Insurance - Storage Restrictions

[BHEMOTH]

Our broker, RV Direct Insurance has verbally advised us that our insurer, Aviva (Elite Insurance) has unilaterally placed unwritten restrictions on RV storage. If our coach is stored for longer than 30 days our deductible will be upped to the next level (currently $1000.00 and will go up to $2500.00), if we plan to store the coach for 90 consecutive days, our premium will increase and greater than 90 days our insurance could be cancelled.

When asked where these restrictions can be found in our policy we were advised they are not written but that by instruction from Aviva our broker is obligated to advise us verbally. Our broker went on to advise that Clause 12 of the Alberta Standard Auto Policy "Material Change in Risk" allows the insurer to invoke such restrictions and that the insurer may do so without amending the insured's policy or advising the insured. The clause in question seems more concerned with a change of ownership, further, the Alberta Standard Insurance policy states that the vehicle is insured, provided that it is operated or stored in Canada or the United States or is being transported between the two countries.

We referred the matter to our own legal counsel and were told that the position advised by Aviva was without substance and unenforcible.

Our broker advised that every Canadian insurer has similar restrictions.

Has anyone out there encountered a similar situation?

[RoyM]

I lived in Alberta for many years and never heard of such a thing. We parked our fiver on our property last winter and bought storage insurance from ICBC. We paid $30.00, the minimum premium for any coverage, when we renewed the plate this spring we got a $21.00 refund. WOW, that is cheap coverage.

[Dave and Jaime]

Quote:

Originally Posted by BHEMOTH Our broker, RV Direct Insurance has verbally advised us that our insurer, Aviva (Elite Insurance) has unilaterally placed unwritten restrictions on RV storage. If our coach is stored for longer than 30 days our deductible will be upped to the next level (currently $1000.00 and will go up to $2500.00), if we plan to store the coach for 90 consecutive days, our premium will increase and greater than 90 days our insurance could be cancelled. When asked where these restrictions can be found in our policy we were advised they are not written but that by instruction from Aviva our broker is obligated to advise us verbally. Our broker went on to advise that Clause 12 of the Alberta Standard Auto Policy "Material Change in Risk" allows the insurer to invoke such restrictions and that the insurer may do so without amending the insured's policy or advising the insured. The clause in question seems more concerned with a change of ownership, further, the Alberta Standard Insurance policy states that the vehicle is insured, provided that it is operated or stored in Canada or the United States or is being transported between the two countries. We referred the matter to our own legal counsel and were told that the position advised by Aviva was without substance and unenforcible. Our broker advised that every Canadian insurer has similar restrictions. Has anyone out there encountered a similar situation?

I have not personally encountered this but the real question is whether, in applying for the insurance, you were asked in some application about whether the vehicle will be stored, and where, and how long. If the rates/underwriting were done on the basis of information you supplied, and that information is inaccurate, the clause mentioned might properly be invoked.

For auto insurance, for example, the underwriting criteria include the locaton and the primary driver. If you give one zip code/address at time of application and rate setting, and there aren't any teenage drivers, you might get the lowest premium. But if you move the vehicle to a new, higher risk zip code and you allow a teenager to drive it, you have materially changed the risk without disclosing to the insurer. So what the clause 12 is attempting to is say, "if you had told us about this, we would have charged you more. But you didn't, so we will instead reduce the coverage (to reflect how much insurance the premium you actually paid us would have bought)." From their perspective, this is fair and logical. In my hypothetical, if I had reported to the insurance company a new, high risk location for the car and a new high risk driver, I could keep the same coverage only by paying a new, higher premium. If I don't disclose, to avoid the higher premium, then the coverage should be reduced (ie., higher deductable) to reflect the risk and provide the coverage that the same premium dollars would have purchased, if the insurer knew of the undisclosed risks. Probably not what you wanted to hear but that's my viewpoint.

[TXiceman]

Sounds like a slime bag bunch. I'd ditch them and look fro another insurance company.

ken

[BHEMOTH]

When we bought the coach we went to the insurer recommended by the dealer. The insurer asked for make, model, year and value, at no time was the matter of storage introduced and as it is our first coach we did not know enough to ask.

The insurer has now come back and advised that its major concern is storage of greater than 30 days in the US and advises that there are varing restrictions and associated costs depending on the insurer. That said, we have requested the insurer advise as to any extra cost that would resolve the issue but have had no response. As the matter is seemingly complicated due to the number of factors involved it seems to me that each insurer should advise its insured in writing at the time the policy is issued so that there is no room for misunderstanding.

Rarely, whether is Canada or in the US is our coach not moved out of storage even if it is just to excersise the engine and generator. If the coach is wintering in the US we try to take it down early enough to avoid ice and snow and return it to Canada as soon as the threat of winter driving conditions has dissipated. Travel during the winter months through Alberta, Montana, Idaho and Utah can prove treacherous in a single axle 40" coach. By travelling on dry roads, we thought we were reducing the chance of a claim, however, our insurer seems bent on placing our coach and our personal safety at risk.

[jjr4]

We are in the process of renewing our insurance and have not had this come up at all. Our coach is in storage for months at a time in Ontario. Is this new clause specific to Alberta?
Jeff

[BHEMOTH]

Insurance companies appear to use "Territory" and "Material Change In Risk" found in provincial policies as a catch all when required to pay claims. When asked how far from our home address the coach could be stored and for how many consecutive days, our broker restricted his reply to storage in the US.

Apparently we cannot store our coach in the US for longer than 30 consecutive days without additional premiums and even then, at the discretion of the insurer Aviva (Elite).

When asked to provide something in writing by the insurer to clearly state such limitations or restrictions our broker replied by advising that insurance companies are not required to do so. Any additional premium that might be called for has not been provided by our broker nor have limitations of coverage been provided, only alluded to. As we intend to move the coach south for the winter months in October, we have been canvassing other insurers looking for one that will allow US storage and more importantly, one that will identify any limitations of coverage and any restrictions in an addendum to the policy.