Flexible static caravan insurance

Although it’s not compulsory by law, the insurance needs of a holiday home are very different to a bricks and mortar property, so taking out specialist static caravan insurance ensures that you’re covered for the specific requirements of this type of property. You may find that the conditions in your park agreement require proof of insurance to protect the park against the cost of removing the debris of a destroyed unit or to ensure some protection for holidaymakers against damage caused by you.

Unlike touring caravans and motorhomes which are used for short trips, a holiday home is occupied all year round, so finding the right insurance policy is crucial. Just like home insurance, static caravan provides peace of mind and financial security in the event of theft, loss or damage to your property and its contents.

When looking for cheap caravan insurance online, it’s all too easy to be lured in by a low price tag, but if it sounds too good to be true then it probably is. To ensure that you have the right policy for all your static caravan requirements and feel satisfied your holiday (park) home is in safe hands, ask yourself the following questions:

• Is the insurance cover on a market value or new for old basis?
• What is the policy excess for the structure and the contents?
• Are you covered for debris removal and the re-siting costs?
• Is your Sum Insured sufficient to include any sales commission required by your park owner? (This can add more than 30% to the manufacturer’s price).
• Is your single article limit and contents cover sufficient?
• Is your sum Insured enough for extras such as decking, balcony steps & storage units?
• What is the occupancy period, when you need to ensure the water systems are fully drained and turned off at the mains or the heating is left on a minimum or frost setting (just as you would for your main home)?
• Does the policy include extras such as key cover, loss of use and personal accident cover?
• Is your public liability cover sufficient to meet the needs of the park?
• Does your site or park has a history of flooding, and what action has been taken to reduce the likelihood of damage to your holiday home? We are happy to offer full flood cover in most cases where a floatation device has been installed.

Whether or not you can insure something depends on a number of items, including: Legality, Exclusions and something called ‘Insurable Interest.’

Legality:

There is a basic rule that forbids the insurance of something illegal. For example, burglars cannot insure themselves against loss of income caused resulting from them being sent to jail.

Exclusions:

All insurances contain exclusions and/or restricting conditions. Some of these exclusions exist because insurers feel the premium they are charging is not designed to cater for that risk or because no premium could be large enough for the risk.

Insurable Interest:

When you buy insurance you are buying a promise that the consequence of any loss you suffer will be reimbursed in accordance with policy conditions. This is why it is vital that your policy is in the name of the owner(s) of the property to be insured. If you have a loan against your unit this will usually be reviewed as part of the claims process. However, if you are in any doubt, simply contact your broker and ask for the interest of your bank or building society to be noted. The same can be done if you own a unit with a friend.

We believe in offering high quality cover, to make sure that your static caravan is properly protected should the worst happen. Whereas most static caravan insurers only offer market value cover for older units, we don’t believe in penalising you with a limited choice of options. We therefore offer two types of cover:

New For Old:

Also known as reinstatement, this gives you cover for a like-for-like replacement caravan (or the closest available match); up to the value of the sum insured you have bought; in the event of a total loss e.g. an unrecoverable theft or irreparable accident. This is the best option if your holiday home is new or nearly new – just remember to keep the replacement value up to date with the current sum insured on your policy.

Market Value:

Also known as indemnity, your static caravan insurance will cover the cost of an equivalent caravan, taking account of its age and condition. This is a good option for older holiday homes, as used values are currently holding up.

Having an adequate sum insured is extremely important. So how should you go about ensuring your sum insured is big enough? The following provides a guide:

New For Old:

It’s essential that you insure for the cost of a brand new static caravan unit of equivalent size and quality. The same applies to its furnishings and equipment, the only exception being clothing and domestic linen where an allowance for wear and tear should be made. This should include:

• The new cost of an equivalent unit as supplied to you by your park owner or the manufacturer plus an allowance for any increase in the price during the period of insurance.
• An allowance for site clearance, debris removal, delivery and re-siting necessary in the event of a total loss.
• The new cost of outbuildings, extensions and other structural improvements.
• The new cost of additional equipment and fittings (e.g. TV, furnishings, cooking equipment, clothing and personal belongings).
• Household linen, clothing and personal belongings used or associated with the holiday caravan (Do not include valuables and items used other than in connection with the caravan as these should be added to your home contents insurance).

Market Value:

The unit and its contents should be insured for their current market value taking into account age, wear and tear. This should include:

• The market value of your unit.
• An allowance for site clearance, debris removal, delivery and re-siting necessary in the event of a total loss.
• The market value of outbuildings, extensions and other structural improvements.
• The market value of additional equipment and fittings (e.g. TV, furnishings, cooking equipment, clothing and personal belongings). Do not include valuables and items used other than in connection with the caravan as these should be added to your home contents insurance. Check your policy to ensure that no individual item is worth more than the maximum insurers will pay for a single item unless advised to us.

If your unit is destroyed, there are a number of additional costs that need to be considered in addition to the cost of replacing your structure and contents, such as debris removal, delivery charge and siting costs. You should seek advice from your park owner on any other additional costs that may be involved, and confirm how much you should allow.

Debris Removal:

Before a replacement unit can be sited, the remains of your destroyed unit have to be removed and there are strict environmental rules governing the way in which this happens. These rules have been introduced by Government legislation and are enforced by Local Authorities who impose fines where the regulations are breached. The cost of removing a unit in accordance with the regulations is high. We would normally expect the cost of debris removal to vary between £2,000 and £5,000, depending on the area.

Delivery Charge:

A delivery charge will be made to cover the costs of transporting your replacement unit to your park.

Siting Costs:

When your replacement unit arrives, further charges will be made to site it on your pitch and connect it to park utilities such as electricity and sewerage etc.

We are happy to offer full flood cover in most cases where a floatation device has been installed. When choosing a pitch or location for your park home or static caravan, you should check if the park or site has a history of flooding and see what action has been taken to reduce the likelihood of damage to your park home or static caravan.

A floatation device is a device designed to keep your park home or static caravan afloat and unharmed, above flood waters. The park home or static caravan being securely attached to the floatation device, which should be able to float freely above the ground in the event of flood, in accordance with manufacturer’s instructions. For further information on caravan floatation devices you may be interested to visit the Marche Industries website.

The conditions in your park agreement may require proof of insurance to protect the park against the cost of removing the debris of a destroyed unit or to ensure some protection for holidaymakers against damage caused by you. However, the decision as to where to buy your insurance is entirely yours.

Buying caravan insurance can be a costly, time consuming and confusing process, and with so many products available it’s often difficult to know which one to choose. Your choice of provider will depend on many factors including price, breadth of cover, service provided or strength of the insurer.

At Shield, our highest priority is satisfying our customers and our best recommendations come from word of mouth – satisfied customers who have told their friends about us. Why not check out our recent Feefo reviews to see what our customers are saying about us!

All insurance companies have to supply sufficient information to allow you to make an informed choice about their offering, via a ‘Key Facts Summary’ alongside a personalised written quote. Even after you take the plunge, you are entitled to a 14 day ‘Cooling Off Period’ when you can change your mind. The ‘Cooling Off Period’ starts when you receive your documents or when the insurance starts, whichever is later.

The final decision as to where to buy your insurance is entirely yours. If you are under pressure to buy insurance from someone other than your preferred choice, our suggestion is that you ask the insurers’ regulator, the Financial Conduct Authority (“FCA”), to help you.

Let insurers know should any of that information change:

Your insurers promise to cover you for certain losses you suffer and this promise is made on the basis of information you provide. A change in your information may not affect the amount you pay or the conditions that apply, but the result could be an increase or even a reduction in your premium. Whilst this might be annoying, the dangers of not keeping your insurers up-to-date are significant. On the plus side, it’s possible your claim could be unaffected because the change in information has nothing to do with the circumstances of your loss. On the other hand your claim could be reduced or even rejected completely and there is little point in paying premiums unless your policy responds following an otherwise insured loss.

Underlying all insurances is the expectation that you will act reasonably:

The existence of a policy does not mean you can ignore all dangers or behave in a negligent manner in the belief that insurers will act as your safety net irrespective of the increased exposures such behaviour would create. If a customer acts negligently, insurers may increase premiums at renewal or even decline to offer terms. In extreme cases, insurers will decline a claim for a loss directly caused through a lack of due care.

If you are unfortunate to suffer any loss, damage, incident or occurrence that is likely to give rise to a claim, it’s important that you report this as soon as possible to our dedicated UK based, claims helpline on 01277 243 006. In the event of theft or other malicious incident you must give immediate notice of loss to the Police, who usually will provide a report or reference number.

For our friendly claims advisors to process your claim as quickly as possible, please have your policy reference number to hand (this can be found within your Evidence of Insurance).

When buying a static caravan insurance policy, customers need sufficient information to make an informed decision and should expect proper evidence of their insurance to be provided. Comparing full policy documents is a lengthy and difficult process. As a result, anyone selling insurance to the public is required to provide a ‘Key Facts Summary’ to simplify comparisons. This document enables you to see what benefits are offered but also what significant conditions or exclusions apply.

Whatever you buy from a retailer you expect to receive your product quickly and to receive evidence of what you’ve ordered. In the case of insurance, your product comes in the form of a promise set out in a policy wording and personalised documentation. The paperwork should clearly identify the parties in the promise. The parties are the Insurer(s) making the promise and you, to whom the promise is made. Other information should appear such as a description of the property being insured, the sections of cover included, the relevant sums insured, the excess, the period covered and any special additional conditions.

Check your documents to satisfy yourself you have been given what you expect, in the same way as you would check any product you buy. In particular, if the paperwork contains any inaccuracies or if you are unhappy, contact us for clarification or to correct a problem. If this is not possible, you have the right to cancel within 14 days and receive a full refund.

The whole point of insurance is that you can claim when disaster strikes. When considering claims, insurers will be taking into account a number of elements that will include policy conditions, sums insured and information provided by you. That’s why it’s important to check your policy documentation and, if you have any concerns about the accuracy of information you provided it is essential to address this before any loss takes place. Insurers value their customers and recognise that an insurance product is measured by the way in which claims are settled. It’s in everyone’s interests to ensure the claim process is as painless as possible and that the customers’ expectations are fulfilled. There are four core elements in a claims process: 1) Report the loss 2) Return the completed claims form, 3) Communicate and 4) Settlement

Report the loss as soon as possible. This gives your insurer an opportunity to take appropriate action to prevent further damage. Significant delays will leave insurers wondering why you have kept them in the dark and can affect any settlement.

Return the completed claims form. Although your insurer takes details when you report a loss, they will also provide you with a form that enables the details to be formalised and checked for completeness and accuracy.

Communicate. If you work closely with insurers to deal with any residual queries, they will be able to make a settlement offer sooner. Insurers should provide you with updates on your claim but if you feel that something is unclear discuss your concerns with them.

Settlement. When your insurers have completed their review they will authorise payment for repairs or replacement or offer you a settlement with an explanation as to how the amount offered has been reached.