Friday, May 20, 2011

Motor Home Insurance Coverage

The information that follows is fairly broad and general in description. Insurance coverage's can vary significantly due to state statutes. In your own state you may find coverage's that aren't described here, such as Personal Injury Protection and Property Damage Un-/Underinsured Motorist Coverage. In the case of insurance the state and the company can make big differences so as they say, your mileage may vary.

Put another way, you may not be able to get the same coverage your friend in another state has.


The most important advice I would give is that you read your policy. While I realize that they can be confusing and boring you will learn something about coverage. When it comes to personal property coverage and total loss coverage be sure to read the Loss Payable Clause. It will help you to understand what will happen in those events. In fact, reading the Loss Payable Clause for any of the coverage's will help you understand what you can expect when it comes time to report a claim. It will also help you decide if you are purchasing the right coverage and the right amount of coverage.

One issue of importance is the total loss provision of the vehicle. Should the RV become a total loss under your collision or comprehensive coverage's how will you be compensated? You could receive actual cash value, replacement cost, purchase price, stated value or agreed value depending on the coverage you have purchased.

Actual cash value is the amount equal to the replacement cost minus depreciation at the time of the loss.

Replacement cost is the actual cost to replace the vehicle at the time of loss.

Purchase price coverage would pay you the amount you paid at the time you purchased the vehicle when you experience a total loss.

The next two sections discuss the differences between stated value and agreed value. If you are interested in one of these types of coverage be sure to review the Loss Payable Clause when you receive the policy. Do not depend on your agent to verbally assure you of what will happen in the event of a loss.

Stated Value Policies
Instead of straight "actual cash value" coverage , there is an endorsement that allows for specific limits. This is also known as a "stated value" policy . These limits can apply to a policy including only Comprehensive Coverage or a policy that includes both Comprehensive and Collision Coverage .  The most the company will pay in the event of a loss is still the actual cash value or the cost to repair, up to the "stated amount."

Agreed Value Policies
Agreed value guarantees a set amount of coverage agreed upon at the time the policy was issued and is generally accepted as the best position for the owners of classics, unique, or highly modified vehicles. It carries a number of advantages:
• Allows the driver to secure and present a professional appraisal of the vehicle that they accept as a valid representation of its worth.
• Unlike standard insurance, the value of your RV does not depreciate over the life of the policy.

BODILY INJURY
Bodily injury liability coverage covers your legal liability for the injury or death that you, or any permitted user, may cause with your RV. The first bodily injury insurance dollar amount displayed (e.g. $100,000 of $100,000 / $200,000) is the maximum amount the insurer will pay per injured person. The second bodily injury dollar amount is the maximum amount the insurer will pay overall for one accident, regardless of the number of people injured.

PROPERTY DAMAGE

Property damage liability coverage covers your liability for damage to property of others that you, or any permitted user, cause with your RV. The property damage coverage dollar amount shown in your coverage declaration page is the maximum amount the insurer will pay for all property damage to others that you cause in any one accident.

Bodily injury and property damage can also often be purchased in what is known as a combined single limit. For example in amounts of $100,000, $300,000, etc. In this case the total amount can cover one single individual or be divided amongst several parties.

MEDICAL PAYMENTS

Medical coverage covers medical or funeral expenses for anyone injured by a covered loss while in your RV. Motorhome insurance with medical coverage also covers you and your family members as a passenger in another automobile or as a pedestrian if struck by an automobile. The dollar amount of this insurance option with medical coverage chosen is the amount your insurer will pay per person injured or killed. Carriers generally cover only the named insured person(s) on the policy.

UN- / UNDER-INSURED MOTORISTS

This coverage applies to damages that you are legally entitled to because of a vehicle accident when the person responsible for those injuries does not have liability insurance or adequate insurance limits.
The first dollar amount shown on your uninsured / under-insured motorists coverage is the maximum amount your insurer will pay per injured person. The second dollar amount shown is the maximum amount your insurer will pay for any one accident, regardless of the number of people injured. This generally can cover medical, wage loss and pain and suffering type damages. Again, an insurer may offer a combined single limit coverage as an option.

OTHER THAN COLLISION

Also known as comprehensive coverage, this protects the vehicles listed on your policy for damage caused by losses other than collision. Examples of RV OTC coverage include fire, theft, wind and crashes with an animal or inanimate objects. RV OTC coverage is not automatically added to your insurance policy. This coverage is also generally subject to a deductible which you would pay with the insurer paying the amount in excess.

COLLISION

This coverage is also subject to a deductible and the insurance company pays the rest. This coverage pays for the damage caused when your RV collides with another vehicle or object. If you are at fault for the accident you will have to turn to this coverage or pay the loss out of pocket. If there is a dispute as to fault you may have to use this coverage for repairs. It is always subject to the deductible regardless of fault.

TOWING AND LABOR

This provides coverage for towing and labor for any single occurrence up to the amount chosen.
Please note that coverage from Coach Net only covers towing required due to a mechanical breakdown. If you need to be towed for any other reason, you will need towing coverage on your primary policy.

REPLACEMENT COST – PERSONAL EFFECTS

This optional insurance coverage covers your personal property inside your motorhome. Should covered items be damaged, destroyed or stolen, they will be repaired or replaced with a new item of like kind and quality (new or old). Certain items such as antiques, art and jewelry have a limitation of coverage.
Be aware that some policies may require you to actually replace the item before they will pay the replacement cost.
Keep in mind that you may already have coverage for personal property that would cover you if you have a homeowner’s, tenant's, or condominium policy. However, check them for the coverage away from the premises. It is generally limited to 10% of the personal property coverage limit while away from the premises.

VACATION LIABILITY

This optional coverage covers your legal liability for a covered loss resulting in injury, death or property damage that occurs in your Recreational Vehicle or on your campsite.

FULL-TIMER

This coverage is much like the Personal Liability Coverage provided by a homeowner’s policy. It covers much more than Vacation Liability Insurance and is designed for people who use their RV six or more months out of the year.


Written by a fellow who spent years in the insurance industry

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