Living in Canada allows us the opportunity to travel to many beautiful scenic places. Using a recreational vehicle can be one of the best ways to experience the wonderful nature in our country. If you’re one of the many individuals who are looking forward to taking some RV trips this summer, you will want to make sure you have adequate RV insurance coverage. Continue reading below to discover all you need to know about RV insurance!
What Does the Term “Recreational Vehicles” Refer to?
The term recreational vehicle or RV is an umbrella term used for campers, motorhomes, and travel trailers. There are 2 different kinds of RVs, those that are motorized and those that are towable. Motorized RVs are self-contained vehicles you drive and can stay or live in. Towable RVs are units that are towed behind a vehicle. Towable travel trailers, fifth wheels, truck campers, and tent trailers are included in this category.
Motorized RVs are typically categorized into 3 classes, Class A, Class B, and Class C. Class A RVs are typically the largest, ranging from 24 to 45 feet long. Class B is typically the smallest, ranging from 16-21 feet and Class C is typically the middle size between Class A and B, ranging from 21-36 feet.
Is Motorhome Insurance Mandatory?
Motorhome insurance is mandatory because it is a vehicle. You can have a stand-alone insurance policy or add the motorhome to your auto insurance policy.
Can You Freeze Your RV Insurance When Not Using It?
If you are adding a motorhome to your auto insurance policy, it may cost less than a vehicle, if you keep it on the policy year-round. If you take the motorhome off the policy during the winter, it will be rated the same as a vehicle.
Do I need to Insure My Towed RV Trailer?
As mentioned above, there are motorized RVs and towable RVs. Travel trailers and towable RVs are not considered to be motorized vehicles, so they do not require their own auto insurance policy. The liability coverage from your auto insurance policy extends to the trailer while the trailer is attached to your vehicle. Depending on the value of your trailer, you may want to speak with your Ontario insurance broker about adding collision and comprehensive coverage to your auto policy.
It is important to note that liability coverage does not extend from your auto policy if your trailer is unhooked from your vehicle.
If you are looking to insure your trailer while unhooked from your vehicle, some insurance companies may require you to add the trailer to your home insurance policy as a vacation trailer.
Different Types of RV Insurance
Type A Coverage
This type of insurance is for recreational vehicles that you are driving to a destination. Type A coverage will offer you protection for emergency expenses, liability coverage, all perils, personal property protection, and depreciation waiver.
Type B Coverage
This kind of RV insurance is as add-on coverage that is for a travel trailer, truck camper, tent trailers, and fifth wheel trailers. This type of coverage adds comprehensive or collision coverage.
Other RV Insurance Coverage Options
Emergency Roadside Service:
Emergency Roadside Service Coverage can help you with flat tires, battery boosting, towing, and more roadside assistance services.
Emergency Vacation Expense:
Emergency Vacation Expense Coverage may cover you if your RV is inoperable due to a covered loss. It can help to cover the costs to help you get home, complete your vacation, or live outside your RV while it is inoperable.
Campside Liability Coverage may cover costs towards property damage that has been caused to a campsite due to your RV. This type of coverage is designed for people on short vacations.
Personal Effects Replacement Coverage:
Comprehensive coverage helps to protect your RV from the result of mechanical and cosmetics issues, as well as items that are built in your RV. Personal Effects Replacement Coverage helps to provide coverage for items that are not built into your RV, such as a TV, or clothes. If you need to repair or replace items from inside your RV that have been damaged or lost in a claim that has been deemed covered, this type of coverage may help to cover those costs.
What Kind of RV Insurance Coverage Do I Need?
Several factors need to be considered when determining what kind of RV insurance will be right for you! It will be important to speak with your Ontario insurance broker about these factors when deciding on your RV insurance options.
1. Amount of TravellingAs you travel with your RV on the road, you are exposing it to more risks than there would be when it is parked or in storage. This means the more travel you plan to partake in, the more protection you may need.
Not only how often you plan to use your RV but the type of usage can also be a factor that goes into determining the insurance coverage you will need. Whether you plan to take your RV to a campground all summer, travel the province and visit multiple campgrounds, or only use the RV occasionally, you will need coverage, but the amount may differ.
If you are planning to take your RV to Quebec, or anywhere else outside of Ontario, make sure to inform your Ontario insurance broker so they can ensure you are covered for any out-of-province differences.
4. RV ContentsIf you live in your RV, you may be more likely to have some valuable items with you. It is recommended to avoid carrying valuable items within the RV but if you do have electronics, televisions, cameras, bikes, or other expensive furniture you will want to have insurance that also covers these important items.
Does RV Insurance Cover Roof Leaks?
One of the most common questions we receive at Youngs Insurance Brokers, from RV owners is whether their RV insurance will cover a roof leak. Each RV policy will be unique to the owner and the amount of coverage will vary, so it is important to speak with your Ontario insurance broker to make sure you fully understand what is and is not covered under your policy.
In most cases, if the leak in the roof is a result of wear and tear, a manufacturing defect, or a lack of proper maintenance, it may not be covered by the insurance company.
Comprehensive insurance coverage is intended to offer coverage for damage to your RV that is the result of what is called a covered peril. A covered peril is an event out of your control or not the result of another driver that the insurance company may cover if you need to file a claim. The most common kinds of covered perils that may be covered by your insurance company are events like fires, objects falling, hitting an object, theft, vandalism, lightning strikes, and windstorms or hail. If you have comprehensive insurance included in your policy and the roof leak is a result of damage from a covered peril, it may be covered by the insurance company. It is important to speak with your Ontario insurance broker to make sure you have as much comprehensive insurance coverage as your RV is worth.
If you took out a loan to purchase your RV, the lender of the loan may require you to have comprehensive coverage until the loan is paid off in full. If the trailer and or motorhome are financed, you will also need Physical Damage Coverage.
If your RV roof sustains damage from an accident or collision, if you have collision insurance included in your policy, the insurance company may cover it as well.
What Happens When an RV is Totaled?
Another common question we receive from people looking into RV insurance is what happens if an RV is totalled?
There are typically 3 main types of insurance total loss coverage options offered for RVs.
Actual Cash Value
Actual cash value coverage is the most affordable option available, but as a result, is somewhat limited. If you have actual cash value coverage in your insurance policy and your RV is totalled, the insurance company calculates what your RV is worth on the open market, minus your deductible to determine what the client gets in terms of payment.
If you have Agreed Value coverage and your RV is totalled, when you file a claim, the insurance company may pay the amount for the RV that was “Agreed” on when the policy was written. It is important to speak with your Ontario insurance broker, as not all RVs are eligible for this coverage. Some insurance companies may require the RV to be less than 5 years old to qualify for Agreed Value coverage. If your RV does qualify for this type of coverage, you will be required to show the bill of sale to be approved for the amount you paid.
Full Loss Replacement
Full Loss Replacement coverage is often only available for RVs that are less than five years old. If your RV is totalled and you have Full Loss Replacement coverage, the insurance company may pay out the cost to buy a new RV that is of a similar make and model to the one that was totalled. In order to get the full MSRP value, you would have to speak to your Ontario insurance broker and have them add the OPCF 43 - Limited Waiver of Depreciation. If you have a signed OPCF 19A then it will be paid on agreed value and an OPCF 19 is a limiting the amount paid for loss or damage coverages which is the amount stated on the endorsement or actual cash value, whichever is less.
If there is no signed 19, 19A, or 43 on the policy, then the claim will be determined by book value which will include depreciation and not purchase price.
How Much Does RV Insurance Cost?
The cost of your RV insurance will depend on the kind of RV you have, how much your RV is worth, how you use your RV, and the additional coverages you may choose to add to your RV insurance policy. The Class A RVs are often the costliest to insure, due to their high value. Your driving record may also impact the cost of your RV insurance.
If you are thinking of purchasing an RV or already own an RV, reach out to your local Ontario insurance broker and they will be able to advise you on the best coverage options for your RV, as well as advise on the cost of the insurance.
Get an RV Insurance Quote in Ontario
Youngs Insurance Brokers has been in business for over 100 years. We use our experience and relationships with insurance companies to help our clients get the best insurance options available, customized to their specific needs. We can help you to be protected this summer on all of your RV adventures. Contact your local Ontario insurance broker for expert advice on all your RV insurance needs.