A holiday caravan is a mobile home and is not considered to be a permanent dwelling. It is designed to be moved frequently, whether the caravan is a static caravan or mobile.
A static caravan by definition, according to the Caravan Act of 1983, is any caravan which does not have its own motive power and cannot therefore move under its own power. Both static and mobile caravans are at risk from fire damage as well as theft and vandalism.
Holiday caravan insurance should therefore be comprehensive in nature and should cover you for loss or damage to your caravan caused by fire, theft, vandalism or storm damage. It should also cover you for contents belonging to your holiday caravan such as furniture, equipment and other accessories. In addition it should provide personal liability in respect of injury or property damage caused by yourself or members of your family while using the caravan.
You need to ensure that your policy provides adequate cover in the event of loss or damage occurring to your holiday caravan. If you are underinsured then you may lose out on compensation if you need to make a claim either for loss or damage. To avoid this situation, you need to calculate the correct value of your holiday caravan sum insured when taking out insurance cover.
If you have a holiday caravan, you will need to calculate its sum insured in order to have the appropriate cover in place.
Your insurance company will require you to provide them with your holiday caravan’s sum insured, which is the amount that your insurer would pay out in full if your caravan was completely destroyed by an insured event.
In order to determine this figure, you will need to take into account the cost of replacing your holiday caravan as well as any permanent fixtures and fittings that are included with it.
Your caravan’s Sum Insured should reflect the cost of replacing your caravan with another one that is of a similar kind and quality (this means new for old).
For example: If someone stole your 10 year old caravan, you wouldn’t necessarily want us to pay out enough money to buy exactly the same type of 10 year old caravan again. Instead, we would give you the money to replace it with a brand new model of the same kind and quality.
Click here for more information on calculating holiday caravan insurance.