NM Insurance - Caravan Product Assessment

Storm Damage at a Caravan Park

A customer has insured their caravan and is staying at a holiday park when a sudden storm causes damage to both the awning and the exterior of the caravan. How does the policy respond?

Only items inside the caravan are covered

Only damage that occurs while towing is covered

The policy covers storm damage to the caravan, including the awning and external fixtures, subject to the policy terms and conditions

No cover applies

Theft From a Secured Caravan

A customer leaves their caravan securely locked at a campsite. When they return, a door has been forced open and items inside the caravan have been stolen. How does the NM Insurance policy respond?

Only the damage to the caravan is covered

The policy covers the stolen items and damage, up to $1,000 per item and $5,000 in total, as there is evidence of forced entry

The full replacement value of all items is paid

The claim is not covered because the caravan was unattended

New Caravan Replacement

A customer purchased their caravan new, is the first registered owner, and has maintained continuous cover. If the caravan is a total loss within 3 years of original registration, how will the claim be settled?

Market value

Agreed value shown on the schedule

The caravan will be replaced with a new, equivalent caravan (where available), in line with the policy terms and conditions

The claim is not covered

Demonstrator Caravan

If a customer buys a demonstrator caravan and insures it with NM Insurance, are they eligible for the new caravan replacement benefit?

Yes

No

Only after 12 months

Spoiled Food

A fault in the caravan's internal electrical wiring causes the power to stop working while the customer is staying at a caravan park. The fridge turns off and food is spoiled. What is the maximum amount the NM Insurance policy will pay?

$500

Up to $1,000 for spoiled food

$2,000

The full value of the caravan contents

Temporary Accommodation

A customer is more than 100km from home when a fire damages their caravan, leaving it uninhabitable. What temporary accommodation benefit applies?

$100 per day with no maximum

$200 per day, up to $2,000 in total

$200 per day, up to $2,400 in total

No cover applies

Returning the Caravan Home

While travelling more than 100km from home, a customer becomes suddenly ill and is medically unfit to continue towing their caravan. What is the maximum amount payable to return the caravan home?

$1,000

$2,000

$5,000

Full sum insured

Wear and Tear

A customer notices their caravan window seals have worn out over time, letting water inside and causing damage. Is this covered under the NM Insurance policy?

Yes

No

Sometimes

Mechanical or Electrical Breakdown

A customer's caravan air conditioner stops working due to an internal mechanical or electrical fault. There has been no accident and no external damage. Is this covered under the NM Insurance policy?

Yes

No – mechanical or electrical breakdown is not covered under the policy

Only resulting damage is covered under the policy

Hire-Out of a Caravan

A customer asks if they can rent out their caravan through a platform like Camplify. How does the NM Insurance policy respond?

Always covered

Hire out cover must be selected and shown on the policy schedule, and policy conditions and exclusions still apply

Only contents are covered while it's hired out

Hire out is not allowed

Legal Liability

How much legal liability cover is provided under the NM Insurance policy?

$10 million

$20 million

$30 million

Emergency Pet Cover

While travelling more than 100km from home, a customer's pet is injured and needs emergency veterinary treatment. What is the maximum amount the NM Insurance policy will pay?

$500 (an excess applies)

Up to $1,000 for emergency veterinary treatment under the policy – no excess applies

$2,000 (subject to excess)

Theft from a Soft Annexe

A customer has belongings stolen from their soft annexe. There are no signs of forced entry. Is this covered under the NM Insurance policy?

Yes

No

Sometimes

Transport by a Professional Carrier

A customer arranges for their caravan to be transported interstate by a professional transport company. During transport, the caravan is damaged. Is this covered under the policy?

Yes - damage to the caravan while being transported by road, rail, or sea is covered under the policy

No - the policy only covers damage when the caravan is being towed by the customer

Optional - cover only applies if an additional option is selected

Removal and Storage

After an accident, a customer's caravan cannot be towed and needs to be removed and stored. Are these costs covered under the policy?

Yes

No

Optional

Temporary Cover for a Replacement Caravan

A customer sells their caravan and purchases a replacement caravan but has not yet updated their NM Insurance policy. Is temporary cover provided?

Yes - temporary cover applies for 14 days, limited to the purchase price or the policy sum insured (whichever is lower)

No

Yes - cover automatically applies for 30 days

Tyre and Rim Damage

While travelling, a customer hits a pothole and damages their caravan's tyre and rim. How does the policy respond?

Damage is not covered under the policy

Only the tyre is covered under the policy

Both the tyre and rim are covered up to $500 per claim, with a maximum of $1,000 under the policy, and no excess applies

Cover only applies if the tyres are new

Accident on an Unsealed Road

Does an additional off-road excess apply under the NM Insurance policy if a customer has an accident while travelling on an unsealed road?

Yes

No

Long Term Travel in a Caravan

If a customer is travelling around Australia for leisure, including long-term travel (such as doing a lap), and their caravan is damaged, is it covered under the policy?

Yes - the policy covers damage while travelling within Australia for leisure

May not be covered if travelling long term

Only covered if the customer returns home regularly

Not covered

Business or Work Related Use

A customer is living in their caravan while working away from home and staying on a job site. How does the policy respond?

Covered

It would not be covered under the policy, as the caravan is being used in connection with business or work purposes

Contents only

Partially covered

Loan Balance Assistance

A customer's caravan is declared a total loss. After the claim is settled, there is still an outstanding balance left on their caravan loan. What is the maximum amount the policy will contribute toward this remaining loan balance?

$1,000

$2,500

Up to $5,000

The full remaining loan balance

Change of Storage Address

A customer moves their caravan from their home address and starts storing it at a different location (for example, a friend's property). What must the customer do to ensure their cover continues?

Nothing – cover automatically continues

Notify the insurer of the change in storage location as soon as possible

Cancel the policy and take out a new one

Only update the insurer if they make a claim

LayUp Cover

A customer selects layup cover for their caravan. During this period, the caravan cannot be used for general travel, but it remains covered while stored at the nominated address and may be taken to or from a repairer or dealer for servicing. Is this correct?

True

False

Motor Burnout Cover

A customer's microwave stops working after its motor burns out due to an electrical current while inside the caravan. How does the policy respond?

It wouldn't be covered under the policy

It would be covered as a general contents claim

It would be covered under the motor burnout benefit, as long as the policy conditions are met

It would only be covered if the damage was caused by fire

Street Parking Disclosure

A customer permanently parks their caravan on the street directly outside their home, on the same side of the street. Will the policy extend cover?

Yes, automatically

Yes, provided it is parked outside the home

Yes, provided permanent street parking was disclosed and accepted when the policy was taken out

No, caravans are never covered when street parked

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NM Insurance - Caravan Product Assessment

Caravan Insurance - Training Assessment