Getting started with an insurance quote for a vintage RV is like other policy types. Insurance carriers want to know the year, make, and model of the RV, along with the mailing address and drivers in the household. If the primary garaging address of the RV is different than the mailing address, that should be disclosed. RV policies need to be rated where the unit is primarily kept. If it is not located in one state six months or more, a full-time policy may be the right fit. The premium is determined through several factors including: driving history, age, number of days the RV is used per year, settlement type, RV value, location of the unit, credit, and claims history.
The best coverage option for vintage RVs is an agreed-value policy. With this settlement type, the insurance company would pay the entirety of the RV’s insured value at the time of a total loss, less any applicable deductible. The value of the RV does not depreciate.
An agreed-value policy can be secured in two different ways: through a bill of sale or a professional appraisal. If the RV being purchased has been restored, the value is established through a bill of sale, typically dated within the last two years, and accompanying interior and exterior photos. The other option to establish an agreed-value policy is through a professional appraisal.
The appraisal could be performed to start the policy or later in the policy term. For example, someone purchased a vintage RV for $10,000, but wanted to do some cosmetic upgrades. An agreed value policy could be written at $10,000, with a supporting bill of sale. Once the professional restoration was completed, they could contact an appraiser to complete an evaluation. A copy of the appraisal would be provided to the insurance company and the insured value of the RV would be increased to the amount listed on the appraisal.
There are underwriting guidelines with insurance companies regarding the scope of work that can be done if the vehicle is insured prior to the restoration being completed. It is best to check with the insurance company or agent and be transparent with the amount of work that will be performed.
Insurance carriers have different underwriting guidelines regarding how long the agreed value stays on the policy. Some are limited to ten years, while others keep that value for the lifetime of the policy. Be sure to check on the limitations with the carrier. Keep in mind that rare, vintage RVs should be reappraised every few years to keep the value current.
The best way to ensure a vintage RV is properly covered is to work with an RV specialist. They will be able to educate on the process and can write policies that will insure the asset properly.
