Exclusionary Vs. Inclusionary Coverage

Exclusionary Vs. Inclusionary Coverage
  • Post published:January 21, 2020
  • Post category:RV Warranty

Not all RV extended warranties are created equal. When comparing companies and plans, expect to see differences in cost, deductible, term length, benefits, and covered items.

Plans also differ in how the coverage is structured. There are two main types of coverage: inclusionary and exclusionary. The key distinction between the two types is how they determine which issues are covered and which aren’t. Most companies offer both types of plans, so RV owners should be aware of which type of coverage they are purchasing.

Inclusionary

Inclusionary plans are generally less expensive, and their coverage is less extensive. Also called listed item, listed component, and comprehensive plans, these policies explicitly state which items on the RV are covered. For example, a policy will list which kitchen items are covered, such as refrigerator, microwave, and burner. 

Anything not listed is not covered, meaning that the RV owner must cover repair costs for those items if they malfunction. Policies also list circumstances that exclude items from coverage. For example, damage from accidents or weather are not covered by any extended warranty.

Exclusionary

Exclusionary plans do the opposite—they list only the items and issues which are not covered. These are premium plans and are designed to cover a wider range of items than inclusionary plans. The price difference varies from plan to plan and from company to company.

The exclusions are essentially a list of conditions that must be met in order for issues to be covered. For example, coverage is intended to assist with the cost of malfunctions, not maintenance, so maintenance issues (such as an oil change) aren’t covered, and issues caused by lack of maintenance similarly aren’t covered. 

Another example: issues cannot be caused by physical damage resulting from a wreck, weather, or other accidents. These issues are often covered by insurance.

Which Is Better?

The answer will vary from case to case. Here are a few questions to consider:

  • What is my budget?
  • How much time will I spend in my RV?
  • For how many years will I use this RV?
  • What level of coverage gives me sufficient peace of mind?

While inclusionary plans are less expensive, they cover less, and exclusionary plans are easier for most RV owners to understand. Once a person knows which issues are not covered by their plan, they can rest easy knowing that anything not on that list will be covered.

Both types of plans can save RV owners money, and factors such as deductible, covered items, and limits of liability (the maximum amounts companies will pay for certain issues) are just as important and coverage type.