Explore Dictionary – RV Direct Insurance

 

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RV Insurance Glossary

A

Actual Cash Value

The current market value of the risk (your RV) at the time of the loss (when it was damaged). Depreciation is factored into any claim payout.


B

Bundles

Bundles or bundled insurance is when you group multiple insurance policies with a single insurance company. This often gets you a discount. For example, you can bundle your RV, home, and auto insurance in the RV Group Program for a discount!


C

Claim

A claim is a sudden and accidental occurrence of damage and destruction that is covered in the terms of your policy. When you make a claim with your insurer, you’re asking them to cover the cost of damages based on your contractual agreement (your insurance policy).

Conviction

A conviction is a criminal offense that can see a driver being given a Penalty Notice of being summoned to the Magistrates Courts. Drivers can receive a driving conviction for a number of offences, such as: not wearing a seatbelt, speeding, texting while driving, or impaired driving. Receiving a conviction can drastically increase your insurance rates.


D

Deductible

The amount that you would pay in the event of a claim in order to have your risk (your RV) repaired or replaced or is deducted from a cast settlement. For example, if you have a $500 deductible and the covered repairs to your trailer cost $6500, you would pay $500 and the insurer would pay $6000. If you had a cash settlement and it would receive $15,000 for your motorhome, you’d only receive $14,500.

Depreciation

A reduction in the value of the risk (an RV) with the passage of time, generally due to wear and tear.

Detached Structures

A building or fixture that is not permanently attached to the risk (your RV). This can include a building, garage, shed, deck, fence, shelter, or other similar types of structures.


E

Effective Date

The date which something is to take effect, such as a policy start date, change date, or renewal date.

Emergency Vacation Expense

Provides coverage for reasonable and necessary emergency expenses if your trailer is lost or damaged as a result of an insured peril. This can include accommodation and a rental vehicle. Make sure you keep your receipts as sometimes you will need to pay up front and submit them for reimbursement later.

Expiry Date

The date when the policy expires or is no longer in force or is up for renewal.


F

Full-Timer

Someone who is travelling full time in their RV. The RV cannot be stationary or permanently parked.


G

Guaranteed Replacement Cost

In the event of a covered total loss (also known as a write-off), this coverage would replace the RV for new with a like unit, even if it is over and beyond what you paid. This is a type of loss settlement which you can choose when you purchase your policy.


H


I

Indemnify

To put the person who is insured back into the same position or situation they were before the loss.

Insured

The person who is listed on the insurance policy.


J


K


L

Loss

The basis of a claim for damaged under the terms of a policy. For example, you could say you had a loss on your RV if it is hail damaged, stolen, or involved in an accident.

Loss Settlement

This determines how the loss (or claim) is settled. It is the agreement between the insured (you) and the insurance company on how the claim is to be paid out. There are a few options: actual cash value, guaranteed replacement cost and replacement cost. Not all options are available in all scenarios (for example, if you have a trailer older than 15 years, you will likely only be eligible for actual cash value for your loss settlement).


M

Manufactured or Mobile Home

A manufactured or mobile home is a building that has been fully constructed inside a factory. These homes are generally built on a steel frame chassis that forms a part of the floor structure of the home – it is not removed, although the axles, wheels and hitch are removed after the unit has been delivered to the homeowner’s site. These homes are complete when they leave the factory except for incidental assembly on site. Manufactured homes are generally set on concrete piers of blocks. Once the home is delivered, it is not usually moved.

The manufactured home must be built to CSA standards and must conform to municipal and provincial regulations (local building codes) on tie-down and anchoring.

 

Market Value

The amount of money you would get for your RV if you sold it today.

Motorhome

A motor vehicle equipped with beds, a kitchen, a bathroom, and living quarters. A recreational vehicle that is drivable and is often used for camping or travel.


N


O

Occasional Driver

Someone who occasionally drives the vehicle (less than 50% of the time the vehicle is driven).

Overland Water

This is water that accumulates due to heavy rains, spring run-off, or overflow of lakes and rivers. This peril is not always covered and may require the purchase of additional coverage. An Overland Water Endorsement is generally sold as an add-on as part of a Water Damage package with sewer backup protection.


P

Park Model

These are manufactured park models that are permanently parked (on blocks or a permanent foundation) and seasonally occupied. The chassis is not removed. Generally, park models are no more than 50 feet in length, have a peaked roof and are fully skirted. These units must be permanently hooked up to electricity, water and a septic or sewer system.

Peril

A specific cause of damage or injury to a piece of property or person. Fire, hail, wind, theft, and flood are all perils.

Personal Liability

Covers claims of bodily injury and property damage to a third party (someone else) unintentionally done by you or someone in your household. Generally covered by home or renter’s insurance but may need to be purchased separately if you do not have this coverage.

Policy Limit

This is the maximum amount that you will receive in the event of a total covered loss.

Premises Liability

Helps cover expenses related to if someone is hurt or has their property damaged in-between the lot lines of a property owned, rented or leased by the insured (you).

Proof of Loss

This is a legal document that provides the insurance company with detailed information about a loss. It is the formal claim of damages.


Q


R

Replacement Cost

In the event of a total loss (the RV is written off), the full replacement cost of your RV will be covered up to the MSRP at the time of the RV being insured. This is the amount you will be given in the event of a covered total loss of your RV.

Replacement Cost Plus

This insures your RV to 110% of the policy limit (generally the MRSP of the RV at the time it was insured). In the event of a total loss, the insured would have this amount to replace the trailer.

Roadside Assistance

Basic roadside assistance is included in travel trailer policies. It includes towing a limited number of incidents and kilometres, gas delivery, entry if you’re locked out and more. You can upgrade your coverage for increased towing miles and perks.


S

Sewer Backup

Provides coverage for loss or damage caused by the sudden and accidental backing up or escape of water or sewage from a sewer, sump pump, or septic system provided that there is no evidence of flood water or overland water entering the building from an entry point other than the sewer backup itself.

Stationary Trailer

A trailer that is permanently parked and installed on a campground site and used as a seasonal residence. The trailer must be fully skirted and set upon a concrete foundation. It also must be permanently hooked up to electricity, water, and a septic or sewer system.


T

Third Party Liability

Helps protect you if you’re sued (or threatened to be sued) for physical injury or damage to someone else or their property. A common example is if you are in a car accident.

Towed Trailer

A trailer that is not permanently parked or situated. Usually towed site to site. A towed trailer can be parked on a lot but are not considered stationary if they still have the ability to be moved.


U

Underwriter

Are insurance professionals who evaluate and analyze the risks involved in insuring someone and their property.


V


W

Waiver

The act of intentionally relinquishing or abandoning a known right, claim or privilege. A signed form is required. A common example is if you decline a recommended insurance coverage, you will need to sign a waiver to acknowledge the fact you do not want the coverage.


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