As a specialist insurer in the leisure industry, and more specifically the holiday and residential park sector, the team at Compass is often asked about what to consider when insuring a holiday caravan, lodge or park home. Here are the company’s top tips…

Holiday caravans, lodges and park homes are built to very specific standards, but can be more susceptible to damage than traditional houses and, as they are normally located on a licensed park, you need a tailored and specialist policy. Compass has insured tens of thousands of holiday caravan, lodge and park home customers and, in this piece, it lists its top tips when buying, or renewing, your policy.

1 Get your sums insured right! With the cost of new caravans and lodges on the increase, it’s more important than ever to insure for the right amount. Speaking to your park owner is the simplest way to work out what it would cost to replace your home with a brand new one on your park. Don’t forget to include any decking, veranda and steps in this amount.
With the current market for replacement caravans and lodges, the costs are increasing almost every month, so the sum you insured for six months ago might not be enough now. Compass offers an under-insurance guarantee to protect against these rising costs so that if you insure for the right amount at the point your policy is taken out (or renews), Compass won’t penalise you in the event of a claim.

2 You need a tailored product. A park home isn’t a holiday caravan and vice versa; nor are they bricks-and-mortar houses so make sure you don’t insure on the wrong type of product.

3 Resist the temptation to save a few pounds. This could cost thousands in the long run, if you have a claim. Under-insurance affects each and every claim you make and when you add up the cost those pounds saved won’t be worth it.

4 The same applies when choosing new-for-old or market value. Market value insurance is the right thing for some and, on average, will mean you pay a cheaper premium. However, it also means every claim will have an allowance made for wear and tear. In real terms, that means that most claims will be reduced and you might not get the amount you thought you would, or that you need to replace the damage.

5 Beware when comparing prices, especially online. Not all insurance products are the same and some have restrictions or conditions that could impact you in the event of a claim.


Info point
Compass is a specialist provider of holiday caravan and residential park home insurance. The company’s experience in the park industry spans more than 40 years. Its knowledgeable and friendly team are based in the historic city of Gloucester, with some of longest-serving team members in the business.

To insure your holiday caravan or lodge, park home, motorhome or touring caravan, look no further than Compass! To find out more about Compass, or to get a quote and buy your policy online, please visit

Read more in the July 2022 issue of Park Home & Holiday Caravan