A big part of static caravan and lodge insurance is how much to insure for. Not only will this often affect how much you’ll pay for your policy but it’s also vitally important in the event of a claim.
We’ve had an unusual amount of storm claims this year and it’s highlighted the importance of making sure that you have enough cover. It’s only in the event of a significant claim that this will come into question, so it’s important to get it right and keep an eye on it! In the current climate we’ve seen manufacturer RRPs increasing by anything up to 10% in some cases. This means if you are insured on a ‘New For Old’ basis you may need to increase your ‘sum insured’.
WHAT DOES SUM INSURED MEAN?
The sum insured is the maximum amount your insurance company will pay in the event that your holiday home is totally destroyed or badly damaged. You will generally be asked for two sums insured:
1. The Structure
2. The Contents
The structure is the holiday home and its fixtures and fittings. The NACO insurance policy also covers things like decking, verandas and skirting under the structure section of the policy. Make sure that you check your own insurer to what they cover. You also need to consider debris removal and re-siting costs too. At NACO we offer cover for this under an extension to the policy – but some insurers want you to include this within your overall sum insured.
Choosing how much to insure for is your own decision – there’s some guidance on our website about ‘market value’ and ‘new for old’ cover.
If you’ve just purchased a caravan or lodge deciding how mush to insure for is easier. However, if you want further guidance, speak to your park manager or give us a call on 01255 820 321.
When it comes to contents, static caravans and lodges are a little different to bricks and mortar houses as they come with lots of items from the factory. Your contents sum insured will be something that you need to consider based on what you’ve ‘added’ to the holiday home. You also need to bear in mind that some things aren’t covered.
We try our best to help out and advise with sums insured but ultimately it will rest on the policyholder to make sure that they have enough cover. We have heard some tragic stories recently where people were insured elsewhere and just didn’t have enough to replace ‘like for like’.
For more information on this, read your policy or call one of our Insurance Cover Team on 01255820321.