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Taking out caravan insurance is an important part of your responsibilities as a caravan owner, since it can protect you from heavy expenses when the unforeseen happens. There are two main types of this kind of insurance:

Touring caravan coverage. This type of policy covers caravans that are towed behind cars on the road on their way to a campsite. Touring insurance covers the trailer while it is on the road as well as providing more general coverage against hazards such as collision and theft.

Static caravan coverage. This policy covers caravans that are parked on a trailer park on a semi-permanent basis. This type of insurance protects you against risks such as flooding, fire and theft.

These are the types of covers you are provided under caravan insurance:

Loss or damage. This cover reimburses you for the costs of repair or replacement of the trailer itself and the various parts as well as the contents, including personal effects of the residents.

Loss of use. This refers to losses that you suffer as a result of the loss or damage of your trailer, such as having to rent substitute shelter or transportation.

Third party liability. This type of cover protects you from claims made by the other party in an accident and is generally restricted to incidents that occur when the trailer is not being towed.

Personal injury. This cover is not offered by all caravan insurance policies but can protect you against expensive medical bills in case you or a member of your family are hurt while using your trailer.

When buying caravan insurance it is also important to consider the way providers assess the value of claims. There are three methods insurers use for computing basis of cover :

Market value. Insurers will estimate the value of your claim based on the value of the trailer and other covered items at the time of the accident, less the value of wear and tear.

New for old. Under these types of policies, insurers will replace your unit with a new one of comparable value.

Guaranteed value. This is the amount that insurers will offer to replace your caravan in case of theft or a write-off.

It should be noted, however, that irrespective of which basis of cover you are provided, many insurers put a cap on the amount they will pay in case of the total loss of your caravan. You should consider this amount when selecting your policy as it may not be enough to cover the cost of a replacement caravan.

You can get more affordable policies if you take advantage of the discounts offered by insurers. For example, if you install anti-theft devices on your trailer, you can avail of discounts on your premiums as the risk your trailer will be stolen is decreased. You can also take advantage of more affordable rates on your caravan insurance policy by joining a recognized caravan owners organization as it signals providers that you are a responsible owner who will take good care of their trailer.