There is a clear and immediate need to re-evaluate what cover is included in your farm insurance policy and what value you have on the different aspects within the policy.
From talking to a number of the insurance company representatives in the last week it is clear that many farmers are not engaging with them despite significant changes on a number of fronts. While apathy is fine if there is no reason to claim, you could find out you have your assets very much underinsured if something goes wrong.
The scale of the stock value change in the last number of months and years has been very significant. Think about it – a farmer who had 100 spring lambs three years ago might have had the value on average at €70 each or €7,000 in total. This year they might be worth €150 each or €15,000 in total.
Average-quality dairy-bred cattle that might have been worth €600 to €700 two years ago at 15 months of age could be closer to €1,000 each now.
The value of diesel if stolen, the value of fertiliser if stolen, have gone up considerably in the last number of months.
The rebuilding value of sheds has increased 30-40%, with steel price increasing and the supply and demand issues.
Many farmers don’t want to engage with insurance companies as they fear rising premiums. They anticipate a higher cost of insurance on top of the cost increase in everything else.
However, paying big money for an insurance premium but still being underinsured by 50% of the loss claim is poor value for money. Making a small change and updating your policy while not always increasing your premium may give you more cover at better value.
Pick up the phone, have the conversation with your broker or insurance agent. Stress test where your business is now relative to your insurance policy.