Tourer owners warned to insure at replacement value and not the resale value

Caravan insurance specialist Cover4Caravans.co.uk 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 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 2015 and this year (i.e. 2017) 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 £15,000 4 years ago, is it still worth £15,000 - or would it cost £19,000 to replace it?”

Richard cites the following example:

• if you bought a Bailey Unicorn Madrid in 2015, its current resale value would be around £17,995.
• to replace your Bailey Unicorn Madrid as new today however, prices start at around £22,399.

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 adds: “Unlike some other caravan insurance policies which may have very restrictive conditions on getting a new replacement, Cover4Caravans’ insurance policies will typically provide new for old replacement if you have a caravan up to five years old and no matter how many previous owners the caravan has had.”

Ends