Indemnity Cover
Cover which protects you against future loss. The settlement is usually based entirely on the actual value of the claim at the time of the loss.
This is really the alternative to New For Old cover. Indemnity cover in the case of a caravan would pay you the market value of the caravan if it is stolen or written off. If your caravan is damaged and repairable or has an item stolen from it then the insurer will pay the cost of reinstatement or repair of the 'van provided that you have covered it and any other specified items for their full market value.
For static caravans, if your agreement with the site owner requires that you replace a caravan which cannot be economically repaired with a new one, then indemnity cover is not suitable for you and the best advice is to buy caravan insurance on a "new for old" basis.
If you are unsure of the current second hand value of your caravan the best thing to do is to check at local dealers. The caravan club have a valuation service which costs £5.95 for members only, but remember that the price quoted in a price "guide" is just exactly that, a guide and is no guarantee that you will be offered this amount if your caravan is stolen or written off. The actual price in industry sources at the time of the loss or damage is what is usually taken to be the current market value at that time. Remember for static caravans you need to allow for site clearance and delivery of the replacement caravan.
The NIG Caravan policy arranged by ourselves allows you to authorise repairs up to £250 yourself and then for you to reclaim this less your excess (£100 for touring caravans £50 for static caravans) in due course. You are able to have your caravan repaired at the nearest competent repairer which very often is the dealer who sold you the caravan. For very large claims NIG will normally instruct one of their engineers or a company to inspect the damage before repair is authorised.