Before any replacement holiday home could be sited, the remains from the destroyed home need to be removed. You will find strict environmental rules governing the way in which this happens. The price of debris removal prior to the regulations could be high and varies based on local charges (normally between 2,000 and 5,000 with respect to the area).
Whenever you look at holiday home manufacturer"s literature recall the prices quoted could be "ex works". "Sited prices" can be significantly more as you have the delivery charge for transporting any replacement or new holiday the place to find the holiday caravan park. You will see also be an additional charge to set up your holiday home in your pitch and connect it towards the mains services for example water and electricity. Don"t forget any park owner"s sales commission which could add more than 30% towards the manufacturer"s price.
Your park owner will be able to confirm the likely cost for debris removal, delivery charges, re-siting costs and any extra charges they create.
Most insurers offer two kinds of cover: new for old (also called reinstatement) or market price (known as indemnity), however for older units, the possibility is often restricted to market value.
With new for old it is crucial that you insure for that cost of a fresh replacement or nearest equivalent i.e. the brand new cost as supplied for you by your park owner or even the manufacturer (whichever is greater). For this you need to add an allowance for just about any site clearance, debris removal, delivery and re-siting necessary in case of a total loss. It's also wise to add the brand new cost of any outbuildings, extensions along with other structural additions e.g. verandas, decking and balcony steps.
With market price, the structure of the holiday home ought to be insured for that cost of a second hand replacement of exactly the same age and condition taking account of wear and tear, tear and depreciation. Again make an allowance for site clearance, debris removal, delivery and re-siting costs. For just about any outbuildings or other structural improvements apply their market price.
It is important that you simply allow for a sufficient sum insured to prevent the possibility of any underinsurance penalty applying (sometimes known as average). If your holiday home"s sum insured doesn"t represent the entire cost of replacement, the insurer is only going to pay the same proportion from the loss or damage because the sum insured bears fully replacement cost.
If you want further guidance your insurer must have a Glass"s Help guide to Caravan Values which details both trade and retail current values of normal UK produced holiday homes.
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