RV Parks • Campgrounds • Commercial Insurance

Buying an RV Park or Campground?10 Insurance Questions to Ask Before You Close

Published by Bancorp Insurance, Powered by OneDigital

1. Are the property values high enough to rebuild after a major loss?

Start with a detailed inventory of everything included in the purchase. Depending on the property, that may include:

• An office, store, clubhouse, bathhouses, laundry buildings, and maintenance shops
• Cabins, yurts, glamping tents, decks, and covered gathering areas
• Signs, fencing, docks, storage buildings, and site improvements
• Furniture, appliances, computers, tools, mowers, and maintenance equipment
• Wells, septic systems, pumps, electrical pedestals, and other utility infrastructure

The purchase price, tax-assessed value, and cost to rebuild are not the same. Ask whether the proposed property coverage uses replacement cost or actual cash value, how each building is valued, and whether debris removal, ordinance or law, outdoor property, utility infrastructure, and equipment breakdown are addressed.

Also determine whether the seller’s building schedule is current. An undocumented structure or recently added improvement can be missed when coverage is written.

2. Does general liability coverage reflect how guests actually use the property?

General liability insurance may respond when the business is accused of causing a guest’s bodily injury or property damage. At a campground, the exposure extends beyond a typical slip-and-fall claim.

Ask your advisor to evaluate:

• Roads, walkways, stairs, decks, and campsites
• Fire rings, grills, propane use, and communal kitchens
• Lakes, rivers, docks, boat launches, and trails
• Pet areas and rules
• Security, lighting, signage, and emergency procedures
• Guest activities and equipment rentals

A policy written for a simple overnight campground may not fit a destination resort with water access, rentals, guided recreation, or group activities. Make sure every activity is disclosed and ask whether any exclusions, sublimits, or warranties could restrict coverage.

3. How long could the business survive a covered closure?

Commercial property insurance helps repair covered physical damage. It does not automatically replace all the income lost while the business is closed or operating at reduced capacity.

Business income and extra expense coverage, sometimes called business interruption coverage, may help after a covered loss. Before choosing a limit, review:

• Monthly and seasonal revenue
• Advance deposits and reservation patterns
• Payroll and ongoing debt obligations
• The time needed for permits, cleanup, construction, and utility restoration
• The cost of temporary office space, generators, or other measures that could keep part of the property open

For a seasonal campground, the timing of a loss matters. A closure during peak summer months can produce a very different financial impact than a closure in the off-season. Ask how the policy determines lost income, how long benefits may continue, and whether there is a waiting period.

Remember that business income coverage generally requires a covered cause of physical loss under the policy. A road closure, evacuation order, smoke conditions, utility failure, or nearby wildfire may not trigger coverage unless the policy’s specific requirements are met.

4. Are cabins, yurts, and glamping accommodations fully disclosed?

Cabins and glamping units create a different exposure than RV hookups or tent sites. Tell the insurer exactly what guests sleep in and how each unit is built, heated, cooled, and maintained.

An underwriter may ask about:

• Permanent versus seasonal structures
• Wood stoves, fireplaces, space heaters, and propane appliances
• Electrical wiring and cooking facilities
• Smoke and carbon monoxide alarms
• Decks, stairs, railings, and accessibility
• Linens, furnishings, and guest property
• Cleaning and inspection procedures

Do not assume that a cabin, yurt, tiny home, safari tent, or park model is automatically included because it is located on the insured premises. Ask how each unit is classified and shown on the policy.

5. What safety controls are in place for pools, playgrounds, and other recreation?

Pools and playgrounds can be valuable amenities, but they also increase the chance of serious injuries. Review fencing, gates, depth markings, rescue equipment, rules, lighting, water testing, inspection logs, and supervision practices for pools or spas.

The CDC’s swimming-safety guidance explains that recreational water can present both illness and injury risks. For playgrounds, the U.S. Consumer Product Safety Commission reports that more than 200,000 children visit emergency rooms each year for playground-equipment-related injuries and notes that falls are the most common cause. Its Public Playground Safety Checklist is a useful starting point for reviewing surfacing, maintenance, entrapment hazards, and equipment condition.

Ask whether the carrier requires documented inspections or specific protective measures. If the property also has a lake, dock, splash pad, jumping pillow, ropes course, or sports court, include those features in the review.

6. Who may operate golf carts, ATVs, tractors, and utility vehicles?

Golf carts and utility vehicles are often used to escort guests, transport supplies, collect trash, and maintain the grounds. The insurance solution may depend on the vehicle, where it travels, who operates it, and whether it transports guests.

Before closing, create a vehicle and equipment list showing:

• Year, make, model, serial number, and ownership
• Primary use and operating area
• Whether the vehicle leaves the premises or crosses public roads
• Whether employees, guests, volunteers, or contractors may drive it
• Driver-age rules and training requirements
• Passenger capacity and installed safety equipment

Ask whether each unit belongs under commercial auto, mobile equipment, inland marine, or another form of coverage. If guests rent golf carts, bicycles, kayaks, or other equipment, discuss rental agreements and liability controls as well.

7. Will employees and seasonal workers be properly covered?

Campgrounds often use a mix of managers, front-desk staff, maintenance employees, cleaners, food-service workers, seasonal help, volunteers, and independent contractors. Those labels alone do not determine how a worker will be treated under workers’ compensation law.

If the property is in Oregon, the state says almost all employers must carry workers’ compensation insurance and that most workers are considered subject workers unless an exemption applies. Review the Oregon Workers’ Compensation Division guidance and speak with an advisor about your specific staffing model.

Before closing, ask for:

• Current payroll by job duty and state
• Workers’ compensation loss runs
• A list of seasonal, temporary, and remote workers
• Details about volunteers and work-camping arrangements
• Certificates of insurance from contractors
• Written safety and training procedures

Be especially careful with work campers who receive a site, utilities, or other benefits in exchange for labor. The arrangement should be reviewed for insurance, employment, wage-and-hour, and tax implications by the appropriate professionals.

8. Is the campground insurable for wildfire—and on what terms?

Wildfire deserves early attention, particularly for parks in forested, rural, or wildland-urban interface areas. Underwriters may evaluate vegetation, slope, roof and siding materials, access roads, water supply, hydrants, distance to responding fire services, evacuation planning, and prior losses.

Ask these questions before you become obligated to close:

• Will admitted-market coverage be available, or will a specialty market be needed?
• Are wildfire, smoke, or brush-fire losses excluded or subject to a separate deductible?
• Are all cabins, outbuildings, signs, fences, and outdoor property covered?
• Does the park have adequate defensible space and emergency access?
• Is there a written evacuation and guest-communication plan?
• Could a wildfire mitigation inspection improve insurability?

Federal fire guidance recognizes vegetation management, fire-resistant landscaping, and fire-safe construction as important parts of reducing wildfire risk. Mitigation does not guarantee that coverage will be available, but it can protect the property and may strengthen the submission presented to insurers.

9. How do long-term residents change the exposure?

An RV park with nightly vacation guests is different from a property where people stay for several months, live year-round, receive mail, build decks, add sheds, or store extensive personal property.

Ask the seller for a current occupancy report and copies of all rental or space agreements. Determine:

• How many sites are transient, seasonal, monthly, or long-term
• Whether any units are owned or rented by the park
• Whether residents have made permanent additions
• Who is responsible for resident-owned property and improvements
• Whether residents must carry their own liability or property coverage
• How vacancies, evictions, abandoned property, and background checks are handled

Long-term occupancy can affect underwriting, policy eligibility, valuation, and legal obligations. Have a qualified attorney review leases and local landlord-tenant requirements; insurance does not replace sound contracts or compliance advice.

10. Are events, food service, alcohol, and every other amenity included?

The last question is intentionally broad: What else happens at the property? Revenue-generating extras can introduce risks that are easy to miss in a basic campground application.

Examples include:

• Weddings, concerts, rallies, festivals, and group retreats
• A café, camp store, commercial kitchen, food truck, or catering
• Beer, wine, or liquor sales
• Propane filling, firewood sales, and equipment rentals
• Guided hikes, fishing, boating, horseback riding, or shuttle service
• Day-use visitors and outside vendors
• Fireworks, bonfires, or holiday activities

Ask whether liquor liability, product liability, special-event coverage, commercial auto, cyber coverage, equipment coverage, or higher umbrella limits are appropriate. Require outside vendors to provide contracts and certificates of insurance when advised, but remember that a certificate alone does not transfer every risk or guarantee coverage.

Common Insurance Mistakes RV Park Buyers Make

• Waiting until the closing deadline: Complex or wildfire-exposed properties may require more underwriting time.
• Quoting from an incomplete property schedule: Missing cabins, equipment, utilities, or amenities can lead to gaps.
• Using the purchase price as the insurance value: Rebuilding cost is a separate calculation.
• Assuming every closure is covered: Business income coverage depends on the policy language and cause of loss.
• Keeping undisclosed plans until after closing: Adding events, alcohol, rentals, glamping units, or long-term tenants may materially change eligibility.
• Focusing only on price: Deductibles, exclusions, valuation, limits, and carrier requirements can matter far more after a loss.

Coverage varies by insurer, policy, location, and individual risk. This article is for general educational purposes and is not legal, tax, employment, or coverage advice. Review all policy terms, conditions, limits, and exclusions with a licensed insurance professional.