Far more than just a camper on wheels, today's luxury motorcoaches provide an elegant environment for relaxation and travelwith the amenities found in a high-end hotel or a home featured inArchitectural Digest. Beautifully appointed, thesemulti-million dollar vehicles include everything from one-buttoncontrols that close the blinds, lower a flat screen television anddim the lights to retractable bunks with charging stations andstorage for electronics so the kids can play video games in bed,and every convenience you can imagine in between.

But what about insuring these high-end rides? It's morecomplicated than you might expect.

A luxury home on wheels

Once thought of as an extravagance only for the rich and famous,many successful individuals are finding travel by motor coach to bea relaxing way to see the country for vacation or after theyretire.

Custom coaches take anywhere from six to nine months to create,and “owners are only limited by their imagination,” says MikiMarkovich, assistant marketing manager with Marathon Coach, Inc.Their coaches feature blown glass sinks, custom furniture, gasfireplaces, bunks that convert to a wardrobe, Subzero appliances,onboard Wi-Fi, pullout pantries, full and half baths, and evendrawer-style dishwashers. A single keypad gives the ownersimmediate access to all of the coach's systems and an app allowsthem to monitor everything on their coaches from the temperatureand lights to the external awnings from anywhere in the world.

Markovich says all of the furniture is custom built so ownerscan select virtually any style and fabric for their coach and everyitem with the exception of the appliances, is hand-craftedin-house.

Insurance coverage options

Because these coaches are literally multi-million dollar homeson wheels, the insurance coverage required will differ depending onthe amenities and how the coach will be used, says claimsconsultant and author, Chris Tidball. When writing the policy, somequestions to ask include: Is it used primarily for business orrecreation? Where is it located? Is it in a high risk area?Who actually owns the RV – a company or an individual? Will therebe a professional driver or will it be driven by the owner?

“These vehicles may need to be insured on a recreational vehicleinsurance policy, not a personal auto policy because the coverageunder some insurers' PAP may only apply to personal passengervehicles, as defined in the policy,” explains Randy DeLopst, CPCU,with Taurus Insurance & Risk Managing Consulting, LLC.

Since a personal automobile is sometimes defined as a passengeror station wagon-type vehicle or van with a gross vehicle weight of15,000 pounds or less, a motor coach will not meet thisdefinition.

Replacement cost vs. actual cash value

“Regarding high value motor coaches/vehicles, physical damagecoverage should be on either a replacement cost basis or an agreedamount basis, not actual cash value,” says DeLopst. “If thephysical damage coverage is on an agreed amount basis, the vehicleowner must keep the insurance value up to date so that if a seriousloss occurs, the vehicle is not underinsured. Insurance valuesshould be reviewed and updated annually.”

DeLopst also recommends that owners itemize the high-end,permanently installed features in the vehicle such as flatscreenTVs, sound systems, GPS equipment, granite or quartz countertops,awnings, Subzero or other special refrigerators, and any customfinishes. A video or photographic inventory is critical.

Who's behind the wheel?

If an individual with commercial driving experience will be theprimary operator, it will be important to look at the individual'sdriving history and his or her experience for driving a vehicle ofthat size says Martin Hartley, executive vice president and COO ofPURE.

He concurs with DeLopst that an agreed value policy that willinsure the vehicle for its purchase price will provide the bestcoverage.

Contents coverage

Insuring the coach's contents is another consideration.

“Recreational vehicle policies usually provide some type ofpersonal effects coverage,” says DeLopst. “This coverage must becoordinated with the personal property/contents coverage of thevehicle owner's personal homeowners, condominium owners or renterspolicy.”

Owners should avoid having duplicate coverage for their personaleffects contained in the coach, especially since disputes couldarise over which policy is primary and multiple deductibles couldbe applied to a single loss.

Since many of these coaches often come with space to store apersonal golf cart, additional coverage may be required for thatvehicle as well.

Additional coverages

Other coverage policies to consider include rental reimbursementcoverage and roadside assistance. If your insureds are on vacationand the vehicle is unusable, this rental reimbursement coveragecould allow them to continue their trip while the coach is beingrepaired.

“Roadside assistance coverage could prove very useful to thevehicle owner if the motor coach/home becomes unusable far from theowner's personal residence,” adds DeLopst.

He also recommends that owners consider a personal umbrellaliability policy with high limits. Coverage prices range from $290for $1 million in coverage to around $26,000 for $50 million incoverage.

Photos courtesy of Marathon Coach, Inc.