Imagine that one of your customers walks into your agencylooking for insurance for his new travel trailer. You pull a quickquote for an endorsement on his existing car insurance policy.Pleased with the low price, your customer buys and goes on hisway.

Months later, you learn that your customer's RV was totaled. Andthat is not the only bad news: Because the RV was simply added asan endorsement onto his auto policy — and was not covered by aspecialized RV policy — the insurance check will not even cover theamount he still owes on his loan.

While it can be quick, easy, and sometimes cost effective to addan RV to an existing auto policy, several incidents are not fullycovered unless your customer has specialized RV insurance. Here iswhat you need to know about RV insurance and how you can grow yourRV business and protect yourself in the process.

What's Covered and What's Not

Knowing what is covered and what is not can help you recommendthe type of policy that best fits your customer's needs. A carpolicy does not cover a lot of things that can go wrong with an RV.After all, these vehicles are much more than a car — they arehouses on wheels. Your customers might need specialized RVinsurance that covers more than what a standard car insurancepolicy is designed to do.

For example, if an RV is damaged during a trip, an auto policycould leave your customers out in the cold. But specialized RVcoverages would pay up to $2,000 for lodging and transportation, sothey could still enjoy their vacation.

Similarly, expensive items like outdoor gear, laptops, or otherelectronics stolen from inside an RV would be covered by an RVpolicy, but typically would not be covered by an auto policy.

Specialized RV coverage can also protect against depreciation ifan RV is totaled. A typical car insurance policy would only pay theRV's actual cash value, but an RV “agreed value” type of policywould pay the amount that your customer and the insurance companyagreed the RV was worth when he bought the policy, regardless ofthe RV's value at the time of the loss.

Coverages, Costs, and Service

A specialized RV policy does not have to break the bank. Thedifference in price between a specialized RV policy and an autoendorsement may be minimal, but the difference in coverage issignificant.

For example, if an RV breaks down, towing it to a repairfacility requires specialized — and more expensive — equipment. Anauto policy might not cover the full towing cost. With dedicated RVcoverage, roadside assistance claims like these normally are fullycovered.

Additional coverage options are available. For example, inFlorida, Progressive offers:

?Total Loss Replacement — Replaces a totaled RV with a new modelof similar make and quality.

?Vacation Liability — Pays up to the specified limits for bodilyinjury and property damage for which a customer is legallyresponsible as a result of an accident that occurs while the RV isused as a temporary vacation residence.

?Full Timer's Coverage — Provides homeowners'-like coverage forindividuals who use their RVs as a primary residence.

?Fire Department Service Fee — Pays up to $1,000 in firedepartment charges when the department is called to save or toprotect an insured RV.

?Pet Injury Coverage — Pays up to $500 if a pet sustains injuryin an RV loss that is covered by comprehensive and collisioninsurance.

?Disappearing Deductibles — Reduces the deductible for each yeara customer goes without a claim.

In the unfortunate event that your customer needs to use thesecoverages, a specialty RV insurer has a claim staff that knows RVsinside and out — unlike an auto-only carrier whose staff workmostly with cars.

Market and Cross-Selling Opportunities

Market opportunities do exist, even in today's economy.According to the Recreation Vehicle Industry Association, more than8.2 million American households own an RV, and more than 135,000RVs are registered with the Florida Department of Highway Safetyand Motor Vehicles.

Ask your customers if they own an RV, and follow up by askingthem about other “toys” they might have. RVers tend to own othertypes of vehicles like motorcycles, boats, dirt bikes, and ATVs.You can cross-sell and grow your business.

Quoting a specialized RV policy is easy. Some carriers haveextensive make-and- model pick lists and “help text” available toanswer any questions you might have.

Protect Your Customers and Yourself

It is best to present both options — a specialized RV policy anda personal auto endorsement — to your customers so they can make aninformed decision. By discussing the options with them, you willprotect yourself in the process. Since most auto policies do notoffer the same level of coverage for motor homes and traveltrailers that a specialized policy does, if your RV customersuffers a loss that is not covered, he may take legal actionagainst you and your agency. The number one cause of agent E&Oclaims is failure to offer the proper coverage.

By educating both yourself and your customers about RVinsurance, you will be able to protect your business and sell morepolicies — and your customers will be protected from theunexpected.

Cathy Pelfrey is an RV insurance expert with Progressive. Moreinformation about Progressive's RV coverages is available atwww.progressiveagent.com/rv/rv-insurance.aspx.