Navigating the Challenges in Caravan and Tourist Park Insurance
The Caravan and Campground industry in Australia is facing significant hurdles when it comes to securing comprehensive insurance coverage. Many operators are grappling with declines in insurance applications and renewals from major insurers like QBE, Allianz, and CGU. Even insurers like All Parks are facing challenges. They are known for their strong support in this sector, yet the evolving insurance market affects them too.
The result higher premiums, and reduced coverage options for many businesses. These limitations pose significant risks to caravan parks, campgrounds, and tourist parks. It is essential for operators to understand the current challenges. They must seek practical solutions.
Key Concerns in Caravan and Tourist Park Insurance
1. Inability to Insure 100% Domestic Residences on Site
Insurers are increasingly declining coverage for residences used exclusively for domestic purposes. These include owners’ homes, managers’ accommodations, and employee cottages. These properties are often separate from commercial spaces like offices or receptions. This separation makes them difficult to insure under commercial policies.
Some brokers recommend domestic home insurance policies as a workaround. Yet, these policies are not designed for commercially licensed locations. They fail to cover claims, leaving park owners vulnerable.
Solution: COA’s Insurance Representatives have successfully sourced property coverage for members facing these challenges. This ensures comprehensive protection for domestic-use residences within commercial settings.
2. Limited Coverage for Cabins Over 15 Years Old
For older cabins, many insurers now only offer indemnity coverage instead of replacement value. If there is a total loss, the settlement is based on the depreciated market value. It is not based on the cost to replace the cabin.
For example, replacing a 15-year-old cabin will cost $100,000. Nonetheless, its value is only $50,000. This results in a significantly lower payout. Indemnity coverage is often less expensive. Nonetheless, the reduction in premiums rarely reflects the reduced level of protection. This situation leaves operators underinsured.
Solution: COA works with insurers to secure replacement cost coverage for older cabins. This ensures that businesses are adequately protected if a loss occurs.
3. Public Liability Restricted to Property Insurance Bundles
Some insurers now demand businesses to bundle public liability insurance with property insurance. This limits flexibility and reduces opportunities to improve coverage or cost. This can be especially problematic for parks with unique features. Parks with inflatable pillows or water parks face stricter underwriting requirements.
Solution: COA’s Member Insurance Program has helped parks secure coverage for high-risk features like inflatable pillows. This assistance was crucial even during periods when such coverage was nearly unavailable. COA works with specialized insurers. This partnership ensures businesses can access the public liability coverage they need. They get property coverage without unnecessary restrictions.
How COA Insurance Program Solutions Can Help
At COA Insurance Program Solutions, we understand the unique challenges facing caravan parks, campgrounds, and tourist parks. Our team is dedicated to helping you navigate these limitations and secure tailored insurance solutions that meet your specific needs.
- Expert Sourcing: We’ve successfully sourced coverage for properties and features that other insurers have declined.
- Flexible Options: Access standalone public liability insurance or comprehensive property coverage without restrictive bundling requirements.
- Personalized Service: Work directly with knowledgeable representatives who focus on your business’s protection.
Protect Your Business Today
If you’re concerned about gaps in your current insurance program, COA is here to help. Are you struggling to find coverage for unique needs? COA can assist with that too.
Become a COA member today. Gain access to tailored insurance solutions. These solutions protect your business, your property, and your peace of mind.
For more information, contact us at:
Phone: 0475703970
Email: ceo@coa.au
Don’t let the changing insurance market leave your business exposed. With COA, you can secure the coverage you need and focus on running your park with confidence.
