New for old insurance and finance

[Buckman]

Ian
Here is the policy schedule from my CAMC cover. Pretty clear on what I have👍

Caravan and Associated Equipment £28,500
Contents£1000
Hotel and Caravan Hire £3375
Miscellaneous Expenses£3500
Liability£5,000,000
Personal Liability Personal Accident£50,000

However it does not state the price of the caravan itself. Associated equipment can be numerous things including motor mover, awning etc. Associated equipment may increase by far less than a caravan which seems to go up a couple thousand at a time, but an associated item may only increase by £100.

 

[Dustydog]

However it does not state the price of the caravan itself. Associated equipment can be numerous things including motor mover, awning etc. Associated equipment may increase by far less than a caravan which seems to go up a couple thousand at a time, but an associated item may only increase by £100.

True. But at each renewal they ask me what I want. From memory I asked for £25k caravan and £3500 for the equipment mainly the mover awning bbq battery. No problem

 

[Buckman]

If the caravan and/or equipment is lost, stolen or damaged beyond economic repair within 5 years of the date that they were first sold as new for Standard Cover, or 15 years for Super Cover, we may pay to replace the caravan and/or equipment with new items of the same or similar manufacture and model or pay the cash equivalent at our option. Settlement will take into account any available discount.

Goes on to state;
Any increase in replacement costs during the period of cover will be automatically covered. If the limit of cover is not sufficient at the commencement date of the period of cover in which the loss or damage happens, the most we may pay will be the limit of cover for your caravan and equipment in the period of cover.

With regards to the cash settlement at their option I wonder if they are referring to the value of the stolen caravan or the value of what would have been a replacement caravan?
Due to huge delays with ordering a new caravan and with manufacturers having the book full for 2022 and only option being 2023 models, it may be best to consider taking the cash.
However an insurance company may be able to push in front of other orders as it may be cheaper for them to replace the caravan rather than pay out cash?

 

[Hutch]

You will nearly always loose out to the insurance company, when I asked at a previous renewal, the Company told me that they would only pay out what I had quoted for the value of the new caravan, ie, £28 k but if new vans were £30 k I would lose out.
So clear as Mud. Double check with the CCC.

 

[Buckman]

You will nearly always loose out to the insurance company, when I asked at a previous renewal, the Company told me that they would only pay out what I had quoted for the value of the new caravan, ie, £28 k but if new vans were £30 k I would lose out.
So clear as Mud. Double check with the CCC.

CAMC does Caravan Cover so not sure where you stand regarding that their statement; "Any increase in replacement costs during the period of cover will be automatically covered. "

 

[otherclive]

CAMC does Caravan Cover and not insurance so not sure where you stand regarding that their statement; "Any increase in replacement costs during the period of cover will be automatically covered. "

The debate about CMHC Caravan Cover has been aired numerous times and to all intents and purposes it is no different to “ insurance” The club T&C clearly state what is include and excluded and policy holders still have rights if appeal up to the Ombudsman if necessary.

 

[Buckman]

The debate about CMHC Caravan Cover has been aired numerous times and to all intents and purposes it is no different to “ insurance” The club T&C clearly state what is include and excluded and policy holders still have rights if appeal up to the Ombudsman if necessary.

I was referring to the part in italics and not debating the cover or insurance. Of course I should not have mentioned it and will delete it to stop further arguments.

 

[Raywood]

No mention of any of the above in the CAMC documentation so one assumes that even if the price has risen the CAMC wil cover the loss?

The policy always limits the maximum sum payable to the sum insured I am afraid. The settlement can only be the cash value of the caravan or replacement with a similar model up to this figure, however it is described in the policy, assuming the sum insured will cover it. The policy will normally refer to replacement, repair or the cost of the repair to cover all accidents rather than just a total loss. You should also be aware that if the parts are not available and the cost if they were available would be less than the value of the caravan, then you get the theoretical cost of repairs.

 

[Dustydog]

The policy always limits the maximum sum payable to the sum insured I am afraid. The settlement can only be the cash value of the caravan or replacement with a similar model up to this figure, however it is described in the policy, assuming the sum insured will cover it. The policy will normally refer to replacement, repair or the cost of the repair to cover all accidents rather than just a total loss. You should also be aware that if the parts are not available and the cost if they were available would be less than the value of the caravan, then you get the theoretical cost of repairs.

You’re thinking of diminution in
market value. A hard call for the average man in the street, but you are absolutely correct Ray.

 

[ProfJohnL]

I don't know if Buckman has printed a direct copy of the T&C's for teh cover he's debating but there is one critical weasle word in the first paragraph highlighted in red below.

If the caravan and/or equipment is lost, stolen or damaged beyond economic repair within 5 years of the date that they were first sold as new for Standard Cover, or 15 years for Super Cover, we may pay to replace the caravan and/or equipment with new items of the same or similar manufacture and model or pay the cash equivalent at our option. Settlement will take into account any available discount.
....

That statement does not guarantee a full pay out.

 

[Hutch]

Yet again, the forum members, are point scoring, we can only know from our insurance companies.

 

[Parksy]

From my own direct experience of a total loss claim against a new for old insurance policy that I described earlier, the insurance policy doesn't insure a make or model of caravan.
The policy covers the sum of money that was spent to purchase the caravan and accessories, no more, no less.
If you want the policy to keep pace with price rises, the only way would be to increase the premium if the insurers allowed you to.

 

[Buckman]

I don't know if Buckman has printed a direct copy of the T&C's for teh cover he's debating but there is one critical weasel word in the first paragraph highlighted in red below.
That statement does not guarantee a full pay out.

That is correct and the use of the word "may" has been pointed out on numerous forums including CAMC Together forum. Their standard answer was that the consumer can escalate it to their insurance company and if not happy then to the FOS once you have a deadlock letter from the insurer who backs the CAMC caravan cover. I theink the term "may" would be used in the T&Cs of any insurance policy.

 

[otherclive]

That is correct and it has been pointed out on numerous forums including CAMC Together forum. Their standard answer was that the consumer can escalate it to their insurance company and if not happy then to the FOS once you have a deadlock letter from the insurer who backs the CAMC caravan cover.

It would be of interest to know what the T&Cs are for New for Old from other caravan insurance companies. I don’t think that the use of the word “ may” is inappropriate given the nature of the business.

 

[Raywood]

I don't know if Buckman has printed a direct copy of the T&C's for teh cover he's debating but there is one critical weasle word in the first paragraph highlighted in red below.



That statement does not guarantee a full pay out.

That does give a full pay out. You either get the equivalent model and equipment or the cash equivalent of that replacement method. The word may is there to give them the choice between the two methods and not to suggest they will not pay those methods of settlement.
Whatever you think of the clubs policy, it is not one to weasel out of any justified claims and never has been. If you want the best policy for claims handling service it is certainly one of the best if not the best. The downside is the price I am afraid, but at that level they can deal fairly with customers.

 

[otherclive]

That does give a full pay out. You either get the equivalent model and equipment or the cash equivalent of that replacement method. The word may is there to give them the choice between the two methods and not to suggest they will not pay those methods of settlement.
Whatever you think of the clubs policy, it is not one to weasel out of any justified claims and never has been. If you want the best policy for claims handling service it is certainly one of the best if not the best. The downside is the price I am afraid, but at that level they can deal fairly with customers.

I agree with you and only ever used one of the clubs for the caravan insurance as both have very good reputations for resolving claims quickly and fairly, and that is what I would want should “ bad” things happen.