When taking out a loan to purchase a caravan, the lender will require that you also take out insurance on the caravan. This is not only a condition of Jade Caravan loans but a generally-accepted requirement across both consumer and business lending markets.
With most loans, in particular the Secured Caravan Loan, the lender is accepting the caravan as security against the money they are loaning to you. They want to know that that security is protected through comprehensive insurance. From the borrower’s perspective, you are responsible for that loan, despite what may happen to the caravan. If you sell the caravan while under finance you are still responsible for the loan payments. The same happens if something untoward happens to your caravan. In the case of fire, damage, theft or another incident or accident, you are still obligated to make the repayments. Even if the caravan is deemed unusable. By having insurance, you can expect that you will receive compensation through your insurance policy to pay out any monies owed on a loan.
So caravan insurance is not only a requirement of a loan, but astute caravan ownership practice. At Jade we are keen to educate and inform our customers, so we’ve compiled some tips and hints on caravan insurance for your general information.
Insurance Coverage
Insurance is a method of managing risk. In the case of a caravan that risk may be posed either during travelling on the road, while you’re located at a caravan park or camping site or while the caravan is in storage or parked while not in use.
The major incidents or occurrences that caravan owners will be looking to insure against may include:-
- Accidental damage caused while travelling or while stationary.
- Damage from storms, floods, rain events and hail.
- Fire damage caused either from inside via a cooking or other electrical issue or from an external fire. That may mean a bushfire or other type of fire event.
- Explosions caused possibly by gas bottles or faulty connections.
- Malicious damage caused by known or unknown persons whom you cannot claim against their insurance.
- Theft either of the entire caravan or of items removed from the exterior or belongings from inside the caravan.
- Burnout of electrical motors and machines.
When reviewing the policy options on the market, ensure you read the fine print and fully understand what you are and are not covered for.
Selecting Your Policy Inclusions
As with all types of insurance policies, caravan insurance policies will usually come with a range of options. You may have the choice of deciding what you do and don’t want to have included. Often the ‘extras’ attracted an additional premium so it can be wise to consider every item in detail.
Considerations may include:-
- Coverage for complete replacement with a new vehicle or cash coverage for an agreed value.
- If you are on the road and your caravan is deemed unusable, you may select to have your policy cover a level of alternative accommodation. If you are some days or weeks from home, this may be quite worthwhile.
- The fees and other costs that may be involved if you need to have your caravan towed and stored after an accident.
- Expenses that you incur as a result of the incident which caused damage to your caravan.
- Liability if your caravan causes damage to another person or another person’s belongings or property.
Many of Australia’s leading insurers will offer insurance coverage for caravans and RVs and it can be worth doing your research to assess the best options. From the information we’ve provided above, it may be worthwhile listing what you would like included in your policy before you speak with the insurance companies.
Sourcing an Insurance Policy
Just like arranging finance, sourcing an insurance policy involves consideration of the options and providers available. Numerous insurers will offer policies for caravans so you will have plenty to select from.
If you are unsure about embarking on this process yourself, engaging an insurance broker to source you the policy that suits you is an option. An insurance broker operates in a similar way as Jade’s business model. Jade handles all your loan requirements by surveying our contacts across the loan sector and an insurance broker does the same in the insurance market.
While Jade Caravan Finance does not provide insurance broking services ourselves, we do have contacts with insurance brokers that we are happy to share with you. Our consultants are highly trained and experience in finance and very knowledgeable in aspects of insurance also. Please feel free to give us a call with any questions.
When taking out a Secured Caravan Loan with Jade you will be required to take out an insurance policy and the lender will request the details of your policy. You will be asked for updates each year so the lender knows the policy has been renewed. By not renewing the policy you may be in default of your loan conditions.
For information on caravan finance and insurance contact Jade Caravan Finance at 1300 000 003
DISCLAIMER: THE INFORMATION AND THE DETAILS THAT HAVE BEEN INCLUDED IN THE ARTICLE ARE PROVIDED AS GENERAL INFORMATION ONLY. THERE IS NO INTENTION THAT THIS BE THE ONLY SOURCE OF FINANCIAL INFORMATION FOR THE READER. IT IS INTENDED AS GENERAL IN NATURE. IF A READER CONSIDER THEY REQUIRE FINANCIAL ADVICE AROUND THEIR OWN PERSONAL FINANCES, THEY ARE DIRECTED TO CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY ERRORS OR MISREPRESENTATIONS OF DATA, FIGURES, FEATURES AND INFORMATION AS SOURCED FROM OTHER SOURCES SUCH AS MANUFACTURERS OR GOVERNMENT DEPARTMENTS AND AUTHORITIES.
