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Recreational Vehicle Insurance

RV Insurance Coverage In Texas

Recreational Vehicles (RV’s) are supposed to be fun and really they are but they can also represent a major financial investment in your life as well as a major financial loss if not insured properly.

There are many types of Recreational Vehicles and they vary in value across a wide spectrum. RV Insurance is critical because a standard automobile and/or homeowners policies may not cover you for liability or physical damage to your RV.

Most people don’t realize that RV’s can include Motor Homes, 5th Wheels and Pull-a-Longs (Campers). So no matter what kind of RV you own; Motor Home or Camper (for example) and it’s your home away from home for a weekend get-away or your full time home, you want insurance coverage that will take care of your specific needs.

This article will concentrate on RV’s that are part vehicle and part home. Insurance coverage differs widely by insurance company and policy type in Texas on these types of RV’s. Make sure you understand the coverage you are purchasing and it addresses the special needs you may have depending on your circumstance.

RV Insurance is not Auto Insurance and it is not Homeowners Insurance. It is a separate policy for a Motor Home or other RV. A non-motorized RV such as a 5th Wheel or Pull-a-Long (Camper or Trailer) can be added to some Auto Insurance Policies and covered per the auto insurance policy coverage type, but a Motor Home RV cannot.

Remember to review coverages with your insurance agent, as you may need to add specialized coverages for your RV either on your Auto Policy or in a separate RV Policy depending on your needs. It is highly recommended that you get a separate insurance policy for your RV.

RV insurance is very much like auto insurance but with some special differences.

The basic coverages are the same, meaning your RV insurance like auto insurance can pay for damages, injuries, and other losses specifically covered by your policy and those coverages can range from liability (state required coverage), to medical payments, personal injury protection, uninsured/underinsured motorist, collision, comprehensive, towing and labor charges, and rental reimbursement.

Like auto insurance as well the basic limits of coverage are typically not enough to cover a serious accident with an RV, so as like auto insurance again, if you don’t have adequate coverage you may be sued for large sums of money to cover such things as bodily injury and property damage above and beyond your policy coverage.

Because Motor Home RV’s can be very expensive typically banks and finance companies (lenders) require comprehensive and collision with higher limits of coverage along with lower deductibles (what you pay out-of-pocket before the insurance company pays a claim) such as $500 or less.

If you let your RV insurance coverage ‘lapse’ (you don’t pay your required Premium) you may be surprised to get a letter in the mail that allows the bank or finance company to apply what’s called ‘forced insurance coverage’ on your RV, and its very expensive and you have to pay for it as well.

Special Note: Motor Home RV’s may have the availability to be covered for ‘Replacement Cost’ coverage (where a policy deductible for a covered loss may apply) or ‘Actual Cash Value’ coverage (where a policy deductible and depreciation for a covered loss may apply).

It is highly recommended you choose Replacement Cost Coverage when and where available.

Depreciation in an Actual Cash Value Policy makes you responsible in the case of a covered Total Loss (for example) for the decrease in value of your Motor Home RV due to age, wear and tear and other factors.

So if your Lender calls your loan, you may have to pay out-of-pocket for the financial burden of the depreciation of value on your Motor Home RV above and beyond your loan.

Make sure you review and understand this important coverage with your agent.

Listed below are some of the things you should consider carefully.

RV’s have special needs and an RV Insurance Policy addresses the special differences of an RV that frankly auto policies and homeowners policies fall short of covering or can’t cover. For example such things like Awnings, Antennas or Satellite Dish, Appliances, Plumbing or Air Conditioning Units.

What about Emergency Expense while on the road?

Consider the following:

1. Higher Limits of Liability Coverage (bodily injury or property damage to others)
2. Collision Coverage that can include such things like a total loss from an auto accident
3. Comprehensive Coverage that can cover things other than collision like a total loss by fire, theft, windstorm, flood, certain named accessories loss, wild or stray animal damage (other than collision)
4. Replacement Cost Coverage for your RV (instead of Actual Cash Value coverage, when and where available)
5. Uninsured or Underinsured Motorist Coverage
6. Medical Pay or PIP (Personal Injury Protection)
7. Roadside Assistance Coverage
   Vacation Assistance Coverage

Special Note: There may be circumstances where you can actually reduce coverage on your RV. For example, when it’s in storage for the winter. You may be able to drop some kinds of expensive coverage and save a few bucks.

Just remember never drop your Comprehensive Coverage as it provides protection for such things as Theft (as named above) of your RV.

Review these important factors for your RV with your insurance agent and make decisions based on your particular circumstances and needs.

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