What Does Caravan Insurance Actually Cover?
Comprehensive caravan insurance covers storm, hail, flood, fire, theft, accidental damage, and legal liability up to $20 million. But what it doesn't cover matters just as much. Annexes, contents, modifications, and off-road travel all have conditions that vary between insurers and can be the difference between a paid claim and a denied one.
What comprehensive caravan insurance covers in Australia
A comprehensive caravan policy is the full package. It protects your rig against damage and loss from a wide range of events, and it covers the damage your rig causes to other people and their property.
The core events covered by every major Australian insurer are:
- Accidental damage, collision, and rollover, even if you're at fault
- Storm, hail, and lightning
- Flood (included as standard by most insurers; CGU requires it as an optional add-on)
- Fire and bushfire
- Theft and attempted theft (most insurers treat the caravan as stolen after 14 days unrecovered)
- Vandalism and malicious damage
- Tsunami and earthquake
Beyond the core damage cover, most comprehensive policies also include:
- Legal liability: $20 million is the industry standard. This covers damage your caravan causes to other people's property or injury it causes to others.
- Towing to the nearest repairer after an insured event
- Emergency repairs: Typically $500 to $1,000 per incident to get you mobile or safe
- Emergency accommodation: When your van is unliveable after an insured event. Limits vary a lot: more on this below.
- New-for-old replacement: If your caravan is written off or stolen in the first two years, most insurers will replace it with a new one of the same make and model
- Food spoilage: Typically $200 to $500 when a fridge fails after an insured event
- Motor burnout: Electric motors in fridges, air conditioners, and appliances, usually up to $1,000 for motors under 15 years old
- Contents cover: Personal items inside the caravan, up to a standard limit (usually far too low: more on this below)
One thing most people don't realise: if your policy includes a 72-hour waiting period for storm, flood, or bushfire claims, any damage from a severe weather event in the first three days of a new policy won't be covered. Check this if you're switching insurers during storm season.
What caravan insurance does not cover
Understanding the exclusions is just as important as understanding the cover. Most claim disputes come down to one of these.
Wear and tear and maintenance failures
Rust, corrosion, mould, rot, gradual deterioration: none of this is covered. Insurance is for sudden, unexpected events. Not for things that have happened over time.
Seal failure is a specific one to be aware of. Many insurers explicitly exclude damage caused by failing roof or wall seals. If water has been getting in through a seal that hasn't been maintained, the resulting rot and water damage can be refused. Keep records of maintenance. Get seals checked regularly. If you make a claim involving water damage, being able to show recent service invoices helps considerably.
Mechanical and electrical breakdown
If your fridge stops working because it's old, that's not covered. If it stops working because a storm blew your van off a site and damaged it, that is covered. The distinction is whether the breakdown was caused by an insured event.
Tyre damage
Punctures, cuts, blowouts, and road surface damage to tyres are universally excluded. So is damage from insects or vermin.
Overloading
This one is serious. If you exceed your caravan's Aggregate Trailer Mass (ATM) or your tow vehicle's Gross Combined Mass (GCM), your insurer can refuse the entire claim, including any damage to your car. Not just the portion related to the overloading. The whole claim.
The ATM is the maximum your caravan can weigh when fully loaded. The GCM is the maximum combined weight of your tow vehicle and caravan together. Both are stamped on compliance plates. Both matter. Even rear axle overloading on your tow vehicle can be grounds for refusal, even if your total GCM is within limits.
Weigh your rig before you travel. It takes 20 minutes at a public weighbridge and could save you from losing your entire claim.
Driving or towing under the influence
If the driver was over the legal blood alcohol limit or affected by drugs at the time of an incident, the claim is denied. No exceptions.
Commercial and hire use
Using your caravan for Airbnb-style rentals, hire, or any commercial purpose is generally excluded unless you have a specific hire-use endorsement on your policy. A small number of insurers offer optional hire cover. Most don't.
Undeclared modifications
If you've added solar panels, a lithium battery system, suspension upgrades, a satellite dish, an entertainment system, or any other aftermarket modification and haven't told your insurer, you risk having the entire claim denied. Not just the modification. The entire claim.
This is a much bigger issue than most people realise. The total modification investment on a well-equipped touring rig can easily reach $10,000 to $20,000 above the base van price. Declare everything. Update your insurer at each renewal. Keep receipts and photographs.
There's an additional consideration for electrical work done after November 2023. New Australian standards (AS/NZS 3001.2:2022) require lithium batteries inside the habitable area to be in a sealed enclosure with external ventilation, and all lithium batteries to carry specific certification. Solar installations and inverters have additional requirements. Non-compliant electrical work that causes a fire may result in the claim being denied. Use certified installers and keep all documentation.
Off-road travel on a standard policy
Most standard caravan policies cover sealed roads and gazetted unsealed roads, but charge an extra excess (typically around $200) for incidents on unsealed surfaces. Some won't cover off-road use at all unless the caravan is purpose-built for it.
A gazetted road is one that appears on government maps and is legally maintained. Many great free camps and national park tracks are on ungazetted roads. If your policy only covers gazetted roads and you're on an ungazetted track when something happens, you have no cover. Read your PDS carefully if you go off-road regularly.
Pet damage
Damage caused by your own pets is excluded by most insurers.
Unsecured caravans
Most policies require your caravan to be locked when unattended. If items are left in an unsecured annexe, theft cover for those items may not apply. Some policies require specific security devices (wheel locks, coupling locks) as a condition of cover. Check what your policy requires.
Annexe and awning cover: the detail most people miss
Fixed awnings that are permanently attached to the van (the roll-out type) are generally covered as part of the caravan structure under all major policies. No additional cover is needed for these.
Freestanding or pop-up annexes are treated very differently. Most major insurers do not automatically cover them when they are set up and in use.
The model used by the Suncorp group of brands (which includes CIL, AAMI, GIO, Suncorp, and Apia) is a good example of how this works in practice. Under these policies, your annexe is covered at market value when it is locked inside the caravan. The moment you set it up on a site, that cover stops unless you have added an optional annexe cover to your policy. Many people don't realise this until they make a claim.
Some insurers cap annexe cover at $1,000, which is nowhere near enough for a quality annexe. Ask specifically about annexe cover before you commit to any policy. If you use an annexe regularly, make sure it is covered when deployed.
Contents cover: why $1,000 is almost never enough
Most standard caravan policies include between $1,000 and $2,000 for contents. Contents means the personal items inside your van: clothing, bedding, crockery, cutlery, camping gear, fishing equipment, tools, and similar.
For a weekender making short trips with minimal gear, $1,000 might be fine. For a grey nomad on a six-month Big Lap carrying cameras, fishing gear, two laptops, medical equipment, bikes, and months of personal possessions, $1,000 doesn't scratch the surface.
Most insurers allow you to increase your contents limit for a modest additional premium. Some allow increases up to $15,000 or more. If you carry more than $2,000 in personal gear, increase your contents limit.
One thing to note: most policies exclude mobile phones, tablets, laptops, jewellery, cash, and works of art from standard contents cover. These typically need to be covered under a portable items endorsement or through your home contents policy. Check what is and isn't included before you assume everything is covered.
Emergency accommodation: a wide gap between insurers
If your caravan is damaged in an insured event and becomes unliveable, most comprehensive policies pay for emergency accommodation while your van is repaired or replaced. The amounts, however, vary enormously.
At the lower end, some mainstream policies offer just $500 combined for all after-claim expenses, including accommodation and food spoilage. At the higher end, some insurers pay $150 per day for up to 30 days, a total of $4,500.
For a weekender who travels close to home, the lower limit might not matter much. For a grey nomad who is 1,500km from home when their van is written off in a storm, $500 doesn't get you far. Check this number when you compare policies. It varies more than almost any other benefit.
Most insurers require you to be more than 100km from your home address for emergency accommodation cover to apply.
New-for-old replacement
If your caravan is written off or stolen and not recovered within 14 days, and it qualifies for new-for-old replacement, your insurer will replace it with a new caravan of the same make, model, and series.
Most major insurers offer new-for-old replacement for two years from the date of first registration. A small number extend this to three years. You must be the first registered owner for this benefit to apply.
Outside the new-for-old period, agreed value policies pay you the agreed dollar amount you set when you took out the policy. Market value policies pay you what the insurer determines your caravan was worth at the time of the loss. For most caravan owners, agreed value is the better option, especially if you've made modifications or still have finance owing.
How cover differs for different rig types
Touring caravans
Standard caravan policies cover these by default. Every major insurer includes them. They need their own policy separate from the car that tows them.
Off-road caravans
Covered by caravan policies, but most charge an extra excess of around $200 for incidents on unsealed roads. Some won't cover off-road use unless the caravan is purpose-built for it. If you regularly travel off sealed roads, check your policy's definition of covered terrain carefully.
Motorhomes
A different category entirely. Because motorhomes drive under their own power, they need motor vehicle insurance, not caravan insurance. They also need their own registration and Compulsory Third Party insurance. Some caravan insurers don't cover motorhomes at all.
Camper trailers
Need their own separate insurance. Your car policy won't cover them adequately. Pop-up canvas sections carry specific risks around theft when unoccupied: check the PDS on this point.
Fifth wheelers
High-value rigs that need specialist cover. Not all insurers specifically list them. Check that your insurer explicitly covers fifth wheelers before you commit.
Pop-tops and hybrids
Generally covered under standard caravan policies, but canvas sections are a specific area to check. Damage to canvas pop-top structures varies between policies.
Not sure what cover you actually need?
The right policy depends on your rig, how you travel, and what you carry. A weekender with a standard pop-top stored in a garage needs different cover to a grey nomad with a heavily modified off-road caravan doing a full Big Lap.
Our matching tool works through six quick questions and shows you the insurers best suited to your specific situation. Not just in theory, but based on what their policies actually cover. Off-road travel, full-time living, high-value modifications, motorhomes: the right match is different for each.
Find cover that suits my rig →
Frequently asked questions about caravan insurance cover
Does caravan insurance cover storm and flood damage?
Storm and flood damage are included as standard under comprehensive caravan insurance from most major Australian insurers. CGU is the main exception: they offer flood cover as an optional add-on rather than a default inclusion. Be aware that some insurers apply a 72-hour waiting period for flood, storm, and bushfire claims on new policies, which means damage in the first three days of cover may not be paid.
Is my annexe covered by caravan insurance?
Fixed awnings permanently attached to your caravan are generally covered as part of the caravan structure. Freestanding or pop-up annexes are a different story. Most major insurers (especially those in the Suncorp group, which includes CIL, AAMI, GIO, Suncorp, and Apia) only cover your annexe when it is locked inside the caravan. When it is set up on a site, that cover stops unless you have added optional annexe cover. Always check this before you take out a policy.
What happens if I exceed my caravan's weight limit and make a claim?
Overloading, which means exceeding your caravan's Aggregate Trailer Mass (ATM) or your tow vehicle's Gross Combined Mass (GCM), can result in your insurer refusing the entire claim, not just the portion related to the overloading. This is one of the most serious exclusions in caravan insurance. Weigh your rig before long trips. Know your compliance plate figures. Even rear axle overloading can be grounds for refusal.
Are modifications like solar panels and lithium batteries covered?
Only if you've declared them to your insurer. Undeclared modifications, including solar panels, lithium batteries, suspension upgrades, satellite dishes, and aftermarket accessories, can result in your entire claim being denied, not just the modified component. Declare everything when you take out the policy and update your insurer each time you make changes. For electrical work done after November 2023, ensure the installation meets current Australian standards (AS/NZS 3001.2:2022) or a non-compliant installation that causes a fire may not be covered.
Does caravan insurance cover contents like laptops and cameras?
Standard contents cover typically includes clothing, bedding, camping gear, fishing equipment, and kitchen items. Laptops, mobile phones, tablets, cameras, jewellery, and cash are often excluded or subject to separate limits. Standard contents limits are usually just $1,000 to $2,000, which is inadequate for most grey nomads. You can increase the contents limit with most insurers for an additional premium. For expensive electronics and cameras, consider a portable items endorsement or check your home contents policy.
Does caravan insurance cover off-road and remote travel?
It depends on the policy. Most standard comprehensive policies cover travel on gazetted unsealed roads but charge an additional excess of around $200 for incidents on those surfaces. Some policies won't cover off-road use at all unless the caravan is purpose-built for it. Ungazetted tracks, beaches, and remote 4WD terrain may not be covered under a standard policy. If you regularly travel off sealed roads, look for a policy that explicitly covers the terrain you travel on rather than assuming your standard policy applies.
This article is general information only and does not constitute financial advice. Coverage details vary between insurers and policies. Please read the Product Disclosure Statement for any policy you are considering before purchasing. For advice specific to your situation, speak with a licensed insurance broker.
— The team at Compare Caravan Insurance