Rv Insurance: What Owners Need To Know

RV insurance is a legal requirement in almost every state in the US. The type of insurance you need depends on how you use your vehicle. If you live in your RV full-time, you will need full-time RV insurance, which typically includes comprehensive and collision coverage, personal liability protection, medical payments coverage, and loss assessment coverage. If you use your RV for vacations, you will need part-time or recreational RV insurance, which includes vacation liability coverage and the option to add on other types of coverage. The cost of RV insurance varies depending on factors such as the age of the RV, how often it is used, and the level of coverage.

Full-time vs part-time RV insurance

RV insurance is a necessity for both full-time and part-time RV users. The type of insurance you need will depend on how often you plan to use your RV. Full-time RV users will require different coverage than someone who only uses their RV occasionally.

Insurance companies determine whether you are a part-time or full-time user by the number of days your RV is in use during the year. While the number of days that constitutes "full-time" use varies by company, the industry standard is 150 days per year.

If you are a part-time RV user, you will want insurance that covers your vehicle while it is being used and while it is parked at a campsite. This includes general liability protection, physical damage coverage, and personal effects coverage, which covers the loss or damage of items you carry inside your RV.

Full-time RV users will want insurance coverage that more closely resembles a homeowner's insurance policy since their RV is their primary residence. This includes everything that part-time insurance offers but with higher limits and additional coverages. Full-time policies offer more comprehensive liability options and higher coverage limits for personal effects since the RV is used as a primary residence.

Full-time RV insurance may also include:

• Full-timer's liability: Comprehensive personal liability coverage.
• Emergency expense coverage: Provides higher limits for lodging and meals when the RV is unusable due to a covered peril.
• Secured personal effects: Coverage for belongings stored in a commercial storage facility.
• Scheduled personal effects: Coverage for high-value items kept in the RV.
• Medical payments coverage: Covers medical costs for visitors injured inside or near the RV.
• Uninsured/underinsured motorist coverage: Protects you in case of an accident with a driver who doesn't have insurance or whose liability limit is too low.
• Total loss replacement coverage: Covers the cost of a replacement RV in case of a total loss.
• Personal property and belongings coverage: Covers personal effects and valuable equipment, whether parked or on the road.
• Attached accessories coverage: Covers awnings, satellite dishes, and other attachments.

In conclusion, the main difference between full-time and part-time RV insurance lies in the extent of coverage and the policy limits. Full-time RV insurance provides more comprehensive coverage, including homeowner-style policies, while part-time insurance focuses on liability and physical damage protection for occasional use.

Actual cash value, replacement value, and agreed value

When it comes to RV insurance, there are several types of coverage to consider, including actual cash value (ACV), total loss replacement (TLR), and agreed value. Each of these options offers different levels of protection and has distinct advantages and disadvantages.

Actual Cash Value (ACV)

Actual Cash Value policies are the most basic level of protection offered by RV insurance companies. In the event of a total loss, your insurance provider will pay out the current market value of your RV, minus depreciation and your deductible. This type of coverage is the most affordable option, making it a popular choice for those with older or used RVs. However, it's important to note that the payout may not be sufficient to cover the cost of a replacement RV due to depreciation.

Total Loss Replacement (TLR)

Total Loss Replacement is the highest level of protection available. With TLR, your insurance company will replace your RV with a new one of similar make and model, regardless of its current market value. This type of coverage is typically only available for RVs less than five years old, and it comes with higher annual premiums. TLR protects you from depreciation, ensuring that you can replace your RV without incurring additional costs.

Agreed Value

Agreed Value coverage is when you and the insurance company agree on a set value for your RV ahead of time. In the event of a total loss, the insurance company will pay out the agreed-upon amount, less your deductible. This type of coverage is useful for RVs that don't have a standard market price, such as custom or used RVs. Agreed Value coverage gives you peace of mind, knowing exactly how much you'll receive if something happens to your RV. However, it's important to note that not all insurance companies offer this type of policy, and it may come with higher premiums.

When choosing between these coverage options, it's important to consider your financial situation and the value of your RV. If you have a loan on your RV, you may also want to consider Gap Insurance to cover the difference between the loan amount and the actual cash value. Ultimately, the right choice depends on your specific needs and budget.

Self-built RVs

In recent years, insurance carriers have been declining coverage for self-built RVs/RV conversions. Even thorough documentation of the building process might not be enough to ensure coverage. This is because insurance companies are wary of the durability and longevity of DIY work. They also have no company to turn to if an incident occurs due to faulty work.

However, some insurance companies do provide coverage for self-built RVs. For example, Progressive offers coverage for professionally converted campervans, but not for DIY van conversions. Roamly, a new insurance company catering specifically to RVers, also provides coverage for self-built campervans. But, as of November 2023, they no longer provide insurance policies for DIY camper vans that are lived in full-time.

If you are looking to insure a self-built RV, it is important to be honest and upfront with your insurance company about the nature of the build. It is also a good idea to carefully document the building process, including keeping receipts and invoices, tracking labour hours, and taking detailed photos of the build. This will help the insurance company assess the value of the RV and provide appropriate coverage.

It is worth noting that insuring a self-built RV can be challenging and may require more effort and patience. The availability of coverage may also depend on the state and specific circumstances.

Personal contents coverage

In the unfortunate event of a covered loss or theft of your RV, personal contents coverage can help you repair or replace your personal belongings. This coverage can be a valuable safeguard, especially if you have valuable items or sentimental possessions stored in your RV. It ensures that you have the financial means to replace or restore items that hold personal or monetary significance.

When considering personal contents coverage, it is advisable to document your belongings with photos and receipts. This proactive approach will assist your insurance agent in the event of a claim, making the process smoother and ensuring you receive fair compensation for your lost or damaged items.

Loss of use/emergency expense coverage

Typically, this type of coverage will provide a set amount, such as \$750 to $1,000, to cover expenses like hotel stays, rental cars, transportation, and food. This can be extremely valuable if you are stranded far from home or need to find alternative accommodation quickly. For example, if your RV breaks down more than 50 miles from your primary residence, your loss of use/emergency expense coverage can help you get back on the road or find a place to stay until repairs are made.

The specific details of loss of use/emergency expense coverage can vary between insurance providers and policies. Some policies may include this coverage at no additional cost when you purchase comprehensive and collision coverage. In other cases, you may need to pay an extra fee to increase your coverage limit. It's important to carefully review the terms and conditions of your RV insurance policy to understand what is included and what additional coverage options are available.

Additionally, some insurance companies offer specialised coverage for full-time RVers, who live in their RVs for six or more months out of the year. This type of coverage may include higher limits for loss of use/emergency expenses, recognising the unique needs of those who rely on their RV as their primary residence.

Frequently asked questions