Navigating Farm Building Insurance: Key Details to Know

Insurance is a crucial safety net when it comes to safeguarding your farm and its assets. Farm building insurance is one of the many different insurance options offered to farmers. But not all farm insurance policies are the same, and it's crucial to understand the main variations between them to remain protected in unanticipated events. Farm and General discuss the key details you should know.

Understanding 'Day One' Cover and the 'Uplift' Factor

'Day One’ cover is a phrase that merits consideration in the context of farm insurance. This phrase describes a measure of protection against inflation from the date of the loss until the day of reinstatement. This is where the idea of an "uplift" is applicable. An insurance policy's adjustment for inflation and the coverage level to reflect increased material costs during the rebuilding process is known as an "uplift." 

It's crucial to keep in mind that not all insurers provide 'Day One' coverage with an uplift. Some farm insurance policies simply pay out according to the value at the time of the loss, not taking into account the rising costs of reconstruction over time. This distinction could result in a substantial difference in the compensation you receive. 

The Significance of Uplift Amounts in Farm Insurance

Different insurers have varying uplift amounts when it comes to "uplift" plans. While most insurers would give an uplift of 15%, a chosen handful stand out by providing a 50% uplift. This distinction is significant, especially in light of any difficulties that can emerge throughout the restoration process, such as observing planning and construction rules or resolving issues with material availability.

It is best to choose an insurer with a greater uplift amount when deciding whom to go with since it offers a more practical safety net against the unpredictability of reconstructing your farm buildings.

The Role of Rebuild Cost Assessment and RICS Surveyors

The process of calculating the precise rebuild cost, often known as "reinstatement" has grown more difficult. A trained Royal Institution of Chartered Surveyors (RICS) surveyor is ideally equipped for this role. However, not all insurance companies and brokers offer support with this cost estimation.

Some insurers provide assistance in the form of a cost surveyor in recognition of the significance of this evaluation. Some people might not provide the same help. There is also an intriguing caveat at work. If you submit a RICS survey to insurers, some insurers might waive the underinsurance condition, while others might not.

The Aviva Advantage in Farm Building Insurance

When it comes to farm building insurance, one name sticks out among the multitude of insurers. By recognising the work that farmers put into their enterprises, Aviva seems to be setting the bar higher. They give a 50% uplift and waive the underinsurance provision, which is in line with the potential complications and risks of rebuilding.

Get in Touch

When it comes to safeguarding your farm buildings, it can be an intricate world of due diligence that may seem overwhelming. Understanding the fundamental differences between insurers, particularly regarding inflation protection, uplift amounts and the role of RICS surveyors, is paramount. The primary takeaway here is to prioritise insurers that not only recognise the value you contribute but also provide comprehensive coverage that considers the ever-evolving landscape of rebuild costs. That’s where Farm and General comes in to ensure that your livelihood is safeguarded, and to provide advice on how best to ensure your farm is protected. Get in touch with our friendly and knowledgeable team today to see how we can best serve you.