Valuing your farm for insurance

Farmer meeting with financial counseller in farm

Is your farm insured correctly?

A farm is a business, and like any business, it is important that you have the correct insurance cover so you can be sure that your assets and livelihood are protected if something goes wrong.

One of the most important things to consider when taking out an insurance policy is how much cover is needed. If the sums insured on your home, buildings, equipment, and inventory are not enough to fully cover the cost of rebuilding, repairing, or replacing them, you run the risk of being underinsured, meaning you may not be fully covered, and you could end up losing out should you need to make a claim.

If your farm is underinsured and you need to make an insurance claim, the value of the claim is reduced by whatever percentage the property is underinsured. For example, a fire damages an outbuilding and causes €100,000 worth of damage. The cost to fully rebuild the outbuilding is €400,000, but the policy cover is only €200,000, which means that the building is underinsured by 50%. In this case, the insurer may only cover 50% of the claim leaving you with a €50,000 shortfall.

Underinsurance has always been an issue, but it is important to recognise that rebuild and replacement costs for buildings, machinery, grain, diesel, and livestock values have increased significantly in the last two years, and it is important for policies to reflect these increases. You should always ensure that your values are based on current data as well as forecasts. If you have purchased new equipment, land, or expanded your operation, now is the time to make sure you are covered.

It is important to note that adjusting your policy to include these increases does not always result in an increase in premium, sometimes by adjusting your policy and making small changes you can get better cover for better value.

If you are unsure as to whether you have sufficient cover for your farm and buildings or are not sure where to start, call us, and we can review your policy and discuss your options with you. In some cases, a more in-depth review is needed, but we always offer each client a free, no-obligation initial consultation. Get in touch at 0818 118 118 (ROI) or 028 8224 9015 (NI) or visit our contact us by email at

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