Caravan owners warned to insure at replacement value - not resale value
A caravan insurance specialist is urging owners of touring caravans to check the new for old sum insured value on their policy schedule to make sure they don’t lose out in the event of a claim.
Richard Burgess, Director at Cover4Caravans.co.uk explains: “Many caravan insurance providers offer a new for old replacement option on touring caravans, typically those up to 3 – 5 years old.
“This means that if you bought a caravan in 2013 and this year it is stolen or damaged so badly that it needs replacement, in the event of a successful claim, you will get your tourer replaced on a new for old basis.
“You do need to be aware that the current replacement value of your touring caravan is reflected on your policy schedule, so you should check this sum every time you renew your cover. This is because the value may have changed.
“If you bought your caravan for £10,000 4 years ago, is it still worth £10,000 - or would it cost £12,000 to replace it?”
He cites the following example:
- if you bought a Pegasus Ancona in 2013, its current resale value would be around £15,000.
- to replace your Pegasus Ancona as new today however, prices start at around £18,179.
He adds: “So, when considering the sum insured value under the new for old section of your touring caravan insurance, you need to think about how much it would cost to replace your caravan at today’s prices – not its resale value.
“In the case of new for old replacement on your tourer caravan, in the event of a successful claim for loss or irreparable damage, you will not receive an amount more than what is stated on your policy schedule.
“Of course, the price to replace your ‘van may have actually gone down, so let your insurer know - you could save money on the cost of your caravan insurance premiums”.
Richard Burgess, MCIM, ACIEH, Cert CII, Director at Cover4Caravans, telephone: 0845 863 9558 or email: firstname.lastname@example.org
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