Campground and RV Park Coverage Gaps New Owners Find

Many of the surprises sit in the things a park is mostly made of: roads, buried water lines, trees and docks, which a standard property form can exclude or sharply limit. The rest sit between policies, such as moving a guest's trailer or refilling propane. This guide is for buyers who already have the core policies. The core program is covered in insurance after you buy a campground or RV park.

Which parts of the park might your property policy skip?

Many parks hold more value in roads, buried lines and docks than in buildings, and a standard property form can leave those out. The widely used Insurance Services Office (ISO) form, in its October 2012 edition, lists several as "property not covered." Newer editions and other carriers differ, so treat this table as a list of questions about your policy.

Valuation is its own question. In the standard ISO form, covered property is valued at actual cash value (depreciated) unless the declarations show the optional Replacement Cost coverage, and replacement cost is generally paid only once property is repaired or replaced. Some carriers also restrict replacement cost on older buildings unless updates to roofing, electrical and plumbing are documented. Ask which valuation each building has and whether coinsurance or agreed value applies, because limits set years ago can trigger a coinsurance penalty. See actual cash value vs replacement cost.

Which storm and weather losses leave holes?

• Fallen trees. Property coverage for the tree itself is tiny under that form. Liability for a guest hurt by a limb turns on whether the park knew or should have known the tree was dead or split, and the law varies by state. Removing fallen trees and limbs is a separate debris removal question with its own limits and conditions, so ask what it pays when a storm drops trees on roads or sites.
• Flood. Usually excluded from standard commercial property and bought separately. See is flood damage covered by commercial property insurance.
• Named storm wind. Coastal policies can apply a percentage deductible instead of a flat dollar amount. Read the declarations and the named storm endorsement.
• Business income. It replaces lost net income and continuing expenses after a covered physical loss, and it has a waiting period. Civil authority wording, where included, generally needs damage to other property and an order that blocks access, so a boil-water order alone may not qualify.

A hypothetical example. A fire in a wooded loop kills 12 mature trees and scorches the pads under them. Fire is a covered peril for trees on the October 2012 edition, but the Outdoor Property extension tops out at $1,000 for the occurrence, so 12 trees do not each get $250. Whether the gravel pads count depends on how the form and any endorsement treat gravel, paving and land, so the buyer asks before a loss. Replanting may fall largely on the park, while the cabins next door are paid on whatever valuation terms their policy uses. The buyer who asked about the tree limit, the pad wording and the cabins' valuation before the storm knows the gap in advance. Other carriers and endorsements would change the result.

The review guides on commercial property and business income cover how to read each form.

Which guest-facing activities fall between policies?

• Spotting and storing guest RVs. If staff move a guest's trailer with a park truck and strike another RV, the other RV's damage is usually a commercial auto liability question, provided the truck is a covered auto. The gap is the guest's own trailer, which is in your care, custody or control. General liability and auto liability forms both commonly exclude property in the insured's care, custody or control, and garagekeepers legal liability or a similar bailee form is aimed at it. See care, custody and control.
• Golf carts and utility vehicles. Whether a cart counts as an auto, mobile equipment or inland marine property depends on policy definitions and how it is licensed and used. See mobile equipment vs auto.
• Propane, fuel and septic. General liability generally excludes most pollution. A refill area, fuel tanks, a dump station or pool chemicals call for a pollution coverage question.
• Events and alcohol. A clubhouse wedding that serves wine can create host liquor exposure even if the park did not pour it.
• Pools and playgrounds. Serious injuries can exceed a primary liability limit, so ask what the umbrella sits over and whether pool exposure is listed.
• Reservations and card data. A ransomware lockout of online booking on a holiday weekend is a cyber question and a business income question, and business income is usually tied to physical loss. Ask whether cyber coverage includes lost income from an outage, and read the cyber review.

What gaps does no insurance policy fill?

• Water system violations. A park with its own well is usually a public water system under federal rules. Fines and compliance costs are generally not what a standard policy pays. See contracts, licenses and bonds for a campground or RV park.
• Work camper arrangements. Trading a site for work raises wage and hour questions and a question of who counts as an employee for workers' comp. A policy does not settle those. See workers' comp and payroll for a campground or RV park.
• Waivers and signs. They help, but they do not close a coverage gap. State law decides what a waiver can release. Missouri, for example, has a campground statute whose protection depends on required warning notices (see the contracts guide), and other states differ, so ask counsel what applies to your park.

How do you check your own policies in one afternoon?

Ask your broker for the full policy, not just the declarations page, and bring these questions:

1. Which edition of the property form is this, and what do its "property not covered" list and tree limit say about roads, pipes, docks and trees?
2. Which valuation applies to each building, and does coinsurance apply?
3. Is flood covered, and what are the named storm terms and deductible?
4. How is each cart, utility vehicle and mower listed?
5. Do we have garagekeepers, liquor and pollution coverage, and if not, why not?
6. What do the business income worksheet and waiting period say about our peak season?
7. What ordinance or law coverage applies if we must rebuild to current code?

The broader checklist is in coverage gaps every new owner finds, and exclusions that quietly kill coverage explains how to read wording.

Keep reading

• Just Bought a Campground or RV Park? What Insurance Do You Need?
• What Drives Insurance Cost for a Campground or RV Park?
• Contracts, Licenses and Bonds for a Campground or RV Park
• 15 Coverage Gaps New Owners Find in Owner-Run Businesses
• Insurance Exclusions That Quietly Kill Coverage
• All guides for new business owners

Frequently asked questions

Does my property policy cover the roads and underground water lines at my campground?

Not necessarily. The standard ISO building and personal property form, in its October 2012 edition, lists roadways, walks and other paved surfaces and underground pipes among property not covered. Other editions, carriers and endorsements differ, so read the form and ask whether an endorsement adds them.

Is a tree falling on a guest's tent covered?

A guest's injury or tent damage from a fallen limb is usually a liability claim, and whether it is covered depends on the policy and the facts. Liability often turns on whether the park knew or should have known the tree was dead or split, so keep a dated inspection log. The property policy covers the tree itself only for limited perils and small limits.

Will business income insurance pay if my well fails a test and I close sites?

Not automatically. Business income coverage is generally tied to direct physical loss from a covered cause. A contamination event or a government order may be handled differently, so ask your broker and read the policy wording before you rely on it.

Is a golf cart an auto for insurance purposes?

It depends on the policy definitions and on how the cart is licensed and used. Some parks schedule carts on an equipment form and some on the auto policy. Ask your broker where each cart is listed and what liability applies.

References

• Insurance Services Office: Building and Personal Property Coverage Form, CP 00 10 10 12
• IRMI: The Auto Exclusion in the CGL Policy (September 1, 2022)
• Rough Notes: Remember Property Not Covered and How to Fix It
• eCFR: 40 CFR 141.2, public water system definitions

This article is general information, not legal, tax or financial advice, and not a coverage determination. Coverage depends on the actual policy wording, carrier underwriting, your purchase agreement and your contracts. Ask your attorney and accountant about deal and legal questions.