Buying an RV means investing in a very expensive piece of machinery. Therefore, when damage occurs, it’s likely to be quite an expensive repair bill that you might face. As a result, you’ll likely wonder whether your RV insurance will cover the costs of your repairs. The answer is, yes, but...
Under RV insurance policies, physical damage insurance is an option. However, you must make sure that your policy includes adequate coverage, and you must remember that there are times when your policy won’t pay for physical damage. Keep an eye out for some of the limitations that apply to many policies, as outlined below.
1. Make Sure Your Policy Covers Physical Damage
Most states require motor vehicle operators (yes, RV owners included) to carry insurance. However, basic RV policies usually only include liability insurance which pays for third-party party damage or injuries resulting from accidents that are your fault. This does not cover your own vehicle damage.
To get additional coverage, you’ll need to ask your insurer to add physical damage insurance to your policy. The most essential benefits are:
- Collision Insurance: The coverage will pay to repair your vehicle following wrecks.
- Comprehensive Damage Insurance: A non-accident hazard, such as fire damage, weather damage, vandalism or vehicle theft will have coverage under this portion of your policy.
An additional benefit for RV owners is personal possessions insurance, which insures your belongings that you bring onto the vehicle, too.
Please note that even if you have this coverage, you will not be able to receive coverage if the policy excludes the type of hazard that caused the damage.
2. Damage Below Your Deductible Value Has No Coverage
Most physical damage claims are subject to deductibles. The deductible is the cost of a claim that you must pay yourself before your insurer pays the remaining cost. So, if you have a $1,000 deductible for collisions, and a wreck causes $3,000 in damage, your insurer will only pay $2,000 towards your settlement. You are responsible for paying the remaining $1,000.
If damage falls below your deductible cost, then you will have no coverage from your RV insurance. However, some policies offer diminishing deductibles, and others might waive the deductible for certain damage.
3. Intentional Damage Is Not Covered
Physical damage insurance for RVs only applies to unintentional or unpreventable damage to the vehicle. Therefore, if a policyholder intentionally damages their vehicle, they will not receive coverage from their policy. Not only that, but policies will not cover damage from normal wear & tear. This is a repair that you will likely need to make on your own.
To get a better idea of when your RV policy will pay for physical damage, always ask your insurance agent to review your coverage terms with you. They can help you make the necessary adjustments to optimize your coverage.