Travel Trailers, Fifth Wheelers and Motorhomes are all classified as Recreational Vehicles, but there are differences in how the units are used, which also affects the coverage offered by RV insurance carriers.

When considering RV insurance, there are some key differences between a motorhome and a travel trailer or fifth wheel trailer. The main consideration is how the different types of units are moved from one point to another. While a motorhome has an engine and drive train that enables it to be moved on its own, travel trailers and fifth wheels require a separate vehicle to tow them from one location to another. This difference also affects some of the most basic coverage that is associated with recreational vehicle insurance policies. Motorhomes, because they are drivable units, require Bodily Injury and Property Damage Liability insurance coverage, while travel trailers and fifth wheel trailers do not.

Now, there may be some who are scratching their heads, wondering “…what is meant by Liability?” Simply stated, being liable means you are legally responsible for a debt. Whenever you are involved in a motor vehicle accident, the cost of treating injuries and repairing damages can often be very expensive. If it’s determined you are responsible for a vehicular accident, then you are indebted for the costs for medical treatment for injuries caused and to repair property damage done by your vehicle to other persons and/or vehicles. Purchasing Liability insurance not only satisfies most state’s requirement to register vehicles, but also helps to ensure that you are financially protected, in the event you are responsible for an accident.

Now that we have a better understanding of what Liability means, let’s get back to our original question: “why doesn’t a travel trailer policy include Bodily Injury and Property Damage Liability insurance coverage?” The easiest way to understand where the responsibility or liability falls is to think about where the driver sits while the vehicle is in motion. A Motorhome, because it moves under its own power, requires Bodily Injury and Property Damage Liability coverage. However, Travel Trailers and Fifth Wheel Trailers cannot be moved without the use of a tow vehicle, so the responsibility instead defaults to the vehicle that tows the trailed unit. So, if you are insuring a Travel Trailer or a Fifth Wheel, be sure to also consider the liability coverage limits associated with the vehicle you use to tow them. Looking for a quote or policy review? Contact us today.

This coverage explanation is for illustration purposes only and is general in nature. Coverage explained here may not apply to your policy, State, company, or situation. For more information about how your policy would respond in the event of a loss, please refer to the terms and conditions and declarations page of your policy.

STORIES FROM AN INSURANCE LAWYER PART 3

Protect yourself from a lawsuit in Safford, AZHave you ever had a tenant ask you to fix something one, twice? What about three times. Consider this story. Landlord, purchases rental property with older windows. Single pane, not super-efficient, but who want to replace the windows in your rental right away, right? Anyway, tenant complains to landlord, asking for double pane windows. This happens a couple of times. No action by the landlord. Now, we can argue whether or not this action is required of the landlord in any case, but it’s not material to the story. Tenant and her boyfriend are otherwise occupied. The tenant’s child, is playing by a two story window. Kid falls out of the window. Now, as I understand the story, Kid was okay, BUT the landlord gets sued. What? Yeah, it was a stretch, but the landlord got sued.

Basically, the tenant claimed that if the windows had been replaced then the child would not have fallen out of the window. Yeah, I am not sure how the new window somehow watches the kid and makes sure no one falls out the window, but I haven’t seen that model at my local Home Depot, but I digress. The suit went to court. In this case the Landlord won the case, and was not found negligent, BUT it begs two questions.

  1. Are you responding to your tenant’s request? The reason the case had any standing to begin with is that the tenant had made multiple requests that the windows be replaced.
  2. Defense costs, again a huge benefit of your insurance policy.

So, keep your property well-kept respond to these tenant requests, and be sure to purchase enough liability coverage. Start your landlord insurance quote online right now!

Landlord Insurance Safford, AZLandlord gets sued for a dog bite. For dog bite lessons please see “Why you should require your tenants to purchase renters insurance.” Landlord gets ticked at the lawsuit and the prospect of his insurance rates go up, squeezing his cash flow. Consequently, landlords decides to do a little investigative work. Simply because he believes the kid’s parents wanted him to fake the injury, and so the pain and suffering stuff would be hogwash. So, he has the kid followed, and gets sued.

Under what? Invasion of privacy. Question is, is that covered under your policy? The answer is that it depends. There are some companies that will offer personal injury coverage and there are others that don’t. On landlord policies the answer is probably not. Wait, what’s Personal injury? Personal injury is a broad term that covers several things. Most of them mental injury that we could cause to others. For example, defamation, libel, slander, false arrest or imprisonment, malicious prosecution, or invasion of privacy. Now you would never do anything like those types of things, right? Have you ever spoken negatively about a tenant? Have you ever bent the rules on your rights of a home inspection? Have you ever driven by just to see “what’s going on?” You get my point. It’s a fine line, and your tenant views you has the “rich landlord,” and there are plenty willing to take advantage of an opportunity. Not to defame any of your tenants, but you have probably had a tenant like that.

So, what can you do. Well, first off be aware, you might be just driving by, but the tenant might see that as a stifling landlord, or a weirdo, or you name it. Second, be sure you are covered. Not all insurance policies are the same. Do you have the coverage you need? Many landlord insurance policies specifically exclude personal injury liability, and I have yet to see a policy that automatically included an endorsement or “rider” that adds it automatically. In fact, it may simply not be available, in which case you would need to have a different risk management plan. Such as, stick to the lease in terms of inspections, don’t have your tenants followed, etc. That said, the question remains, what kind of coverage do you have? Take away? Contact your agent about personal injury coverage.