Help us to help you protect your assets properly

PROTECTING your farm and everything that goes with it is common sense and making sure that your farm, machinery and livestock are covered is something that all responsible farm owners do. However, according to recent research by Zurich, a staggering 79% of claims made were underinsured.

Yes, it may be tempting to underestimate the true value of your assets, such as buildings, machinery and livestock, to keep premium costs to a minimum. However, the harsh consequences of not being properly covered when a claim is made, for example following storm damage, means you could be running into all sorts of problems.

Many of our members will know from speaking to FUW insurance staff that one of the most common errors when insuring assets such as buildings is using the market value which is often significantly lower than the cost of reinstatement.

There is a danger of not taking all of the hidden costs into account. Would you normally consider the cost of clearing away debris, costly building regulations, professional fees and the ever-increasing difficulty in getting hold of as well as the cost of construction materials?

That’s why when we speak to our insurance staff they always tell us that calculating the correct amount of cover for stock in trade, feedstuffs, plant, machinery and other items is hugely important for a smooth and trouble-free payout when you need to make a claim

The dangers of underestimating these costs as well as not factoring in the additional considerations of larger, specialist or bespoke pieces of equipment can have a huge financial impact when it becomes apparent that these items have been under-insured.

Despite the serious consequences, under-insurance remains a huge concern particularly within the agricultural sector. Our FUW insurance staff are constantly working hard to help you correctly calculate the true cost of insurance for when the worst happens.

So on a final note this week, help us to help you protect your assets properly. Give us a call in your local county office and we’ll make sure you get the right advice for your farm.