Caravan Cover VS Caravan Insurance

What is the difference between cover and insurance

What's the difference between caravan cover and caravan insurance?

For the most part, caravan cover offers the same protection as caravan insurance; however, claims are handled on a discretionary basis, meaning your claim is discussed and viewed on an individual basis and payment or non-payment of a claim is not strictly tied to the terms and conditions of the cover.

As a product, our Caravan Cover protects you against financial loss should your caravan and/or its contents be lost, stolen or damaged in a similar way to how Caravan Insurance does. Because the Caravan and Motorhome Club is a club owned by the members that allow us to operate what is called a Discretionary Mutual scheme.

A discretionary mutual is essentially risk protection for a member organisation, where members pay contributions for cover into a ‘pot’ out of which claims can then be paid. This is similar to insurance; however, rather than an insurance company providing cover to the general public, a discretionary mutual product can only be available to members of a Mutual organisation such as the Club.

If the Cover is discretionary, how am I protected?

To ensure our members have peace of mind when buying our Caravan Cover, we’ve taken out a Group insurance policy in the Caravan and Motorhome Club’s name to provide additional protection for members. The Group policy is the second layer of protection that members are able to claim under in the unlikely event the Club does not pay a claim or does not pay in full, as long as it’s covered under the terms and conditions of the Group insurance policy, which mirrors the Caravan Cover. (A copy of the Group insurance policy is available on request.)

Are there any restrictions in the Group insurance policy?

The Group insurance policy taken out by the Club reflects the Caravan Cover provided to members - we feel it’s important that the cover is mirrored to ensure members have the right protection. However, to provide that protection there are some scenarios the insurer of the Group policy is not happy to include - these are generally risks that are very unlikely to occur but the insurer considers could be huge if they were to materialise. Where these apply they are duplicated in the caravan cover document, so members are aware of them.

How much should I cover my caravan, equipment and contents for?

The sum you choose to cover for your caravan, equipment and contents is entirely up to you. However we suggest you select an amount that reflects the potential value of your caravan and all the items in it, should the caravan and/or items be lost, stolen, damaged or destroyed completely, in a worst-case scenario, during the cover period.

If you have taken out Super Cover this product offers new for old (replacement value) cover for your vehicle, equipment and contents up to 15 years of age. It is therefore important that the cover you select represents the replacement value of items in order to ensure you have sufficient cover to replace anything lost or damaged beyond repair with the new equivalent.

If you have our Standard Cover, this product can provide new for old (replacement value) cover for your vehicle, equipment and contents up to five years of age provided the sums covered are sufficient.

The maximum that will be paid is the sum/s covered limit/s chosen by you. So, if your chosen cover limits are not sufficient at the time of taking out or renewing cover, you may not receive a settlement that fully represents the replacement value of your caravan and/or contents. If you have chosen sufficient cover at new business or renewal and costs rise during the cover period then this inflation will automatically be covered.

Please be aware that at times of high inflation (e.g. due to demand outstripping supply), even second-hand vehicles can increase in price.

What security devices do I need to fit to my caravan?

At least one security device needs to be fitted when the caravan is not in use and unhitched from the towing vehicle. This information is clearly stated in the Cover documentation and if you do not secure the caravan, we may decline to pay a theft claim. Full details of acceptable security devices can be found in the Cover Wording document and in the online quote journey.

When will my caravan be covered?

Your caravan is covered when it’s in storage, on your drive, on the road or on site. You'll be covered against accidental damage or loss from theft, vandalism, storm, and flood. Please read the relevant cover booklet on our Cover Documents page for full details.