RV · Updated October 2026
Actual cash value. The policy pays what the RV was worth just before the loss, after depreciation. On a two-year-old motorhome, that can be far less than you paid, and less than you owe.
Agreed value. You and the insurer agree on a value when the policy is written. That is what is paid on a total loss. More common on older or specialty units.
Total loss replacement. Offered by some companies on newer RVs, this replaces the RV with a new one of similar make and model if it is totaled within a certain period, often the first few model years. It may also cover purchase price in some cases. Terms vary.
RVs depreciate quickly in the first years. If you financed most of the purchase, an actual cash value payout can leave you owing the lender money with no RV. Total loss replacement or gap-style coverage closes that gap.
Total loss replacement is usually limited to:
If you buy a new RV, ask about it at purchase. You may not be able to add it later.
For partial losses, some policies pay replacement cost on repairs and others apply depreciation to certain parts. Ask how roofs, tires, awnings and appliances are handled.
Keep the purchase agreement, window sticker and receipts for upgrades. They support the value if you ever have a claim.
Many RV loans run long terms with small down payments, which means owing more than the RV is worth for years. If your RV policy pays actual cash value and you don't have total loss replacement, consider gap coverage, whether through the lender, the dealer or your insurer. The same idea applies as with cars: see gap insurance explained.
Solar systems, upgraded batteries and inverters, satellite systems, upgraded suspension and interior remodels add value an insurer may not know about. List them when you buy the policy or after you install them, and keep receipts. Without documentation, a total loss settlement may not reflect them.
If you buy a used RV, total loss replacement may not be available. Agreed value can be the better option for well-kept older units, especially classic or specialty RVs where market value is hard to establish.
Coverage that replaces a newer RV with a new similar one if it is totaled within a set period, subject to the policy's terms.
On a financed new RV, it may leave you owing money after a total loss.
Often only on newer units and sometimes only at purchase. Ask when you buy.
Often for older or specialty units where market value is hard to pin down.
Questions about your own situation? Call 417.206.3733 or send us your current policy. We are licensed in Missouri, Kansas and Oklahoma, and you can buy by phone without coming in.
Or send your details and an agent will call you back with options from the companies we work with.