Navigating the Road of RV Insurance: Protecting Your Customers’ Home on Wheels

Large-scale weather events around the country are a stark reminder of the power of nature, as well as protecting what matters most. The Brookings Institute recently reported that climate-related insurance claims are on the rise with “wind and hail, water damage and freezing, and fire and lightning” being the “leading causes of property damage.”

Despite being able to drive or pull an RV away from immediate harm, the RV insurance market is not immune to weather-related impacts and macroeconomic trends. When you are offering a customer a home on wheels, RV owners need to understand key coverages that indemnify them for physical damages to the vehicle, like an auto policy or liability exposure similar to a home policy.

Once you’ve helped your customer settle on the perfect RV, understanding coverages and buying RV insurance can be complicated and costly. Licensed, local independent insurance agents help consumers compare coverage across multiple carriers countrywide. It’s important to partner with an insurance agent that will help RV owners make the best protection decision. The best independent insurance agents can demystify insurance coverages or highlight risks that might require special endorsements, which could increase or decrease insurance premiums.

But what exactly are we buying when we pay an insurance premium? Indemnification.

Insurance carriers are paid to deliver upon a legal agreement with their policyholders to provide indemnification. Said another way, the promise of any type of insurance is a commitment to financial protection and compensation for covered losses or harm. Yet insurance remains a mystery to most of us who are shelling out more and more each year in premiums.

“Because insurance protects people’s most important assets, it’s crucial that policyholders understand their coverage. But unfortunately, our survey shows there is a considerable insurance knowledge gap among consumers,” said Charles Symington, president and CEO of the Independent Insurance Agents & Brokers of America (Big “I”).

According to a study released last year by Trusted Choice and the Big “I,” “while 86% of respondents said they had a strong understanding of what their policies covered, when their knowledge was put to the test many were incorrect or unsure about coverage specifics.”

Coverage specifics for RV owners are even more nuanced, when you consider limitations on personal storage solutions and exposure to the weather.

“I think one thing that we have to be cognizant of is climate change and weather in general,” said Christopher Bartram, Safeco’s national specialty vehicle product director “Given the size of RVs, they are typically not garaged in the same way an auto would be. Therefore, the exposure to weather risk is also more pronounced than a regular car.”

Protecting an RV from the elements is easier said than done, especially as market growth and demand for RVs and storage solutions rebounds. According to Business Research Insights, “density in cities has affected the availability of individual facilities for storage, and as such owners are compelled to look for professional services to secure their property against vices such as theft, damage or even deterioration due to unfavorable weather conditions.” Where someone garages an RV can be a factor in what they pay to insurance carriers.

No matter where an RV is stored, finding the right RV insurance coverage in this market could be a challenge.

Here are four RV insurance tips:

1. If your customer is not a full-timer, they should make sure the RV policy allows for peer-to-peer rentals. The “median annual usage for current RV owners remains steady at 20 days,” so RVs sit unused for an average of 340+ days each year, which has given rise to the RV peer-to-peer sharing economy. With the advent of Outdoorsy, RVshare and RVezy, this is becoming more prevalent, and not all insurance carriers allow RV owners to rent out their RV. Meaning, although most RV rental companies offer insurance coverage during the rental period, some insurance policies may prohibit this type of RV use. If your customer wants to rent out their RV, they should be covered before, during and after the rental period.
2. Save time and find an independent insurance agent who can shop RV insurance for the owner. Typically, binding insurance coverage online or directly with a single insurance carrier means that the agent on the other side of the phone or computer screen is a captive agent — representing just one insurance company. Independent insurance agents or brokers represent multiple RV insurance carriers and, once they collect all relevant information, can compare RV insurance policy features and benefits for your customer’s specific RV and insurance history. This helps consumers find the right coverage at the right price. And hopefully helps make insurance a little easier to understand in the process.
3. If a customer is like “most Americans who do not fully understand insurance coverage,” ask an insurance agent to explain features, benefits or RV-specific endorsements offered by the policies available to him or her. For example, some carriers offer endorsements for vacation liability, for damages to the RV sustained in Mexico, for personal effects or, in case of a total loss, choosing an agreed-upon value or replacement cost option upfront. Safeco’s Bartram says of their ability to offer different settlement options: “Selecting the right settlement option can guarantee you could get the next best model if something were to happen to your RV.” This also allows the carrier to price the insurance product accordingly.
4. Know what you’re paying for. When I began my insurance career, someone once told me, “Insurance is one of the most expensive things people pay for that they know very little about.” Insurance is a financial protection product, not a maintenance policy. If an RV is in need of repairs due to regular use or wear and tear, chances are the insurance policy will not cover those repair costs. However, if another vehicle, or an animal, hits an RV while your customer is visiting Yellowstone Park, for example, submitting a claim to the insurance company will start the process of verifying the loss and ensuring the customer is paid what they are owed.

Successfully navigating the sometimes winding road of RV insurance is more than just paying a monthly insurance premium. A home on wheels is a lifestyle choice and an investment in freedom and adventure. Making sure that investment is protected from unexpected risks, whether on the road or in storage, is an important responsibility.

By partnering with knowledgeable independent insurance agents and understanding specific coverages, RV owners can safeguard their investments and focus on enjoying their journeys. With a “record 11.2 million RV owning households” and “an incredible 9.6 million households intend[ing] to buy an RV within the next five years,” that’s a lot of investments and journeys that need protection. Make sure your customers partner with the right agent to help find the right RV coverage.