RV Insurance Situation

Bet you didn't know that the Recreational Vehicle (RV) was a 50 billion dollar industry and has increased more than 200% in the past eight years! Forty million people take advantage of this endeavor each year.

Most people realize that one's auto policy covers trailers or motor home being used recreationally for injuries and/or property damage to others in an automobile accident or while parked. But did you know that the auto policy covering a trailer only covers it while it is actually hooked up to the insured automobile towing it? On the other hand, a motor home is covered by the auto insurer while being towed or parked.

Seems uncomplicated, except in both cases, neither is covered by the auto policy for your liability exposure when the vehicles are parked for injuries or property damage that occurs on the site on which the unit sits. So, now what?

Not to fear. Your homeowner's liability coverage extends to one's personal liability arising from those sites if the site is rented on a daily or weekly basis, such as campgrounds or trailer parks. The homeowner policy also extends coverage to "vacant" sites one owns or rents for extended periods, but this is where coverage gets murky. Homeowner policies defines the term "vacant" as free of structures, meaning no sheds, docks, decks, fences, and outhouses, including trailers or motor homes semi-permanently set on the site to serve as a residence.

How many of us know of a motor home or trailer that has been parked in a campground and is used much like a weekend getaway cabin? More than often, the site is leased on an annual basis and, although it may only be used during clement weather, it is left there year-round for storage purposes, if nothing else. If such is the case, neither your auto or homeowner liability coverage is applicable. So what's to do to cover this liability exposure?

For very minimal premium or about $20 yearly, this exposure can be covered by an "endorsement" to your homeowner policy and, for a few dollars, more coverage may be extended to your umbrella policy as well.

Bottom line and a word to the wise: does your insurance agent know or even ask exactly how you are using the RV?

*** Opinions expressed in this blog are those of the author and are not necessarily held by the author's employer. The contents of this online blog do not purpose to provide legal, accounting, or other professional advice or opinion.