As a static caravan owner, getting the ‘sum insured’ figure at the right level, when arranging your insurance, is instrumental in avoiding underinsurance.
A recent article from RebuildCostAssessment.com revealed that on average, traditional bricks and mortar buildings are covered for just 63%* of what they should be!
It’s a similar situation with static caravans.
With rates of inflation remaining high, the costs of building materials and labour up and the increasing costs to purchase a static caravan, it’s more important than ever to make sure you get the value of your unit and contents right, so your sum insured represents the replacement cost of your unit and its contents.
What is meant by sum insured?
Sum insured is essentially the maximum amount that an insurance company will pay to the policyholder when they make a claim against a covered loss. For static caravan insurance you will generally be asked for two sums insured: the structure and the contents.
As the property owner, it’s your responsibility to make sure that the sum insured is set at the correct level to ensure that you get the right payout to cover the cost to repair or replace your static caravan in the event of a loss.
If you take out a policy with a lower value than needed, it can ultimately affect how much you can claim for. You may only get a percentage of the money you need to replace or repair your static caravan and contents.
The cover levels
There are two levels of cover available for static caravans; new for old and market value.
For those who insure their unit as ‘new for old’, the sum insured needs to accurately reflect the cost to replace the unit, should the existing one be damaged beyond economic repair. As an example, if you make a claim and your sum insured is set at the full, new replacement cost, you will be able to claim the cost of a brand-new equivalent static caravan on the same site, providing your unit was less than 20 years old at the time you took out a policy with Lifesure.
However, if the sum insured is not set at an adequate level to cover the cost of a replacement, you would only be able to claim for the market value. The term ‘market value’, refers to the amount you’d reasonably pay for your static caravan on the open market, if you were to go out and buy it again today. This means your unit would be replaced with a caravan of a similar age, type, and condition if it was damaged beyond repair.
You can choose to take out your policy on a ‘market value’ basis. As explained above, your sum insured should reflect the cost to replace your static caravan with one of a similar age, type, and condition.
Be aware that if your static caravan is 20 years old or more you can only take out a ‘market value’ policy with Lifesure.
If your sum insured is not set at the correct level, you may find yourself underinsured. This could mean your insurer will only pay up to the sum insured you declared at the time of insurance, even if your unit was worth more.
Get it right
It is essential to check your documents at renewal as the value of your static caravan is likely to have changed in the last 12 months. Checking the current value of contents in your static caravan at renewal, is also advisable. This shouldn’t be limited to the appliances and furniture within, but also things like decking or outdoor storage units and sheds, which may have increased in value, since you took out your policy. If you think you are underinsured, you can contact your insurer and ask them to perform a mid-term policy adjustment, but please be aware you may be charged an administration fee for doing so.
While it can be difficult to accurately estimate the value of your property, there are things you can do to give you a better idea of its worth. Searching for your static caravan make and model on the internet, or contacting the manufacturer, may give you a clearer idea of its current value. Your caravan park may also be able to help you identify the value of your make and model.
When it comes to contents, static caravans and lodges are different to bricks and mortar houses as most come with factory fitted items. Your contents sum insured should be based on what you’ve ‘added’ to your holiday home.
Your main home contents insurance could cover some of the possessions in your static caravan; it depends on the level of cover you have. You could have cover for camping equipment and other items you usually carry with you if you’ve specified these items on your main home policy or have taken out personal possessions cover.
It’s uncommon for your home contents insurance to cover you for general items kept in your static caravan, such as cutlery, bedding, or a TV. If you’re unsure of what you’re covered for, check your policy wording.
Make sure you know exactly what you want cover for and consider debris removal and re-siting costs, too.
We're here to help
We’ve been arranging static caravan insurance for more than 20 years, so you know you’re in safe hands with Lifesure.
Many of our customers tell us our static caravan insurance offers everything they need, with competitive prices and our excellent customer service being just what they were looking for. In fact, that’s why we received the Feefo Platinum Trusted Service Award for the third year running!
Our award-winning team of advisors are always happy to help and can be contacted on 01480 402 460 to provide a new quotation or assist with any changes to an existing policy. And we also offer MyLifesure, an online customer portal providing instant access to your policy details and documents. From here you can send us secure messages and update your details. It’s a convenient tool to get you to the information you need quickly.
Support with claims
If you should need to make a claim on your policy, AXA have a dedicated Claims Teams (Woodgate & Clarke) who are there to assist you throughout the claims process. We know that making a claim can be a stressful time, so if you need further support our Customer Care Champion is there to help, for additional peace of mind.
Extra benefits!
And when you become a Lifesure static caravan insurance customer, you’ll be able to benefit from our 'Refer a Friend' scheme if you refer us to your friends, neighbours and family! Find out more and how you can earn a £40 reward here.
