Disappointed Insurance information

SallyD replied on 10/02/2021 18:32

Posted on 10/02/2021 18:32

Very disappointed when talking to the Club regarding renewing my caravan insurance to find that they had incorrect information regarding replacing our van under the New for Old cover. When I checked the amount with them that would be needed to replace our existing Sterling Continental 580 the representative tried to tell me that the cost of this van had reduced since last year. When I queried what replacement van she was basing this figure on she advised me that a NEW Sterling Continental was cheaper than last year. When I tried to advise her that this was not possible as Sterling brand were no longer made she continued to insist that it was listed in her guide and was that the sum I wanted to insure for? Even after referring to her manager she was still questioning me as to why I needed a higher amount of cover despite me telling her that I would need to purchase a Swift Elegance model to have an equivalent caravan. After much discussion she quoted me for the figure I felt was required but I found this whole episode worrying. What would have happened if I had accepted her advice then needed to make a claim ? Would they have paid out to replace my van with an equivalent one or would they have said I had under - insured an refused my claim?  Needless to say I've been busy checking other providers.

Wherenext replied on 10/02/2021 20:01

Posted on 10/02/2021 20:01

Hi Sally,

Your policy specifically defines the cost of replacement value as...

"The Cost of replacing your caravan, equipment and contents with new items of similar type" and on page 10 of the 2020 policy documents I notice that the club state in clause number 3 ..."if the caravan is lost, stolen or damaged.... we may pay to replace the caravan..... with new items of the same or similar manufacture and model or pay the cash equivalent at our option"

The bold type is mine for emphasis. It is clear that you should have the cost down as the nearest equivalent. I am unable to confirm if the 2 caravans you mention are indeed compatible as replacements but if they are then you are correct is demanding the Sum Insured reflects the possibility of having replace your Sterling with a different model.

Just as a matter of interest the insurer of my caravan has the following wording:

We cover the following
we will replace your caravan with a new caravan of the same make and model.

If a caravan of the same make and model is not available, we will either:
l replace your caravan with a new caravan of the same make and nearest equivalent model, specification and value; or pay you the last manufacturer’s list price for your caravan.

Slightly different to yours but I know where I stand about the value for insurance.

Wherenext replied on 10/02/2021 20:07

Posted on 10/02/2021 20:07

Just as a further point, I needed to go back and check the wording so couldn't include it in the other reply, the CAMC document has this as Exclusion 5:

Replacement of the caravan or equipment where the parts are found to be unobtainable (for example because they are no longer manufactured). In this case we will pay the last known price of the parts plus the appropriate fitting charge.

This may well be the equivalent of my own policy but does seem to contradict the whole point of replacement of similar types. If this is in fact the case then the least they should be insuring you for is last years higher Sum Insured.

In any case you'll never get into trouble with them for over-insuring but may get into an argument in the event of a total loss.

KjellNN replied on 11/02/2021 10:06

Posted on 10/02/2021 20:01 by Wherenext

Hi Sally,

Your policy specifically defines the cost of replacement value as...

"The Cost of replacing your caravan, equipment and contents with new items of similar type" and on page 10 of the 2020 policy documents I notice that the club state in clause number 3 ..."if the caravan is lost, stolen or damaged.... we may pay to replace the caravan..... with new items of the same or similar manufacture and model or pay the cash equivalent at our option"

The bold type is mine for emphasis. It is clear that you should have the cost down as the nearest equivalent. I am unable to confirm if the 2 caravans you mention are indeed compatible as replacements but if they are then you are correct is demanding the Sum Insured reflects the possibility of having replace your Sterling with a different model.

Just as a matter of interest the insurer of my caravan has the following wording:

We cover the following
we will replace your caravan with a new caravan of the same make and model.

If a caravan of the same make and model is not available, we will either:
l replace your caravan with a new caravan of the same make and nearest equivalent model, specification and value; or pay you the last manufacturer’s list price for your caravan.

Slightly different to yours but I know where I stand about the value for insurance.

Posted on 11/02/2021 10:06

Since Swift manufactured both the Sterling model and the  Swift model, other than the colour of the cupboards,  upholstery etc, they are indeed equivalent models.

Wherenext replied on 11/02/2021 15:10

Posted on 11/02/2021 10:06 by KjellNN

Since Swift manufactured both the Sterling model and the  Swift model, other than the colour of the cupboards,  upholstery etc, they are indeed equivalent models.

Posted on 11/02/2021 15:10

Thanks Kj. In that case the OP has a strong argument.

Caravan Han replied on 15/02/2021 11:54

Posted on 15/02/2021 11:54

Hi SallyD,

Thank you for raising this. Our team has investigated what happened here. Our agents use Glass’s guide, which is a guide commonly used in the industry to assess caravan values - both new and second hand. Unfortunately, the guide still lists the Sterling Continental 580 as being manufactured. This has been raised with Glass’s in order that they can correct their information. 


We’re sorry that the service you received was below our usual high standards. The agent concerned has received feedback and will continue to receive additional training and support. 


Please be assured that in the event of a claim for theft or if your caravan was damaged beyond economic repair, we would have covered you for the full replacement value or equivalent under your Super Cover.

SallyD replied on 17/02/2021 19:00

Posted on 17/02/2021 19:00

Thank you for your response. I'm glad that the issue has been identified and that you have taken steps to resolve the error. However, for this year we have chosen to take our insurance with another company who have given us the same cover (bar one very small difference) and were over 20% cheaper which unfortunately meant that we could not justify staying with the Club out of loyalty. We will check the Club's pricing next year.