In the past, caravans have been particularly prone to internal damage, specifically from fire. This not only lost cost owners money, it sometimes meant loss of life. Thankfully, safety levels for caravans in the modern era are extremely safe, as long as common sense has been applied to the storing and usage of energy sources, such as gas. Just having such things on the property however heightens the risk of fire, particularly during cooking, so it makes sense to have insurance in place for this situation.
Caravans these days are hardy beasts that can withstand enormous amounts of punishment compared to their predecessors. This does not mean that extensive damage cannot occur, however, especially on the crowded areas of camp sites or car parks. The more expensive the caravan, the more expensive the damage can be, with some accidents leading to thousands of pounds worth of damage. Taking out the correct insurance to cover for these eventualities is therefore highly recommended.