The Value of a Farm Insurance Review

June 18, 2010

Jim’s insurance company is not covering the full cost of his barn fire. He didn’t realize he needed to call his agent when he quadrupled his herd of cattle last year. Because of this oversight, he only had insurance coverage on a quarter of his livestock. Angry and frustrated that he doesn’t have the time or money to deal with this, Jim wonders how this situation may have been avoided.

Farm owners like Jim are busy people. Reading the fine print of their insurance policies is not high on the priority list. But the aftermath of a loss is no time to find out what is not – and what could have been – covered. That’s why farm insurance reviews are important. Clients who review their policies with their agents every year or two can rest assured that they’ve got the protection they need, and are not paying for things they don’t.

So what is a farm review?
A farm review is a visit from your insurance agent, who works with you onsite at your farm. Your agent reviews your coverage and operations and acquires up-to-date information, including current photos. By doing so, he or she can make sure you’re adequately insured based on your property, equipment, and the type of work you do. In Jim’s case, the agent would have realized that his policy didn’t cover all his livestock.

Providing peace of mind.
Clients who have regular reviews feel confident with their coverage, knowing that they’ll be properly protected if the unthinkable happens. Some clients fear farm reviews because they feel they are an inconvenience and just an excuse to raise premiums. But much more worrisome would be an agent who has never seen the property. “In a single visit, we can identify hazards that can be fixed, and confirm coverage,” explains Gary Rosenow, an experienced farm agent who performs farm inspections for The Co-operators, Canada’s largest farm insurer. “Sometimes we’ll suggest adding more protection. Sometimes we’ll find ways you can save money without exposing yourself to more risk.”

Ask questions.
A farm review is an opportunity for you to ask any questions you might have. Perhaps you purchased a new piece of equipment and forgot to let your agent know. This is the time for the agent to gather all the information about the equipment and provide the coverage. Vice versa, you may not have advised your agent about selling some machinery awhile back, resulting in unnecessary premiums being paid. Maybe you are confused by some of the wordings in your policy package. This is your chance to clarify your coverage and address concerns before they arise.

Know your limits and deductibles.
When reviewing your policy, remember to inquire about specific limits in your policy. For example, items such as tack are usually subject to limits under your farm policy. Your agent can check on your tack room, discuss the values of the tack and determine whether or not you need to increase the limit. You should also ask what items are excluded under your policy, and whether you can purchase coverage for them, if you so choose.

And make sure you know what your deductibles are – that’s the amount you pay towards a claim. The higher the deductible, the lower the premium. Depending on your risk appetite, you may decide to raise or lower your deductible.

Ask if there are any discounts you qualify for. Every company has different ways of setting rates and many offer discounts for different things. So be sure you’re getting what you’re entitled to. 

Small investment of time that will benefit you.

The farm review process can be a rewarding experience if you engage with your insurance agent and ask questions. No two farms are alike and no two clients are alike. That’s why farm reviews are so important. A good agent is a professional who strives to ensure that your policy is tailored to your specific needs. So make sure you have an agent you’re confident in, and take advantage of a farm review. It’s a small investment of your time that could pay big dividends.

- The Co-operators

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