Your farm insurance policy will provide protection for your dwelling, as well as your personal possessions and personal liability.
The first step in determining the coverage for a dwelling is an evaluation on the rebuilding cost for the home. This is the basis for the limit of home coverage. Your contents coverage limit and other limits for items such as detached private structures (personal garages or sheds) and additional living expenses are provided as percentages of the limit of coverage for the home.
For older Farm Homes some insurance companies provide an option for functional replacement cost. That is a method that bases the rebuilding cost of the home using new construction methods and materials. This can lower the rebuilding costs. Rental Homes rebuilding costs can be calculated in the same way as either method above.
The next step is determining the type of coverage you want on the home. Comprehensive, broad or standard are the three general options. These options cover different causes of loss. There are extensions available for overland water, septic back up and other causes of loss that can be specifically listed.
There are also discounts available for alarm systems, water monitoring systems, and many others. Excalibur will review all these options with you to make sure you have all the discounts that apply to your home.
The last step in determining your coverage for dwellings is to determine if you want replacement cost coverage or actual cash value coverage. Replacement cost is as it sounds, the insurance company will pay to fully repair or replace the dwelling should a covered loss occur. Actual cash value uses the replacement cost less depreciation based on the age of the dwelling.
An important consideration in all farm dwelling coverage is Co-insurance. This is a method that the insurance companies have to limit payment in the event that a dwelling is underinsured, and a claim occurs. Click here for an explanation of co-insurance.
Excalibur will work with you to provide the coverage options that you want to have and make sure you have the coverage you need.