Beware when you compare: Why you should choose a specialist leisure insurance provider over a comparison site
Beware when you compare!
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Your holiday caravan or lodge is likely to be one of your largest financial investments and one of your most-cherished possessions. Protecting it against loss and damage is a no brainer; knowing which provider to choose is much harder!
To keep it as simple as possible consider these two simple, but important questions:
1. What do you need to cover?
2. What don’t you need to cover?
Considering both of these questions stresses the importance of knowing what you are not paying for, as well as knowing what you are paying for.
It’s up to you to decide if not paying for something is a good decision. Just remember this… it’ll ALWAYS be simpler and cheaper to buy decent insurance cover upfront than to pay for the shortfall in the event of a claim.
Spot the difference
Insurance providers like Compass are considered “specialists” because of our focus on the leisure industry. This means that we dedicate all of our time and expertise to providing the best possible cover for you and your holiday lodge or caravan.
And because holiday caravans and lodges aren’t like other forms of holiday accommodation, choosing a specialist is a wise move. Not all insurance providers will appreciate the relevance of the following points, for example:
- They are built with specialist materials, and can differ widely in design, size and value
- While you own your caravan/lodge, you “rent” the pitch it is sited on from your park
- A holiday park is a “communal” environment, onto which other people come and go.
At Compass, we’re committed to offering policies that deliver genuine value for money. When you compare our prices with other specialist holiday caravan insurers, you’ll find we remain competitively priced.
The DISTINCTIVE risks
When it comes to deciding what you do and don’t need cover for … make a list and check it twice.
Things to consider will include:
Caravans and lodges aren’t built like houses.
So, while they’re still vulnerable to the usual insurance perils, including fire and theft, they’re also susceptible to more distinctive risks, including water escape, frost damage, vermin damage, storm damage, flood damage and malicious damage by a hirer.
If your park isn’t in a flood area and/or you don’t hire out your unit, then you might not want to cover those particular risks.
The rest can happen to anyone at any time.
Do ALL of Your Sums
- The biggest sum of all – Your Structure Sums Insured amount is the total amount that your holiday caravan/lodge (and associated structures, e.g. steps and decking) is covered for.
- The small stuff – Your contents Sums Insured amount is the total amount that the contents you keep at your holiday caravan/lodge are covered for. Everyday items like bedding, clothing, shoes, toys, furniture, and decorative accessories quickly add up.
- The bigger stuff – Don’t forget to buy cover for any higher-value items that you keep at your happy place. These might include bicycles, cash, jewellery, freezer items, gaming, and computer equipment.*
*Some contents may be covered under your household insurance policy, particularly on an “All Risks” basis/away from the premises – it’s worth checking!
The EVEN bigger stuff
Don’t assume that your biggest ‘items’, such as steps, balconies, sheds, hot tubs, floatation devices etc. will be automatically covered. Check the small print for confirmation.
Think outside the box
Remember the other things that sit on your pitch. These may include patio furniture, trees, shrubs, garden ornaments and lighting. Sheds and storage boxes and the contents within them should also be covered.
Excesses
One of the biggest reasons some policies are cheaper than others is that they carry higher excesses. Make sure you’re happy with yours.
Exclusions, terms and conditions
Insurance policies always contain exclusions, terms and conditions. These vary according to the provider and the product itself. For example, Compass include vermin damage, other insurance providers may exclude this. Others offer insufficient legal liability cover to meet the requirements of some parks’ contractual requirements. Always read the small print!
Accidents happen
Accidental damage cover can be a smart addition to your policy—especially if you have pets, young children, a tendency toward clumsiness, or rent out your unit.
Re-siting/salvage
In the worst-case scenario, your caravan/lodge could be damaged beyond repair. If this happens, it will need to be disconnected, removed from your pitch, and disposed of. A replacement unit will then need to be delivered, sited and connected. These specialist processes can cost thousands. If it’s not covered, you’ll have to pay.
Age matters
Some insurance providers won’t insure a caravan or lodge above a certain age, or will only offer New for Old cover on units up to a certain age. In some cases, your cover could literally change from New for Old to Market Value overnight. This is not a small detail, especially if you own an expensive unit, so make sure you check individual insurance providers’ age restrictions – they vary widely.
Occupied versus unoccupied cover
Review your policy carefully for occupancy and unoccupancy clauses. Some policies we’ve come across exclude cover if the policyholder isn’t physically staying in their holiday caravan. After all,
holiday homes are meant to be vacant much of the time. Make sure your insurance continues to protect your property even when you’re not there.
Liability
Public Liability cover (PL) is in place to protect both you and the park you’re sited on. Many licence agreements (the contract between you and your park) require holiday caravan/lodge owners to have a minimum of £5 million PL cover in place, but many cheaper insurance policies only offer £1 million or £2 million. Check your contract and be sensible. Anything under £5 million is nowadays considered low and may not be enough.
Support you can count on – When you need it
If something goes wrong with your holiday caravan or lodge, knowing what to do next shouldn’t be a worry. With Compass, our friendly claims experts are here to guide you every step of the way—from the moment you report the incident to the final resolution. As a specialist holiday caravan insurer, Compass works closely with trusted industry professionals to source parts and replacements quickly and economically – minimising disruption and helping you get back to enjoying your home-from-home.
Use your imagination
If you’ve been through this list and checked it twice, you can rest assured that it will have been a worthwhile exercise. Another worthwhile exercise is taking a moment to consider how a loss, big or small, would affect you and your ability to enjoy your holiday caravan or lodge.
The answer to this will very much depend on your individual circumstances but should tell you all you need to know about how valuable it is to you. If you’ve owned your holiday caravan for 20+ years and you’re planning on trading up in the next few years, then a basic, market-value cover could be exactly what you need.
However, if you’ve just bought a new model, are paying off a finance agreement, or have the luxury of being able to spend a lot of time in your holiday caravan or lodge, it’s more than likely that a comprehensive new for old policy is what you’ll need.
We can all save money on our insurance if we try. But usually, the savings are relatively small. They also might end up being the most expensive money you never spent if you have to make a claim.
