Motor Home Insurance
Since motor homes and travel trailers are treated similarly by insurance companies, we are going to combine them in this section. Primarily, there are two different ways to protect your motor home. Many of the auto insurance companies will allow you to add the motor home to your personal auto policy. This way generally has the lowest premium, but it might not be the cheapest.
Scenario #1 You have a motor home; you are on vacation for the entire summer; and you are towing a small vehicle behind the home. You have a kitchen fire and you sustain a total loss to your motor home, small car and all of your clothes and personal items. Your motor home was added to your auto policy. You will have a deductible for your motor home and a deductible for your small car through your personal auto policy. Your clothes, cameras, and things will be reported under your homeowner’s policy. Your homeowner’s policy has a 2% deductible on a $200,000 home. In other words you have another $4000 deductible. The other way is to buy a separate motor home policy. Many motor home insurance companies will allow you buy additional coverage on your personal items. As a result, you could avoid or cover the homeowner’s deductible by purchasing $4000 worth of additional coverage on your possessions. In this claim scenario, having a separate motor home policy would have been overall cheaper.
Either way you choose, you need to keep an eye on your note payoff. With expensive motor homes, many people finance the motor home over a long term. After a few years, your loan payoff is more than the value of the motor home. If there is a total loss of the motor home, your note might not get paid off without gap insurance.
If you permanently reside in your motor home or travel trailer, you need to inform your agent. Insurance companies treat this situation differently. An insurance company can deny a claim if you do not disclose all information on the application. Don’t risk it. Contact your agent if your motor home’s occupancy status changes.