Imagine that one of your customerswalks into your agency looking for insurance for his new traveltrailer. You pull a quick quote for an endorsement on his existingcar insurance policy. Pleased with the low price, your customerbuys and goes on his way.Months later, you find out that yourcustomer's RV was totaled. And that's not the only bad news:because the RV was simply added as an endorsement onto his autopolicy--and wasn't covered by a specialized RV policy--theinsurance check won't even cover the amount he still owes on hisloan.

While it can be quick, easy and sometimes cost-effective to addan RV to an existing auto policy, several incidents aren't fullycovered unless your customer has specialized RV insurance.

Here's what you need to know about RV insurance so that you cangrow your RV business and protect yourself in the process.

A car policy doesn't cover a lot of things that can go wrongwith an RV. These vehicles are much more than a car--they're houseson wheels. For example, if an RV is damaged during a trip, an autopolicy could leave your customers out in the cold. Specialized RVcoverages can pay up to $2,000 for lodging and transportation sothe policyholders 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 depreciated value, while specialized RV policies would pay theamount that your customer and the insurance company agreed the RVwas worth when they bought the policy, regardless of the RV's valueat the time of the loss.

Knowing what's covered and what's not can help you recommend thetype of policy that best fits your customer's needs.

Coverages, costs, and service The difference in price between aspecialized RV policy and an auto endorsement can be minimal, butthe difference in coverage is significant.

For example, if an RV breaks down, towing it to a repairfacility requires specialized--and more expensive--equipment, so anauto policy might not cover the full cost. Specialized RV coveragetypically fully covers roadside assistance claims.

Additional coverage options are available. For example,depending on the state, Progressive's RV coverage offers:

• Total loss replacement - Replaces a totaled RVwith a new model of similar make and quality
• Full timer's coverage - Provideshomeowner-like coverage for individuals who use their RV as aprimary residence
• Vacation liability - Pays up to the specifiedlimits for Bodily Injury and Property Damage for which a customeris legally responsible as a result of an accident that occurs whilethe RV is used as a temporary vacation residence. $10,000 limitsare included with Comprehensive and Collision coverage, but higherlimits are available
• Fire department service charge - Pays up to$1,000 in fire department charges when the department is called tosave or protect an insured RV. Higher limits are available.
• Pet injury coverage - If a pet sustains injuryin an RV loss that is covered by Comprehensive or Collisioninsurance, Progressive will pay up to $1,000
• Disappearing deductibles - For each year acustomer goes without a claim, this optional coverage reduces theirdeductible.

If your customer needs to use these coverages, a specialty RVinsurer has a claims staff that knows RVs inside and out, unlike anauto-only carrier whose reps work mostly with cars.

Market and cross-sell opportunities
Even in this economy, market opportunities exist for RV coverage.According to the Recreation Vehicle Industry Association (RVIA),more than 8.2 million American households currently own an RV.Plus, when RVers were surveyed by the group earlier this year, 45percent were considering another RV purchase, despite the currentrecession.

The RVIA is also beginning to see an increase in RV sales since themarket downturn last year, which could be attributed to agovernment-sponsored tax credit on motor homes, improved creditavailability, and increased interest in affordable family vacationoptions.

And don't forget to ask about other "toys" your customers mighthave: our research shows that RVers tend to own other types ofvehicles like motorcycles, boats, dirt bikes and ATVs.

Protect your customers and yourself
It'sbest to present both options--a specialized RV policy and apersonal auto endorsement--to your customers so they can make aninformed decision. And you'll protect yourself in the process.

Since most auto policies don't offer the same level of coveragefor motor homes and travel trailers that a specialized policy does,if your RV customer suffers a loss that's not covered, he or shemay take legal action against you and your agency. The No. 1 causeof E&O claims is failure to offer the proper coverage.

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

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