Recreational vehicles (RVs) offer a world of new travel opportunities, but they also pose some new challenges in terms of insurance coverage. When you consider how much money you must invest into these oversized conveyances, you can see the importance of insuring that investment against theft and damage.
RV insurance comes with its own set of options, requirements, and limitations, so it pays to understand as much as possible about this form of coverage before you leap into a commitment. Check out the answers to these frequently asked questions about RV insurance.
Who Needs to Purchase RV Insurance?
If you have a towable trailer instead of a powered RV, you may have the option of adding it to your homeowners insurance. However, some policies only provide limited coverage (if they allow for the provision at all). RV insurance for your trailer will most likely offer more complete protection.
Additionally, you may have fewer options if you rent or make regular payments on your trailer instead of owning it outright. In this situation, the lender (who has a vested interest in that item’s welfare) may force you to carry RV insurance.
You also need to know that any RV that moves under its own power must carry the same kinds of basic liability insurance coverage required by your state of residence. For instance, Georgia RV owners must carry at least $25,000 in single-person injury coverage, $50,000 in multi-person injury coverage, and $25,000 in property damage coverage.
What Coverage Does RV Insurance Include?
RV insurance includes numerous protections above and beyond basic liability coverage, including the comprehensive, collision, and uninsured or underinsured motorist coverage many car owners typically purchase. Other options include coverage for custom equipment, vacation liability, and roadside assistance.
Bear in mind that the personal effects inside your RV probably won’t enjoy protection under your RV insurance policy. Even if your homeowner’s policy does cover these personal effects, that policy may not apply once you travel outside of your home state. An experienced insurance agent can help you resolve this concern.
Additionally, you may not have to maintain (and pay for) every aspect of your RV coverage if your RV sits in storage for much of the year. As a money-saving measure, ask your insurance agent whether you can get a policy that lets you switch off some coverage features without losing the overall coverage on the vehicle.
How Do Your Insurance Needs Change When You Live in Your RV?
Most RV insurance aims to safeguard holders against costly problems that may occur during vacations or extended road trips, treating the RV as a vehicle instead of a residence. However, many RVers decide to make their RVs their home — a move that can complicate their insurance needs.
If you want to live in your RV, you’ll need to purchase something called full-timer’s insurance. Full-timer’s insurance acts as a combination of auto insurance and homeowners insurance. Unlike standard RV insurance, for example, it includes coverage for personal effects and medical costs for personal injuries in or near the vehicle.
How Do Different Kinds of Coverage Work in the Event of a Total Loss?
The total loss of an RV can represent an enormous financial blow to owners who might otherwise have no means of replacing it. You must consider this prospect when choosing your RV insurance, especially if your RV doubles as your home.
You’ll find three primary categories of total loss replacement in RV insurance policies. The least costly of these replaces only the actual cash value of your RV at the time of its demise. An agreed value policy lets you determine your compensation beforehand. Full loss replacement completely covers the full value of a new vehicle.
While any vehicle can qualify for basic cash value replacement, many agreed value policies only cover RVs of a certain age. Insurance carriers reserve full loss replacement policies for RVs less than one year old. You may therefore need to downgrade your total loss replacement coverage as your vehicle ages.
Kenneth Rhodes and Associates Inc can help you get the coverage you need for all your vehicles, including your RV. Contact our team to learn more and receive a quote.