Insuring an RV for both vacation and work?

[HoundyBoy]

I posted a similar question in the workamping forum, before realizing that "workamping" is more geared to getting a free site in exchange for volunteer work vs. actually having a small business and using your RV for it.

I am a silversmith, and my intention is to have a small studio in my RV where I make jewelry, as well as driving it on sales trips throughout the country. I plan to claim the purchase price as a tax deduction, as well as mileage, further studio conversion, etc.

I am having a really hard time finding insurance coverage for this intended purpose. Do most folks who do something similar just insure as a personal vehicle? My tax advisor says it's fine to do this for IRS purposes. However, I am concerned that if there is ever an insurance claim related to the on-board studio that I will be denied coverage/liability.

Any ideas and suggestions are appreciated - originally was hoping to add the RV to my exisiting auto policy, but have already been denied by Progressive and Farmers due to the onboard studio.

 

[Stephen S.]

Insurance companies want to insure either a 100% personal vehicle or a 100% commercial vehicle.

You know food trucks, gutter installers, etc. can get insurance for their vehicles that they work in.

The problem is the insurance companies have no monetary incentive to insure dual purpose vehicles. The headache of figuring out which part of the policy would apply to any claims is more than they want to deal with.

Similarly, most insurance companies for homeowners policies on houses don't like to cover a business under the same roof.

You have to realize, insurance companies are like casinos. They are in business to make money, not pay out. If they don't like the odds either the price to play goes way up, or they don't want to play at all.

 

[HoundyBoy]

Thanks for the reply.

I finally have coverage! Do want to note for anyone who may be interested, that I did find a way to insure it under a personal vehicle policy with "Incidental Business Use" through Progressive. More $ than I wanted to spend, but c'est la vie, I'm well covered.

 

[Stephen S.]

Thanks for the reply.

I finally have coverage! Do want to note for anyone who may be interested, that I did find a way to insure it under a personal vehicle policy with "Incidental Business Use" through Progressive. More $ than I wanted to spend, but c'est la vie, I'm well covered.

There ya go! You found a house that was willing to take the bet. Just costs more.

"Incidental Business Use" <-- I'll have to remember that description.

 

[Rancher Will]

As a rancher and Truck business owner, my wife and I use our RV for both business and pleasure nearly every month of the year. some trips are strictly for business and some for pleasure. For a number of years we have had Good Sam, now National General Insurance.

Years ago I changed from State Farm Insurance for our RV's for the reason that Good Sam Insurance covers not only the RV but all contents, etc., even for business trips. Most auto policies only cover the basic RV, the same as a motor vehicle,  but not all contents, appliances, supplies, etc., that are in the RV,  that we have with us on business trips and also pleasure trips, as does National General-Good Sam Insurance.

I suggest that any RV owner check with their Insurance Agent to learn exactly what is and is not insured inside  the RV since we found differences between companies.

 

[HoundyBoy]

Thanks for this, Rancher Will. Can you clarify - it just insures the appliances and interior features that are built in to the RV, correct? (Fridge, generator, etc. and not business supplies or inventory you are traveling with?) My policy covers RV appliances and accessories, but agent told me I would need separate business insurance to cover my sales inventory or portable jewelry studio equipment onboard, which frankly is more valuable than the RV itself - is this the kind of thing Good Sam would cover as part of the RV policy?

 

[Gary RV_Wizard]

I am a silversmith, and my intention is to have a small studio in my RV where I make jewelry, as well as driving it on sales trips throughout the country. I plan to claim the purchase price as a tax deduction, as well as mileage, further studio conversion, etc.

Get professional tax advisor to help. Taking a deduction for mixed use property (used as your home and pleasure travel vehicle as well as place of business) is complex. As I understand the rules, the IRS basically only accepts dedicated business use as a deductible expense. The workshop would be a deductible expense, but you probably cannot pro rate other areas as half business and half personal. Same rules as for a fixed home with a dedicated office or shop area. They have to be totally separate uses. Mileage is an acceptable basis for pro rating actual travel expenses, but probably not other things.

 

[HoundyBoy]

Thanks, I have been advised by my CPA throughout this process. Going to keep careful track of business vs. pleasure mileage, as well as only being able to claim expenses for the studio portion of the floor plan.