Specialty RV Coverages: Total Loss Replacement, Purchase Price Guarantee, and Agreed Value

Many of those RVs are insured with non-specialized coverage.  At Explorer Insurance Agency, we realize how significant an investment a RV can be.  This article discusses the three coverage options that are the foundation of the specialized RV policy. Each option provides a form of depreciation protection, but provides it in a different manner.  

Total Loss Replacement is available to original owners of RVs with a model year within four years of the current year.   This option provides depreciation protection for the first 10 model years.  If a total loss occurs during the first 5 model years, the insurance company will replace the RV with the newest model, or a comparable RV.  If a total loss occurs during the second five model years, the insurance company will pay the insured the purchase price paid by the insured for the total loss RV to be used towards the purchase price of a replacement RV. 

Purchase Price Guarantee is available to owners of a used RV purchased within the most recent 12 months, and where the model year is no more than 10 years old.  This option also provides depreciation protection for the first 10 model years.  If a total loss occurs at any time during the first 10 model years of the covered RV, the insurance company will pay the insured the purchase price paid for the total loss RV to be used towards the purchase price of a replacement RV.Agreed Value coverage is available to all owners of bus conversion style RVs.  This option is available only for bus conversions, and it provides depreciation protection for three years.  The insurance company requires an appraisal be submitted to provide proof of value.  In the event of a total loss, the insurance company will pay the appraised value to the insured for three years.  The insured has the option to submit a new appraisal every three years to maintain this option.  

The purchase of an RV is a significant investment.  The idea behind these specialty coverage options is to protect that investment during the years where an unforeseen accident or loss can turn the investment into an unwelcome financial setback.

For a free review of your policy go to www.explorerrv.com/Quote   or call 888-774-6778

Kraig Kelly

Specialty Agent

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