Caravan Cover VS Caravan Insurance

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.

What's Caravan Cover from the Caravan and Motorhome Club?

Caravan Cover is a discretionary mutual product. The Club - which is made up entirely of members - has full discretion over whether to agree to pay claims and the amounts to be paid. We may also agree to pay claims outside the terms and conditions of the cover if we feel the circumstances justify it. It is not a contract of insurance.

Do I need your Caravan Cover?

If you’re like us and see your caravan as your home-away-from-home, then we feel that it’s the right thing to do. Your caravan may be one of the biggest financial investments you make, so why wouldn’t you protect it? Although it’s not a legal requirement, it does cover you for things like accidental damage, theft, flooding, vandalism etc.

Who can buy our Caravan Cover?

Because our Caravan Cover is provided directly by the Club, it’s only available to members of the Caravan and Motorhome Club. We pay claims from the contributions made by members for the cover and all the surplus made on the cover is reinvested back into our sites and services we provide for you. So by taking out Caravan Cover you are directly supporting your Club! By becoming a member for just £54 a year, you’ll not only receive great discounts and savings on your holidays, you’ll also be eligible for our members only cover!

Are all elements of the cover provided by the Club?

The Cover is designed by the Club with feedback from members. In order to ensure the Club finances are protected, for example in the event of a large event affecting a lot of members, we take out some insurance protection, in much the same way as an insurer takes out reinsurance cover. 

The Club is then responsible for the whole product including the terms and conditions, pricing, claims handling and customer service. However, we may choose to outsource some elements of this management. For instance, the claims handling is currently outsourced to Devitt Insurance Services Limited, an organisation the Club has had a working relationship with for over 40 years. The Club provides Devitt with guidance and support on how claims should be managed and when to escalate claims to the Club. The Club also oversees all complaints that may arise relating to the Caravan Cover.

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.