Alps, in add-on insurance products, legal expenses, and claims solutions for intermediaries, has announced the launch of a Guaranteed Asset Protection (GAP) insurance product specifically for motorhomes.
Alps is bringing a comprehensive product to market underwritten by Financial & Legal – one of a select group of insurers currently authorised by the FCA to underwrite GAP insurance. According to market reports, 90% of dealerships don’t sell GAP insurance now following the FCA review, making motorhome GAP hard to come by on the forecourt. This has left a sizable population of motorhome owners without any cover.
The motorhome GAP product is designed to deliver enhanced financial protection for motorhome owners in the event of a total loss (accident, theft, fire, or flood). It covers the shortfall between the insurer settlement and the original price paid for the vehicle, or outstanding finance balance.
The product covers motorhomes valued up to a maximum of £75,000, up to 10 years old, and with a maximum weight of 3.5 tonnes. Importantly, brokers can sell the product up to 180 days after the vehicle purchase, providing those customers who have already purchased their vehicles in that period the ability to secure cover. The policy also offers a pro-rata cancellation policy refund, so that customers who cancel can claim a refund on premiums if they haven’t claimed on the policy. Together with fast technology and data-driven claims handling, these unique features highlight Alps’s strict adherence to fair-value principles and the delivery of improved outcomes for motorhome owners.
Michelle O’Reilly, Managing Director at Alps, commented: “We’re thrilled to launch this new product with Financial & Legal. Motorhome GAP insurance provides vital financial security, as well as peace of mind for owners that their open-road adventures are protected. Motorhomes are not immune from market fluctuations and depreciation; in fact, according to market reports, they lose an average of 20% of their value[1] in their first year alone. It’s therefore important for brokers to fill the gap left by dealerships and deliver the protection owners need to enjoy their valuable investment.
“This is the second GAP product we’ve launched with Financial & Legal. Like us, they’re committed to improving policyholder outcomes and delivering superior customer value. We look forward to extending our relationship further in the future.”
Ian Kember at Financial & Legal, added: “We are delighted to continue to grow our relationship with Alps and together with AMS be among the first to offer this innovative and valuable product to market. We urge brokers to start selling this product again – which offers valuable protection that their clients have been missing. It cancels out the effects of depreciation and provides comprehensive financial and lifestyle protection.”
[1] https://oaktreemotorhomes.co.uk/motorhome-depreciation-rate/