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Having had Caravan Club “New for Old” insurance for the last 2 years we are now faced with having to make our first claim.  This is due to a major over-voltage being put through the 2 year old caravan by the site electricians – so should be 3rd party de-frayable.

We could have claimed direct from the site itself – but after discussing with their Loss Adjustor he recommended we use our own insurance – since the site insurance would only pay out “like-for-like” replacing our caravan with a similar 2 year old model – roughly £13,000 worth.  He said it would also be quicker to go via our own insurers.

Since we use the caravan almost every weekend we need a fast solution!

However, a conversation with the Insurance Assessor appointed via the Caravan Club Insurance brokers seems to indicate that “new for old” doesn’t mean what we thought it did! 

Instead of taking our 2 estimates (roughly £12,000 - £13,000)– which put the caravan as un-repairable against its market value ie £13,000- the Caravan Club Insurance Assessor is saying that they would be prepared to fund repairs up to the full policy value of cover for a NEW replacement ie £23,500 less its salvage value roughly 35-40% ie £6,000 leaving a total of £17,500 for repairs!

We find it hard to believe that they are prepared to spend MORE than the market value on a van – to avoid having to actually give us a NEW caravan for our OLD caravan – which is what we expected.

Has anyone else had similar experiences?  URGENT HELP NEEDED!

Lee & Trish

Lee and Trish

I don't really understand what has happened to your van. Is it only the electrics which are damaged or has it caused major structural damage?

David

 "it only applied in those circumstances, such as a major accident or fire where the van was destroyed, and not where there was "peripheral" damage"

Exactly. We have new for old and it only applies when the van is totally wrecked e.g smashed to bits by a passing lorry; burnt to a cinder etc. If it is damaged and can  be repaired then that is what we get. Just like house contents insurance. We had a claim under that years back and some stuff was repaired and other stuff was replaced new for old after our little flood.

Phil

Sorry - tried to keep original post brief - but see you need more info so....

Both 240v and 12v wiring looms damaged - need replacing complete. All wiring accesories switches sockets etc have had an excess voltage - they are rated at 300vAC they've had 440v put through them. Bonus plug in system fuseboard and charger burnt out. leisure battery is fried. Alde boiler failed. fridge, microwave plus almost everything electrical that was on line, solar panels, alarm systems etc etc the list goes on! We even had phone chargers melted in the sockets!

BTW I am an Electrical contractor!

Both caravan repair quotes - and indeed the Assessor - have agreed everything needs fully replacing for safety purposes.  They are all in agreement that the total cost may be in excess of the market value of the caravan.  The difference is the repairers don't think its a viable job - whereas the Assessor sees it as viable because it will come in at less money than a replacement new caravan.

We just wanted to know if anyone else had experienced a similar reaction?

BTW The caravan wasn't in storage - it was seasonally pitched and we were using it at the time - luckily no one was in the caravan when it occured!

If you have not already done so, point out to the loss adjusters that they would be saving money by supplying you with a new van.

First offers from assessors tend to be low to "test the water". Its a fight sometimes and I am afraid that is part of the "game".

Have a very close look at the Ts and Cs of the policy to find any relevant clauses that assist your cause and quote them back at the assessor. Push the total destroyed argument and an entitlement to new for old. Try suggesting that you may refer the matter to the insurance ombudsman (the CC insurers are part of the scheme.)

Phil

Quote: Originally posted by cwdc56768 on 08/11/2010

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First offers from assessors tend to be low to "test the water". Its a fight sometimes and I am afraid that is part of the "game".

Have a very close look at the Ts and Cs of the policy to find any relevant clauses that assist your cause and quote them back at the assessor. Push the total destroyed argument and an entitlement to new for old. Try suggesting that you may refer the matter to the insurance ombudsman (the CC insurers are part of the scheme.)

Phil

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