FBD Insurance is applying a new 25% excess for storm damage claims to farm buildings over 40 years old, under farm multiperil insurance policies.

The company has also said it is increasing standard excess for storm damage to farm outbuildings from €350 to €500, which will apply to outbuildings that are 40 years old or newer.

For outbuildings over 40 years old, the excess will either be €500 or 25% of the claim amount, whichever is the greatest of the two.

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The changes will apply to policies from the next renewal date, FBD has said.

Exceptions

If the building has gone through significant structural renovations in the last 20 years, the 25% excess will not apply and the standard excess of €500 will apply instead.

“Significant structural renovations” includes, at a minimum, a full roof replacement including the roof frame, carried out in line with the building regulations at the time.

FBD has said it may ask for proof of renovations.

The oldest section of a building will determine the overall building’s age, if it is made up of sections of different ages.

Example

In a letter to policy holders, FBD has provided some examples of how the new changes will affect policies.

Example:

A 50-year-old haybarn is completely destroyed in a storm.

  • Rebuild cost: €60,000.
  • Sums insured: €60,000 (no underinsurance).
  • Excess for older buildings (25%): €15,000.
  • Claim payout: €45,000.