What insurance a motorhome needs before you rent it out

If you own a motorhome and are thinking about renting it out, there's one question worth settling before your first booking: does your current insurance actually cover rentals, or only private use of the vehicle?

From an insurer's point of view, these are two different situations, and the distinction determines whether or not you're covered in different scenarios.

The difference between private insurance and rental insurance

Most motorhome policies are taken out with private use in mind — the owner as the regular driver, and perhaps an authorised family member. When that same vehicle is handed over to third parties in exchange for payment, the risk the insurer takes on changes, and many general terms reflect this with a specific exclusion.

It's common for policies to expressly exclude misappropriation — the vehicle not being returned — while it's being rented out, unless the policy specifically covers that scenario. In practice, this means a private insurance policy might cover damage, fire, or third-party liability perfectly well, but offer no protection at all if a client fails to return the motorhome, simply because it was never taken out as rental insurance.

That's why, before listing your motorhome or confirming your first booking, it's worth checking exactly what your policy says on this.

What insurers typically require to cover rentals

When a policy does cover rentals, misappropriation cover doesn't usually kick in automatically — it typically depends on several conditions being met at once.

A written rental agreement, with the renter's details, dates, and handover conditions. A verbal agreement or one made over text messages usually isn't enough.

A deposit held for the duration of the rental.

Verification of the renter's identity, usually requiring payment to be made through a method that allows the account holder to be identified and located.

A tracking device fitted in the vehicle. This requirement surprises a lot of owners: in many rental-focused policies, it's essential for misappropriation cover to be valid. Without it, cover can become void even if every other condition is met.

Not every policy requires all four points in exactly the same way, but in practice, this combination — contract, deposit, identification, and tracking — is the standard that separates insurance built for rentals from insurance that isn't.

The excess isn't always a fixed figure

The excess is the portion of the damage the owner covers before the insurer pays the rest, and it's worth reviewing closely when comparing policies — the amount often varies depending on where the vehicle is repaired. Some insurers apply a lower excess if repairs are done at a garage in their approved network, and a higher one if you choose an independent garage. It's a detail that's rarely explained upfront, and it can make a real difference to the actual cost of a claim.

Glass breakage: cover with its own rules

Glass breakage — windscreen, windows, sunroof — usually appears as a separate guarantee within the policy, and it has its own small print too. Repairs often have to be carried out at garages within a specific network approved by the insurer, with no option to choose freely. Getting it repaired independently outside that network can void the cover.

Roadside assistance: almost never included by default

One of the most common misunderstandings among first-time motorhome rental owners is assuming that the vehicle's insurance already includes roadside assistance. It's usually a separate cover, and one you'll want to arrange explicitly.

Good assistance cover can make a real difference during a rental. It typically includes:

• An on-site repair attempt before calling a tow truck
• Towing the vehicle to a garage
• Sending spare parts if they're not available where the breakdown happened
• A professional replacement driver if the driver falls ill or has an accident that stops them continuing to drive
• Replacement of the driver by a professional if the driver suffers an illness or accident that prevents them from continuing to drive

This last benefit isn't widely known, but it solves a scenario that worries a fair few owners... the driver can't continue the trip and no one else in the vehicle has a licence.

What documentation does the insurer usually ask for?

To issue a policy suited to rentals, insurers typically ask for:

• The owner's ID or tax number
• The vehicle's technical specification sheet
• The vehicle's value
• The registration document with the use expressly declared as "rental without driver"
• The chosen coverage and start date

The registration document deserves a special mention: it needs to reflect the vehicle's actual use. If it states private use while the vehicle is being rented out in practice, that alone can be reason enough for the insurer to reject a claim when it matters.

How we handle this at LSR365

Every owner decides how to insure their motorhome, and that includes keeping whatever policy they already have. What we do recommend, based on our experience managing both our own and third-party motorhomes at LSR365, is checking that the policy covers these points — specific rental cover, misappropriation with tracking, a contract, and a deposit — before you start taking bookings.

Reviewing these points before your first rental usually helps avoid the most costly problems when a claim comes up.

If you need guidance, we can help you assess whether your policy is truly ready for rentals at LSR365. And if you're thinking about no longer handling all this yourself, you can see here why owners trust their motorhomes to LSR365.