What is
Barn and Farm
Outbuilding
Coverage?
Most farms include one characteristic architectural item: a lot of purpose-built structures dotting the acreage. Farmers make it happen, and when they need a new barn or outbuilding, they build it. Barn & Farm Outbuilding Insurance exists to protect that can-do attitude and the individual needs of your farm. To ensure all those much-needed structures can be properly rebuilt in case of an accident. This coverage applies to any building on your property that is not the home.
A few farm buildings fall under Barn & Farm Building insurance coverage:
The specific coverage will vary depending on the custom-built farm insurance policy you develop with your Excalibur Farm Insurance Broker.
It is crucial to understand what is included under the rebuilding cost of a farm building when determining its coverage limit. Equipment like stabling, feeding, heating, ventilation, and electronics all go into calculating the replacement cost limit. Working with your broker to clarify which items fall under your Farm Outbuilding Coverage and what needs to be covered specifically is important.
For most farm buildings, replacement cost coverage is strongly recommended. This should include complete rebuilding evaluations using the most up-to-date programs available to ensure that, should the worst happen, you can rebuild the farm building without having to go into your own pocket. This coverage pays up to the limit of coverage listed on the policy without deduction for depreciation. There are also actual cash value options available. This method of coverage uses the rebuilding cost of the farm building but is subject to depreciation based on the age of the building. This is useful for coverage on buildings you still use but would never rebuild in the same way, such as older bank barns.
People are often surprised at how much insurance is recommended to cover their outbuildings. The reason is that the rebuilding cost is often higher than the original cost to build. This is a result of ever-increasing costs for labour and materials, along with the fact that the barn needs to be rebuilt right away, not on the builder’s schedule. You need to have your outbuildings insured to their full rebuilding or replacment value so that in the event of a loss you are adequately covered.
Understanding Barn
and Farm Outbuilding Risks
When looking for farm building insurance, it’s important to understand the risks that are covered. Comprehensive coverage includes protection against all risks, except for those that are specifically excluded, such as flood or deterioration. On the other hand, named perils coverage only covers specifically listed causes of loss, such as fire or lightning.
It’s also important to consider other additional coverages that may not be included in comprehensive or named perils policies. These extended coverages may include flood, earthquake, power surge, or snow load, and can vary in cost and availability. Discussing these options with your Excalibur Farm Insurance broker is best to determine which ones are right for your farm’s needs and safety.
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