The Caravanwise static caravan insurance policy can be taken out on a new for old basis until the caravan is 20 years old. The rate is exactly the same as for market value cover but you need to ensure that you set your sums insured at a level that equal the current list price of your caravan and the other items in and around it that you are insuring. You must also include, in your sums insured, the cost of delivery and re-siting. Some caravan parks insist that you have new for old cover so that you will be in a position to replace your ‘van if it becomes damaged beyond repair, with a brand new one.
What is new for old cover?
New for old cover is where you decide that you want to cover the caravan for the full replacement cost of your caravan at today’s new price. New for Old and this value is then stated on your insurance schedule. Provided you make sure that the value you state is sufficient then in the event that the static caravan is damaged beyond economic repair the insurer will provide a replacement that will be on a like-for-like basis with a new caravan of the same make and model or if not available one of equivalent specification features and functions. Full details of claims settlement are set out in the policy book.
Protect the full value of your investment
New for Old insurance is intended to ensure that, if your caravan has to be replaced, rather than repaired, under the policy claims settlement then it will be replaced by a new equivalent model. The best way to find out the new price of your model is to ask the manufacturer for their price list. If they don’t deal direct with the public ask them who is the nearest dealer and ask them for the price including delivery to your site and any other charges that they make. If your model is no longer available ask them to advise what is the nearest equivalent model to yours, again remembering delivery and other charges. This total on-site cost is what you base your sums insured on. You will also need to add in other items that you might want to include in your caravan insurance such as optional fixtures and fittings, steps, decking, external store and similar items. All of these are covered New for Old if your caravan is also covered new for old. The maximum amount that you will be paid in the event of a claim is the sum insured shown on your schedule of insurance
Market Value Static Caravan InsuranceStatic caravans lose value over time and the market value of your caravan will reduce as the years go by. The market value is the second hand price that you would have to pay a dealer for the nearest replacement caravan to yours, delivered and resited on your pitch. If you choose market value cover you will need to establish its current value from a dealer or your site owner. The maximum amount that you will be paid in the event of a claim is the sum insured shown on your schedule of insurance. You don’t want to know what the site owner would charge for a sited caravan. What you are looking for is the value of the caravan ex dealer plus delivery and then the cost of resiting.
If you have a total loss claim then the insurer would base the settlement on the value of your caravan and other items you have insured at the time of the loss or damage however the maximum they will pay is the sum insured shown on your schedule of insurance. How they go about deciding how they will settle a claim is set out in your policy booklet, under claims settlement. If your site owner, in their pitch lease terms, insist that any caravan that is the subject of a total loss must be replaced by a new one you may face a potential short fall. So check your lease to make sure you get the right level of cover. If your site charge a fee to check your insurance policy you might expect that they would check this sort of thing but that might not always be the case.
Will you remind me to review my sums insured regularly?
Yes, new rules from the Financial Conduct Authority say that we must remind you to carefully check that the cover provided by the insurance offered at renewal is suitable for your needs. This includes ensuring that the sums insured are sufficient and we strongly recommend that you check your caravan’s value each year at renewal. The maximum amount that you will be paid in the event of a claim is the sum insured shown on your schedule of insurance.
I hope that this article has helped you to understand the differences between market value cover and New for Old static caravan insurance. It is worth noting that with Caravanwise you can select New for Old right up to the caravan being 20 years old. Protecting your caravan for much of its useful life. Why not get a quote today.
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