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 be a relaxing way to see the country for vacation or after they retire.

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

Markovich says all of the furniture is custom built so owners can select virtually any style and fabric for their coach and every item with the exception of the appliances, is hand-crafted in-house.

Insurance coverage options

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

“These vehicles may need to be insured on a recreational vehicle insurance policy, not a personal auto policy because the coverage under some insurers' PAP may only apply to personal passenger vehicles, 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 passenger or station wagon-type vehicle or van with a gross vehicle weight of 15,000 pounds or less, a motor coach will not meet this definition.

Replacement cost vs. actual cash value

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

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

Who's behind the wheel?

If an individual with commercial driving experience will be the primary operator, it will be important to look at the individual's driving history and his or her experience for driving a vehicle of that size says Martin Hartley, executive vice president and COO of PURE.

He concurs with DeLopst that an agreed value policy that will insure the vehicle for its purchase price will provide the best coverage.

Contents coverage

Insuring the coach's contents is another consideration.

“Recreational vehicle policies usually provide some type of personal effects coverage,” says DeLopst. “This coverage must be coordinated with the personal property/contents coverage of the vehicle owner's personal homeowners, condominium owners or renters policy.”

Owners should avoid having duplicate coverage for their personal effects contained in the coach, especially since disputes could arise over which policy is primary and multiple deductibles could be applied to a single loss.

Since many of these coaches often come with space to store a personal golf cart, additional coverage may be required for that vehicle as well.

Additional coverages

Other coverage policies to consider include rental reimbursement coverage and roadside assistance. If your insureds are on vacation and the vehicle is unusable, this rental reimbursement coverage could allow them to continue their trip while the coach is being repaired.

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

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

Photos courtesy of Marathon Coach, Inc.