What is “Insuring to Value” and why is it important for my buildings?

With rising costs for construction and labour, many older buildings are now underinsured. Insuring to value means setting your limits at the actual current cost to rebuild. To avoid a “co-insurance” penalty during a claim, most insurers require that you insure at least 80% of the property’s replacement cost or actual cash value. For best protection, we recommend insuring to 100%.

How do deductibles work if multiple items are damaged at once?

Your deductible can vary by peril, for example, $500 for a barn but $1,000 for equipment. However, if a single occurrence causes loss to more than one item insured with the same company, only one deductible usually applies, the highest single deductible of those affected.

Are there specific rules for heating systems in farm buildings?

Yes, heating is a major risk factor. To be eligible for standard coverage, solid fuel appliances (like wood stoves) must typically be WETT certified within the last 10 years.

What is the difference between Scheduled and Blanket coverage?

Scheduled Items: High-value machinery must be specifically listed by year, make, and serial number.

Blanket Limits: This provides a single limit for a category of smaller items, like portable tools or miscellaneous equipment. It is critical to review these lists annually so that new equipment isn’t left without coverage.

Does my policy cover “Loss of Use” if my machinery breaks down?

Optional Loss of Use coverage helps pay the cost of renting replacement machinery if your insured equipment becomes inoperable due to a covered peril. This coverage is unique because it often applies “per item” and typically does not have a deductible.

Why do I need Farm Liability if I have a small acreage?

Standard homeowners’ insurance doesn’t cover agricultural risks. If you rent out land, harvest hay, or keep livestock (even for personal use), you have a “farm exposure”. Farm liability protects you against specialized risks, like livestock escaping onto a road or moving a combine on public land.

What should I do immediately after my crops are damaged?

The first step is submitting a written “Notice of Loss” within 72 hours of the event. Crop damage notices cannot be accepted by phone. While waiting for an adjuster, document the damage with clear, dated photos from multiple angles across the affected fields.