Is Your RV Equity Secure?

Like automobiles, RVs have the nasty habit of losing value over time. It's not as secure an investment as buying a home--but it's a little hard to see the country when your home's tied down to a concrete foundation.

Nevertheless, it's important to protect your investment--and your future--by taking what precautions you can. For example, if you're planning on buying a new RV, beware, like a new car, the depreciation is a big thing the first time those fresh, shiny, tires roll of the dealer's lot.

Let's play suppose: Suppose you buy a brand new RV, and finance it with your friendly neighborhood bank, credit union, or loan shark. You've had it a little while, had some good times, and *hey presto!*, a freak windstorm picks up your little getaway machine and smashes her flat. You're insured, right? Ah! Do you have "full replacement" insurance though? In some instances, you might well be "paid" the current market value of the rig, which could easily be LESS than the remaining balance on your loan.

Where does that leave you? Without an RV, but with more money to pay on that loan, even after you've signed over that insurance settlement check. Talk about indigestion! What to do? You may have heard this: It's good to insure your RV with a company that specializes in RV insurance. Talk turkey with your agent, walk through the "smashed flat" scenario to make sure your loss will really be covered.

Fulltime RVers have special needs. "Regular old car insurance" may help some, but if you lose most of what you own in an RV loss, you may find you'll get not a penny for your personal possessions. And if someone visiting were to stumble on your steps and break his whatchamacallit, the specter of a liability lawsuit may cause you to lose a little sleep. Take the time to check out your policy and sleep better.