Saga urges those opting for a caravan holiday this year to ensure they are fully protected with caravan insurance before they set off.

Having found that a third of those over 50 intend to take a caravan holiday this year, Saga advises them to check that their caravan insurance offers them adequate cover.

As the credit crunch encroaches on household incomes and limits the amount of money people have to hand in for costly holidays, many Britons are opting to stay in the UK for their holiday this summer.

Caravan sales are up 10 to 15 per cent as more people opt for a domestic holiday. Still, Saga warns those caravanners who assume that their mobile holiday home will be automatically be covered by their home or car insurance policy that this is not the case.

People can end up out of pocket, the over 50s financial services provider highlights, as novice caravanners wrongly think they will be covered for theft and damage by their existing policies and do not require separate caravan insurance.

While car insurance will protect against third-party damagers caused by the caravan, it will not cover any damage to the caravan itself, Saga said.

And it’s not just the caravan at risk without adequate protection, the insurer adds, but its contents. Some items, such as cameras, might be covered by a home insurance policy. Still, other items, once removed from the home, such as laptops, stereos, televisions, and computer game consoles, are unlikely to be protected without caravan insurance.

“It is important that caravan owners fully understand what their insurance policies cover,” said Andrew Goodsell, chief executive of Saga Group. “Separate caravan insurance is vital when using your caravan and ensures that you won’t be left out of pocket even if the holiday takes a turn for the worst.”

© Fair Investment Company Ltd