New machinery policy to bridge gap in valuations

Lycetts has launched a new insurance policy for farm machinery.

The rural insurer says its guaranteed asset protection (Gap) insurance bridges the gap between the original amount paid for the item and the amount an insurer will pay out, based on the value at the time of a claim.

It said in the event of a total loss of equipment, such as theft or a writeoff, the insurance will help the farmer recover the agreed value, rather than the market value insurers usually offer.

“Machinery depreciation can be significant drain on farmers’ finances, accounting for a considerable portion of input costs,” said Lycetts farm motor expert, Andrew Hay.

“Lycetts’ new Gap cover will help provide a level of protection for farmers, so that they are fully compensated in the event of a claim.”

The insurance cover is underwritten by First Underwriting, and the premium is calculated by the insurer based on the value of the vehicle and an agreed depreciation rate.