It is with great excitement and anticipation that many embark on a new lifestyle as the proud owner of a smallholding, but both newcomers and more experienced converts are being urged to make sure suitable insurance cover is in place, or face being left exposed to serious risk in the event of a peril occurring.
Whilst for many, a new smallholding will represent a lifestyle choice, maybe as a hobby farm, for keeping rare breeds or as grazing for horses or sheep, it does not negate the insurance implications, simply because it is on a smaller scale than other farm units.
If, for example you graze a flock of sheep, it does not matter the size of flock, if one escapes and ends up causing a road traffic incident, the liability will be the same. With recent changes to personal injury law, claims costs have increased significantly in value and could devastate a smallholding without adequate cover.
Emma Barnes, (smallholder division) of agricultural insurance brokers Farmers & Mercantile (F&M) said: “Breaking this down to the simplest level, you may have an outbuilding or shed in the garden in which you decide to house a goat, at which point the structure becomes an agricultural building and should be covered accordingly.”
Similar applies to use of machinery, value of farm buildings, value of livestock and crops. Having suitable and realistic sums insured to cover for damage or losses could be critical to the viability of the smallholding project.
Although it can sound all very daunting, particularly if the smallholding is either a hobby or secondary income, there are easy, cost-effective packages available to suit specific smallholding requirements.
Farmers & Mercantile provide smallholders quotations specifically designed around individual requirements, at a competitive price. Cover for this sector has been difficult, but this package fills a void and has been welcomed by the market.
This package fills a void and has been welcomed by the market.
A common country sight... but they could cause a traffic accident