The figures noted above also are important in relation to potential fraudulent claim activity. Fraud is not absent in RV claims by any means, but fraud occurrence by an RV customer is lower than the average profile of those involved in fraudulent claim activity, which is the result of a more stable owner profile.

A Question of Coverage

Adjusters will encounter several coverage-interpretation challenges when dealing with RV claims due to vehicle personalization and specific maintenance requirements. It is imperative that adjusters understand these unique issues, because errors in coverage interpretation are magnified on RV claims due to the cost of repairs and the values of RVs, regardless of whether the insured or insurer bears the cost.

More so than automobiles, RVs are customized to the individual needs and preferences of their owners. It is the rule rather than the exception. Screen rooms, awnings, outdoor entertainment centers, high-end electronics, mobile satellite systems, and many other options are added to RVs by their owners during or after purchase. Specialty RV insurers are likely to provide broader coverage for these add-ons than non-specialty insurers, but policies differ, so it is important for the adjuster to be informed on what the policy covers and what may be excluded.

RVs are no different than automobiles in that they also have specific maintenance requirements to keep them running and usable. But the extent of the necessary maintenance can differ. For example, in addition to routine maintenance, RVs normally have factory recommendations for resealing windows, roofs, and roof components. Failure to properly follow the factory recommendations on seal maintenance can result in significant water damage, mold, and structure deterioration. Policies often have coverage limitations for damage that results from failed or improper maintenance. While there are many reasons that a RV may sustain water damage, recognizing the normal maintenance requirements for RVs allows adjusters to make informed and appropriate coverage decisions consistent with policy language.

Liability investigations for RV claims also require some additional consideration and understanding of the RV itself. As always, adjusters should be diligent in looking at each set of factors 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 accident involving an RV may not be as obvious as it seems. The ability of an RV operator to avoid sudden occurrences, such as an unexpected lane change by another vehicle or sudden traffic stoppage, should be thoroughly reviewed. Adjusters should avoid the pitfall of attributing liability based on experience dealing with auto claims.

Another unique claim involves RV fires, which are traumatic to the customer and can have a substantial indemnity cost as well. The impact of the loss on the customer will be immediate and measurable, but adjusters should be conscious of subrogation potential throughout the adjusting process while also addressing the immediate claim concerns. Fires also may be accidental (a stove left on), suspicious, or due to a faulty product or production. Please note that there are several major recalls currently outstanding for common RV components. A simple web search will bring up the most common recall issues for review.

The cause may be known and listed on the report, or it may never be known depending on the extent of the burn. The important thing to remember is to protect the burned vehicle whenever possible until ruling out any subrogation potential. This may require paying additional storage or having the RV protected with a tarp to avoid spoliation. Consider initiating an origin-and-cause investigation immediately. This requires factoring in the age of the RV, its value, and the circumstances of the fire to determine if an expert is justified. Regardless, it should be a consideration in every fire. There may be pressure to move the vehicle immediately — a campground with a burned RV will not want that RV sitting out in the open — but take every action possible to protect it, as any spoliation issues will severely limit your subrogation potential.

Optimizing the Repair Process

Ideally, adjusters will have a quality repair network established for RV customers, but in reality, repair options may be limited depending on the size of the RV customer base and the location of the accident. Regardless of the shop network, there are two keys to optimizing the repair process: customer involvement and shop capability.

Customers are almost always involved in shop selection, whether through using the shops within networks or by the shops they are considering independently. The difference for RV claims is that customers often are traveling when their accidents occur, so they have limited familiarity with the area in which they are, and adjusters may not have a repair network to offer them. In these cases, be ready to consult the manufacturer (most have a central web site with a service locator) for recommendations, or contact local campgrounds or RV businesses to locate a quality repair facility nearby. Ask the customer to look at the shop or speak with them if possible, as it will give them a higher level of comfort with the repairs. This approach will lead to identifying a qualified repair facility for most claims, but be prepared for alternate solutions as well, particularly with severe damage and high-value RVs.

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

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

Another important factor is to consider the shop's work schedule. During peak seasons, it is not uncommon for RV shops to have a backlog of several weeks. Adjusters will need to actively seek alternate shops and consider whether the cost to move a unit to a different location is justified. Loss of use may become a significant issue on third-party claims with a lengthy repair window. Shop selection will not only improve the customer experience, but also will help control indemnities.

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

Greg Helm is national RV director, GMAC Insurance – Personal Lines.