Farm Insurance - 10 things to consider
Your farm is valuable and ensuring that your assets are adequately insured is important. Below are 10 things to consider to ensure you're adequately covered by your Farm Insurance.
1: What is the sum insured and market value for your farm equipment vs the actual replacement costs. You should review your insurance annually to consider any changes that may have happened to the price you'd need to pay to replace your farm equipment. If something does happen, you don't want to be caught short and having to find additional funds.
2: Reducing your sum insured levels on your policy might save you a few dollars now, but could cost you dramatically more when you need to claim. Some insurers may impose financial penalties if underinsured at claim time.
3: Identify your "worst-case" scenario and consider how you might respond and handle a scenario like that occurring.
4: What are the expectations you have of your Farm Insurance policy if an event was to occur? How aligned are your expectations to what your Farm insurance policy will actually do for you?
5: Do you honestly know what you are covered for and what you are not covered for with your Farm Insurance policy right now? If yes, then great, if not, then it might make sense to review your insurance policies with your insurance broker.
6: Is your farm machinery financed? If it is, then you need to align your farm equipment insurance with the requirements and terms and conditions of your finance so that you can be adequately covered if an event occurs.
7: Do you use your farm equipment beyond the boundaries of your farm? If yes, then those activities may not be covered with your standard farm insurance coverage. For example, if you use your Farm Equipment to do contract harvesting, you need to disclose these additional activities to your insurer to see if it is covered under your standard farm pack or farm insurance policy or if you will need to add in additional coverage for this activity.
8: Consider if a Farm Pack insurance policy is right for you. Farm packs can be more competitive but you need to talk to someone to work out if they are right for your scenario.
9: Be aware of what is covered with your Farm Insurance and what may be excluded from your policy.
10: How have your farming activities changed over the past 12 months or how may they change over the next 12 months? If you are planning changes in your farming activities, then consider how you may need to update your farm insurance to match your new activities.
Speak to a specialist broker for advice on your requirements to ensure you're fully covered.
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