of hitting the open road, many people are investing in luxury model RVs and Motor Homes. On the higher end side of things, a Motor Coach may be a mode of transportation with all the luxuries of home. Having the right insurance coverage to protect your investment and assets is important – and not everyone is well versed in the right coverage for the more advanced vehicles.

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1.?????Limitations with certain Insurance Carriers

·????????Some insurance carriers have a lack of comfort and knowledge when it comes to high-end recreational vehicles. Based upon the high replacement value, insurance companies will often have coverage limits as to what they will pay in the event of a loss. Even if the insurance company initially approves a vehicle’s value, a claim could be challenging because some insurance carriers are not familiar with high replacement cost valuation and lengthy repair and expenses with a customized recreational vehicle.

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2.?????Things to Consider

·????????Certain RVs and smaller campers are easy to insure, and easy to replace. The insurance is largely based upon the length and weight of the vehicle, and the operator’s loss history and experience driving a similar vehicle.

·????????Most RVS and Motorhomes do not require a commercial driver’s license, but in certain states, which may be a requirement. Check with the DMV prior to purchase.

·????????If you intend on operating the vehicle, be clear on any occasional drivers, and have them trained on the vehicle through a state course or with the manufacturer.

·????????An Agreed Value or Stated Value basis on your auto is important including specialty parts, equipment and tools designed to service each vehicle.

·????????Modifications made to a recreational vehicle for performance or aesthetics needs to be disclosed and reviewed by your insurance agent or broker.

·????????Ensure that your insurance policy includes personal contents inside the vehicle that are not permanently installed, such as clothing, electronics, furniture, and decor.

·????????Understand your “loss of use” and “emergency services” coverage in the event of a disablement, claim or total loss. In the event of a total loss, the occupants of the vehicle will need emergency assistance and a stay in a hotel or airfare returning home. Some policies only cover basics like flat tires, emergency gas, or key lock out services.

·????????Personal liability is one of the most crucial items to secure. The larger the vehicle, the more significant the damages could be in an accident; for that reason, we recommend personal liability limits of no less than $500,000 or $1,000,000 USD, and a minimum of a $1,000,000 personal umbrella policy.

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?3.?????Maintenance, Garaging and Storage

·????????Maintenance: If you enter into a contractual agreement where a company stores and maintains your vehicle while not in use, ensure that they carry coverage for physical damage and liability while your vehicle is in their care custody and control.

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·????????Garaging: Many RV/MH/MC owners will elect to have their units garaged in an enclosed, climate-controlled warehouse. Always confirm this address with your insurance agent or broker to ensure that in the event of a loss, there are no complications with a vehicle garaged out of state or outside the state listed on the insurance card or policy.

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·????????Storage: We always recommend removing any personal items from the vehicle when parked or stored for a length of time. Higher-end safety features like window etching, alarms, passive and active disablement devices are often credited with most insurance carriers.

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4.???Actual Claims on RVs, MotorHomes, and MotorCoaches

·????????TO GO ORDER

A family leaves Florida for a cross country vacation to the Pacific Northwest. Before they are 250 miles outside of Florida, the kids want to stop for food. The driver thinks the approach to the drive through is wide and tall enough to go through. It wasn’t. Over $40,000 in property damage to the drive through, and over $25,000 in property damage to the MotorHome.

·????????HAIL BOUND

Out of state Lacrosse tournament, and our driver packs in 5 athletes into a brand new, 40-foot Motorhome, headed for Colorado. While parked, the Denver area experiences one of the worst hailstorms on record. The brand-new Motorhome sustains over $100,000 in cosmetic damage to the exterior, glass and interior (water damage).

·????????THE CHARGER

Our MotorCoach owner keeps his MC at a high-end facility that washes, maintains and fuels up the vehicle in-between trips. There is also a trickle charger on the batteries and a slow pump on the tires that is always on. The new hire that was servicing this unit left several appliances on and the charger on full – there was a fire on the interior, after hours and the motorhome was out of commission for 4 months being rewired and having the interior completely refabricated.

·????????LOST KEY

Our client was an RV novice, and did not prepare for the unique circumstances that can happen with auto locks. On a quick stop, everyone gets out of the RV, the dog stays inside. The dog accidently locks the doors with everyone’s phones, keys, wallets inside. 3 hours later, there was a locksmith that gave them access. This is after a failed attempt to slip through the roof vent, that later cost $4,000 to properly re-seal and repair.

·????????WRECKED VACATION

New purchase of a Motor Coach, and the client’s family flies in – takes possession of the vehicle, with the goal to drive all over California, and then drive home to TX. During the drive, one of the biggest wildfires in CA state history occurs, and the vacation is ruined with re-routes and panic, navigating a huge vehicle in very dangerous conditions.

??When our clients invest in ‘recreation’ of any kind, our goal is to outline what can happen, and ensure that the right coverages are in place, prior to a loss.????JMP??

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Experts in insurance solutions for successful individuals, families and businesses.???

?Jason M. Pond, CAPI, CPRIA – Shareholder / Personal Risk Management

972-715-8703 – Direct?/?972-342-8645 – Mobile /?[email protected]??