The RV industry is growing rapidly and with that growth,adjusters will naturally see more claims. Over the next decade, theRecreation Vehicle Industry Association (RVIA) estimates a 15percent increase in RV ownership during a period when populationgrowth is less than five percent. In this decade, an average of12,000 baby boomers per day will turn 50, and ownership of RVsamong 45-to-54 year olds is expected to continue to grow.

With this influx of RV claims, adjusters must be prepared tohandle their unique requirements. The core issues remain the sameas with auto claims — coverage, liability, and damage analysis.However, the investigation and handling of those core issuesrequires knowledge about the customer, as well as what an RV is andhow it behaves. Understanding the differences inherent in adjustingthose claims is a necessity for success.

The RV Lifestyle

The average RV is parked and unused the majority of the timebecause 90 percent of RV owners also maintain a fixed residence.For most RV owners, this vehicle is used on the occasional familyvacation or weekend trip. At a glance, the size of RVs and theirmobility could appear to yield a high claim frequency, but due totheir limited use, RV claim frequency is actually lower. On theother hand, the cost of most RVs is higher than that of the averageautomobile — sometimes exceeding $500,000 — so the per-claimseverity is often higher in proportion.

The figures noted above also are important in relation topotential fraudulent claim activity. Fraud is not absent in RVclaims by any means, but fraud occurrence by an RV customer islower than the average profile of those involved in fraudulentclaim activity, which is the result of a more stable ownerprofile.

A Question of Coverage

Adjusters will encounter several coverage-interpretationchallenges when dealing with RV claims due to vehiclepersonalization and specific maintenance requirements. It isimperative that adjusters understand these unique issues, becauseerrors in coverage interpretation are magnified on RV claims due tothe cost of repairs and the values of RVs, regardless of whetherthe insured or insurer bears the cost.

More so than automobiles, RVs are customized to the individualneeds and preferences of their owners. It is the rule rather thanthe exception. Screen rooms, awnings, outdoor entertainmentcenters, high-end electronics, mobile satellite systems, and manyother options are added to RVs by their owners during or afterpurchase. Specialty RV insurers are likely to provide broadercoverage for these add-ons than non-specialty insurers, butpolicies differ, so it is important for the adjuster to be informedon what the policy covers and what may be excluded.

RVs are no different than automobiles in that they also havespecific maintenance requirements to keep them running and usable.But the extent of the necessary maintenance can differ. Forexample, in addition to routine maintenance, RVs normally havefactory recommendations for resealing windows, roofs, and roofcomponents. Failure to properly follow the factory recommendationson seal maintenance can result in significant water damage, mold,and structure deterioration. Policies often have coveragelimitations for damage that results from failed or impropermaintenance. While there are many reasons that a RV may sustainwater damage, recognizing the normal maintenance requirements forRVs allows adjusters to make informed and appropriate coveragedecisions consistent with policy language.

Liability investigations for RV claims also require someadditional consideration and understanding of the RV itself. Asalways, adjusters should be diligent in looking at each set offactors around the individual accident before assessing liability.RVs do not behave as autos do; they are longer, taller, heavier,and can have increased braking distances, limited maneuverability,and less stability. Therefore, liability for a rear-end accidentinvolving an RV may not be as obvious as it seems. The ability ofan RV operator to avoid sudden occurrences, such as an unexpectedlane change by another vehicle or sudden traffic stoppage, shouldbe thoroughly reviewed. Adjusters should avoid the pitfall ofattributing liability based on experience dealing with autoclaims.

Another unique claim involves RV fires, which are traumatic tothe customer and can have a substantial indemnity cost as well. Theimpact of the loss on the customer will be immediate andmeasurable, but adjusters should be conscious of subrogationpotential throughout the adjusting process while also addressingthe immediate claim concerns. Fires also may be accidental (a stoveleft on), suspicious, or due to a faulty product or production.Please note that there are several major recalls currentlyoutstanding for common RV components. A simple web search willbring up the most common recall issues for review.

The cause may be known and listed on the report, or it may neverbe known depending on the extent of the burn. The important thingto remember is to protect the burned vehicle whenever possibleuntil ruling out any subrogation potential. This may require payingadditional storage or having the RV protected with a tarp to avoidspoliation. Consider initiating an origin-and-cause investigationimmediately. This requires factoring in the age of the RV, itsvalue, and the circumstances of the fire to determine if an expertis justified. Regardless, it should be a consideration in everyfire. There may be pressure to move the vehicle immediately — acampground with a burned RV will not want that RV sitting out inthe open — but take every action possible to protect it, as anyspoliation issues will severely limit your subrogationpotential.

Optimizing the Repair Process

Ideally, adjusters will have a quality repair networkestablished for RV customers, but in reality, repair options may belimited depending on the size of the RV customer base and thelocation of the accident. Regardless of the shop network, there aretwo keys to optimizing the repair process: customer involvement andshop capability.

Customers are almost always involved in shop selection, whetherthrough using the shops within networks or by the shops they areconsidering independently. The difference for RV claims is thatcustomers often are traveling when their accidents occur, so theyhave limited familiarity with the area in which they are, andadjusters may not have a repair network to offer them. In thesecases, be ready to consult the manufacturer (most have a centralweb site with a service locator) for recommendations, or contactlocal campgrounds or RV businesses to locate a quality repairfacility nearby. Ask the customer to look at the shop or speak withthem if possible, as it will give them a higher level of comfortwith the repairs. This approach will lead to identifying aqualified repair facility for most claims, but be prepared foralternate solutions as well, particularly with severe damage andhigh-value RVs.

One such option is to consider an extended tow back to themanufacturer or one of the company's direct repair facilities inanother area. At first glance, paying several hundred or evenseveral thousand dollars to tow a unit back to the manufacturer orpreferred shop in another area may seem excessive, but there areseveral benefits to offset the cost. One is that having themanufacturer complete the repairs will save costs for partsshipping, which for large RV repairs could cost just as much as thetow. In most scenarios, repairs done at the manufacturer willeliminate at least a portion of these costs. Another is that theshop will be familiar with large repairs and likely will provide arepair warranty. Smaller facilities may have limited pastinvolvement with large repairs and a limited warranty.

The value of repair knowledge will show itself in fewerpost-repair issues. Remember that the customer may be some distancefrom home when a claim occurs, so ensuring the return of the RV inpre-loss condition without supplemental issues will be key.However, there are certainly smaller shops more than capable ofhandling large repairs, too. The bottom-line is to be diligent inexploring shop selection.

Another important factor is to consider the shop's workschedule. During peak seasons, it is not uncommon for RV shops tohave a backlog of several weeks. Adjusters will need to activelyseek alternate shops and consider whether the cost to move a unitto a different location is justified. Loss of use may become asignificant issue on third-party claims with a lengthy repairwindow. Shop selection will not only improve the customerexperience, but also will help control indemnities.

Adjusters may not deal with RV claims on a daily basis, butthose who understand the basics should be able to appropriatelyaddress questions within the policy confines. Ultimately, they willbe more effective in handling the claim.

Greg Helm is national RV director, GMAC Insurance – PersonalLines.