If your caravan is damaged beyond the point where repairing it would not be a realistic option, then you may reasonably expect your caravan insurance to provide you with a replacement. The exact details of this replacement will depend on whether or not you have new for old caravan insurance.
Not all policies may offer new for old caravan insurance replacement and some may offer only market value replacement.
Those that do offer new for old may attach different conditions depending on the policy that you opt for and of course the type of caravan that you have.
Typically you may find that new for old eligibility will depend upon a combination of:
• the age of your caravan;
• the number of owners that your caravan has had since new;
• the value that your caravan is insured for.
Some policies may require that you have been the only owner of your caravan for it to qualify for new for old replacement. Others may be more relaxed on this point provided perhaps that you bought your caravan from a reputable dealer and have all of the purchase paperwork.
You may find that, in the latter case, the allowable age limits may be lower.
The value you choose to insure your caravan for will be instrumental is determining the value of your replacement whether this is on a new for old or a market value basis. Some policies may insist on a minimum insurance value for new for old cover.
If you were tempted to under-insure your caravan to save a bit on premiums, then this would be the value used to determine your replacement, so you could end up with a caravan of a lower specification than your original vehicle.
While the value of your new caravan may depreciate over time, you may also find that price increases, changes to the caravan specification etc, could actually mean that the new for old caravan insurance valuation actually increases It is typically your responsibility to keep your insured value up to date.
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