The first thing you might want to consider is whether to insure your caravan on a new for old, or a market value basis. The value you insure your caravan for will differ depending on which you choose so we've broken this guide down into two sections so as to explain each type of cover and how you'll find the subsequent value.
New for old insurance for touring caravans is designed to replace your caravan as new in the event of a total loss claim. So if you have a 2013 model Bailey Pegasus Rimini and it was stolen and not recovered, you'd be entitled to a brand new 2023 model as your replacement.
It's important your sums insured reflect the value of the new model for this to work.
If you’ve had your caravan for more than a year you should always look up the current cost of a new model. They will often have gone up in value when compared to last year’s price. It's very straight forward to find out the cost of your caravan as new even if you didn't buy from new yourself.
You can usually find price lists online by visiting the manufacturer's website or call them. Bailey for example publish their price lists each year and provide the cost of added extras as new too. If they don't make your model any more all you need to do is find the closest equivalent model. Just make sure you would be happy with your chosen replacement, layout can be extremely important and can make a huge difference depending on how you use your caravan.
Insuring your caravan on a market value basis means that in the event of a total loss claim, you will receive current value of your caravan so you can buy a like for like replacement. It's the equivalent of the resale value of your caravan and is sometimes the only choice if you have an older touring caravan.
Much like you would with a car, you can start by having a look online at similar models and how much they cost at the moment. Ebay and Preloved are both good places to start.
It’s important to keep in mind that some models of caravan may sound similar but in terms of mod cons and specification they could be worlds apart which therefore will have an impact on the value. Try and hunt down your exact model being sold in your area, collect a few examples of what they are selling for and then work out a suitable price based on the condition of your own caravan.
If you bought your caravan from a dealership it might be easiest to go back to them and ask what value they would sell it for now. Though this value is likely to be slightly inflated from what you might pay through a private sale, it will be true to what you might need to pay if you had to replace your caravan now.
Even if you didn't buy from a dealership, you should be able to call them up and enquire on values, most are pretty helpful.
If you can get your hands on a Glass's Caravan Guide you'll find it easy to pick out your caravan by its specific model and year. Use the Glass's Retail Value as your guide but do also consider the condition which your caravan is in.
We recommend you take note of any purchases you make for your caravan which may change the value of your contents to make sure you are not over or underinsured. Most permanent fixtures and fittings (excluding carpets) in your caravan are covered as part of the caravan itself. We also cover items such as TVs and cooking appliances, plus non-permanent furniture such as lamps and ornaments.
The value of your caravan is likely to depreciate each year as it gets older. Most caravan insurance policies will take into account the value of the caravan when calculating your insurance premium so making sure that value isn't higher than it should be could save you money.
So you’re not paying over the odds, have a search each year to find the most up to date value and speak with your insurer to adjust it at renewal.
Adam Summersby is a respected leader with 11 years’ varied experience in niche personal and commercial lines insurance, including caravan, site operators and excess reimbursement, with proficiency in leadership, sales and account management.
Date: September 07, 2021