What is caravan holiday home insurance and which product do you need?
As with insurance you buy for your home, your car, or any other significant possession, insurance for your holiday home is peace of mind and protection for one of your most important assets. Of course, there are different types of insurance, so be sure to get the right cover and at the right level for your caravan.
Even though it's not your main residence, you'll still want to know you're covered in case of accidental damage or theft.
Different types of insurance
If you have a static caravan holiday home, insurance is just as important as if you have a touring caravan, trailer tent or folding camper. You'll typically site a static caravan in a fixed location, like a holiday park or caravan site. It's important to buy adequate cover not only for the caravan itself, but also for your possessions inside.
Trailer tents or towed caravans have different cover because there are different risks. As they are less secure, it can be more difficult to get specific cover for contents. Even if your car is insured adequately, it is not likely to cover any towed vehicle, so do be sure to look into specifics. Insurance is a legal requirement for your car, but is not mandatory for caravans. Campervans are different again.
Static caravan holiday home insurance is more similar to your home insurance and there are specific areas you will want to make sure are covered. Like home insurance, it should cover accidental damage from storms etc. New for old is a good option for static caravans. If your caravan is less than 10 years old, cover should be at a level to replace your caravan in the eventuality of complete destruction, like a fire. You will also need to be insured for re-siting and clearing debris.
If you are planning to rent your property, there are other things you'll need from your caravan insurance quote, like public liability insurance, cover for family and friends, perhaps even protection against fatal injury. Insurers will often require that your static caravan is on a licensed park which has a level of security.
Similarities with home insurance
There is likely to be an excess on your caravan insurance, which is a contribution a policy-holder pays towards the claim. It is sometimes split into a compulsory excess and an additional voluntary excess. Whilst a compulsory excess might be deducted from a settlement payment, a voluntary excess is an amount agreed at the outset that a policyholder will pay in the event of a claim. Agreeing a higher excess can lower the overall premium, and you should be clear about how you would pay the sum if required to do so.
There will be exclusions, such as limitations on the amount of time someone is using the caravan or preventing it from being used for a business other than as holiday accommodation. You might also accrue no-claims bonuses if you don't claim on the policy.
Make sure the insurance you gain provides the amount of cover required to make sure you and your friends and family are covered correctly.