RV insurance – Make sure you get the right coverage!
It’s something we don’t like talking about and hope we never need it – insurance for our RV. It may sound simple: Just call your home or auto coverage company and tell them what you bought and they should be able to put together a policy, right? It’s not that easy, and if you don’t get a policy designed for your type of RVing, you will pay too much and probably not have the coverage you need.
Several years ago I spent a great deal of time with Farm & City Insurance Services (FCIS) of Forest City, Iowa, developing an insurance seminar that they could present at FMCA rallies as well as RV manufacturers’ rallies. We even did a few presentations at RV shows and both people that attended were impressed! 😆 That’s because talking about insurance is boring and who wants to sit through a presentation about paying money for something that they may or may not use later down the road? I get it. However, after seeing the specialty packages available and hearing some of the stories about not getting coverage for towed vehicles and content, you will probably be glad after you read further.
A little history on RV insurance
Forest City is the home of Winnebago Industries. Back in the early years, FCIS was a small insurance agency offering coverage for the rural town. It was thrust into motorhome insurance coverage pretty fast. It became apparent the policies for homes and cars were not adequate for several reasons. Gaylord Wooge sat down with his provider at the time and developed policies for the different ways people used their rigs. Some used them on weekends for about 4 months and then put them in storage, while others used them full time. These RV specialty insurance packages are now being used by several large providers and offer superior coverage and typically at a better price.
Here are the different RV insurance types:
Total Loss Replacement
This type of coverage is the highest level of protection as it provides a full replacement in the event your unit is totaled within the first 5 years, but it is also the most expensive! An example is you purchase a 2021 Class A for $165,000 today and for the next 5 years you will receive a new model year that matches your make and model even if the price goes up and no depreciation hit. After 5 years, you are guaranteed your purchase price of $165,000. There are some restrictions, so make sure you research it further.
Agreed Value
This covers your rig for what you have in it versus book value. So if you purchase a 1978 Airstream and put $50,000 in renovations, you can cover it for the entire investment. Or you purchase a used unit and have the dealer do a full body paint job and upgrade the interior, you can present the bill of sale or get an appraisal to cover your investment.
Full-Timer Coverage
Some insurance companies will not insure a unit, contents, or occupants if it is being used full-time. And some RVers don’t tell their insurance company they’re using it full-time and find out when it’s too late. There are several specialty policies that full-timers would want to package (I hate saying bundle!) such as valuable personal property, storage facility coverage if you sold the home and put items in storage, increased personal effects, and others.
Specialty Coverage
It’s important to take a look at how you RV, what you are taking with you, and what you are towing with or pulling behind. Coverage for an RV such as Agreed Value and Total Loss Replacement only covers the rig, not the contents inside. It also does not cover the tow vehicle or car being towed behind. These would have to be separate vehicle insurance policies.
Here are some other insurance coverages to consider:
Campsite or Vacation Liability
This covers the owners if someone gets hurt in their rig or around the campsite such as hitting their head on the awning arm or tripping on a tent stake.
Personal Effects Coverage
Your RV coverage is just for the rig. Everything inside must be covered by a separate policy and can be purchased in increments of $1000.
Pet Insurance
Yes, there is Pet Insurance! I worked with Nationwide several years ago helping develop an educational seminar on pet insurance that we also conducted seminars on. Attendance was much higher for these! Many auto or RV policies do not cover pets traveling with you and do not cover medical expenses for non-accident instances. If your pet gets sick by sampling the dump station cover, gets hit on a walk, or becomes ill requiring surgery, the costs can be astronomical!
Deductibles and discounts
If you have an RV policy with one company and an auto or truck policy with another, you could be stuck with two deductibles! So it’s a good idea to bundle (OK, I said it) with one company.
There are also companies that offer diminishing deductibles for every accident-free year. Some offer a discount if you attend an accredited driving or safety course.
Also, if you are going to store your vehicle for a long period of time, you can cancel certain coverages and only pay for comprehensive coverage that is for fire, theft, hail, and other damage.
Road service, emergency expense, and towing
There are several roadside assistance programs in the market that have technical assistance, towing, and other options. I am a big fan of Coach-Net, having worked with them for more than 35 years. As with everything RV-related, most auto plans do not cover RVs well enough or have not developed a network of RV providers for service work or towing.
I have to get all that coverage?!
It seems overwhelming; however, a good insurance agency that specializes in RV coverage will get to know you and your RV, state regulations, and what coverage best fits your needs. Plus, you want an agent that is not only knowledgeable about the options available but understands RVs! And you need one that can be reached on the phone when you need them most – during an emergency. I have found most everyone will talk to you when you are looking for a quote, but I want to talk to someone when I have a claim. All these companies touting they can save you money with an internet quote may not be the ones that provide the best coverage and customer support.
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My RV has fulltimer coverage with National General, bought through FCIS when my Progressive premium with TX Domicile went way up. My car is insured with AMICA as is our rental apartment in western NY. I also carry a high limit Liability policy that covers all of the above with Amica. On top of that we have had Coach-net for over 20 years and MASA MTS for any ambulance needs including air transport from foreign lands. For medical we use Traditional Medicare and a BC/BS TX supplement.
Obviously if you’re reading this you have internet service. Once you make contact with an insurance provider, communicate with them by email. Your questions, and the answers, will be recorded so there will be no misunderstandings if you have a claim.
We have been with the lizard company for years in our home…converted to full time and stayed with them. Their rates went up 47% this renewal so we shopped. I called FCIS and what a joy to talk with someone that understood my situation and could answer “what if” questions! They saved us about 1200.00 a year on our 2 vehicles and a smidgen on our umbrella coverage. I am very pleased with the service and CSR that gets full time RV! On behalf of the lizard..I will say they handled a claim from a hail storm in ND very well working with our preferred repair center for estimates and cut a check to cover the damage.
Maybe the hail damage claim is why your premium went up 47%. Hope you don’t have a claim, but only that will tell if FCIS raises your premium.
A new thing is that fulltimers are being sold and buying a “renters policy” to go with ordinary RV insurance and assume that they’re well-covered without considering usage restrictions. My agent says that’s actually insurance fraud.
We are full timers in a fifth wheel, that is fully covered for full time and our tow vehicle is also covered in the same policy. We are going to store our fifth wheel with most of our “stuff” in it and move into our truck camper for traveling. Which one gets the full time insurance or do both of them get full timer insurance?
Call your insurance agent for advice.
As a Full Timer, with a Domicile in Texas, I find it frustrating that my tow car insurance is higher than my Class A Newmar. I have full coverage on both, and the motorhome is worth 10 times what the Toad is.