If you’re a new first-time owner of a motorhome or RV, you should familiarize yourself with some important terms and coverage options before going ahead and purchasing an insurance policy. Getting the right motorhome coverage is essential to protecting the investment you’ve made. Incomplete or incorrect protection will leave you exposed to risks that could potentially cost you tens of thousands of dollars.
Some Important Terms to Know
Specific to motorhome insurance, there are three terms you should know that you may not be familiar with: ACV, GRC and RC.
Here’s what each term means:
- ACV stands for “actual cash value.” This is the least expensive, but also least inclusive, type of motorhome insurance. It provides reimbursement for the current market value of the vehicle, including depreciation.
- GRC stands for “guaranteed replacement cost.” It guarantees a brand-new replacement motorhome or RV if yours is damaged or destroyed.
- RC is an acronym for “replacement cost.” Specific to motorhomes and RVs, your insurance company will ask you to specify a fixed upper limit for the replacement of your vehicle. That limit represents the maximum value of the replacement or reimbursement you will be eligible to receive.
What Will Your Motorhome or RV Policy Cover?
Your insurance broker will recommend a comprehensive policy specifically designed for motorhomes and RVs, as this provides the most extensive protection. Comprehensive policies cover the vehicle itself as well as contents. While the specifics vary from provider to provider, you can expect a comprehensive motorhome or RV policy to provide:
- Protection of the vehicle, its contents (up to a specified value limit) and equipment including solar panels, appliances and generators, among others
- Emergency expenses for unexpected costs resulting from motorhome damage or loss, such as hotel accommodations, food, and vehicle rentals
- Protection for people who have sold their homes and live in their motorhome or RV full time; this coverage works much the same as regular homeowners’ insurance
Note that while you may have the option to cover your motorhome or RV under an existing auto or home insurance policy, you may not be able to add the aforementioned protections. They are usually specific to comprehensive policies particular to motorhomes and RVs.
The Best Claim Is the One You Never Need to File
To help keep your premiums low, be aware of best practices for motorhome and RV safety, and verse yourself in proven strategies for avoiding accidents and the need to file claims.
Here are some basics to keep in mind:
- Memorize the height of your vehicle (in both imperial and metric measurements) and pay careful attention to road signs indicating the heights of upcoming bridges
- Always do a complete check of the vehicle and its contents to make sure everything is secure before you hit the road
- Practice a fire safety plan so you don’t panic in the event of an emergency
- Remember that your motorhome/RV is far heavier than a regular passenger vehicle and requires much more braking time
- Always stay within posted speed limits
- Practice turning in a safe place like an empty parking lot until you are confident in your ability to judge the vehicle’s turning radius
- Try to park the vehicle in such a way that you don’t have to reverse in or reverse out of your parking spot
For more detailed information, please refer to our previously published article on how to avoid motorhome and RV insurance claims.
Are You Headed Far Away?
Travel insurance is an essential addition if you’re headed to the United States. You should never leave the country without securing adequate travel insurance, as you may otherwise find yourself on the hook for enormous medical bills.
Remember, too, that if you are heading to Mexico, you will need to purchase additional travel insurance through a licensed Mexican provider. If you’re headed to Mexico, talk to your insurance company well in advance.
Motorhome Insurance Calgary: Call Lane’s for Great Coverage at Affordable Rates
Lane’s Insurance is Alberta’s leading expert when it comes to motorhome and RV insurance. Lane’s is partnered with the province’s top insurance carriers, and its brokers work for you, not the insurance companies. You can rest assured that Lane’s always works to protect your best interests.
Get started by reading this free ebook on recreational insurance for Albertans, published exclusively by Lane’s Insurance.