6 Things To Remember When Looking For Farm Insurance
Did you know that there are around 192,000 active farms in the UK?
While this is great news, this figure has fallen substantially, by more than 100,000 since 1990 in fact, and therefore, this important sector needs protecting.
Though this might require a much bigger conversation and action, each farm can start by protecting themselves and their own land on an individual level.
A large part of this protection is farm insurance, and choosing the right policy is absolutely vital.
But how do you do this?
Well, if you are the proud owner of farmland, you can start by checking out this guide. Below, we’ve put together a list of important things to remember when looking for farm insurance.
Read on for more advice.
1. There are different levels of cover
One of the most important things you need to remember when looking for farm insurance is that there are lots of different levels of cover. Because of this, you can never take for granted that everything you need is covered in one policy.
Instead, you need to make sure you do your research and find a policy that offers full coverage or at least covers the different areas you need. For example, some of the different types of cover could include:
- Farm property insurance
- Farm liability insurance
- Dairy farm insurance
- Arable farm insurance
- Livestock insurance
- Farm equipment insurance
- Vehicle/equipment insurance
- Public liability insurance
- Employer liability insurance
- Accident insurance
- Environmental pollution insurance
The type of policy and cover you need will depend on the type of farming you do, what equipment and property you have etc. But either way, you need to make sure that you thoroughly research the different policies and that you get the full cover for your unique circumstances.
Otherwise, if the time comes to make a claim, you might find that you’re not entitled to as much as you thought - or worse, anything at all.
2. Always shop around
It can be tempting just to settle for the first insurance policy you find to get your farm covered quickly, but this can lead to several issues. Firstly you could end up not getting enough coverage, as we’ve mentioned above. Not only this, but you could end up paying too much or not finding the right policy for your farm.
Instead, it’s a good idea to shop around and compare plenty of policies before you settle. You can use comparison websites to get you started; you could also reach out to different providers individually to get a quote.
You could also speak to insurance brokers for professional advice. They will be able to point you in the right direction and help you find the right deal. Once you’ve gathered a few quotes from whatever source works best for you, then you can compare and contrast to find the right level of cover for the right price.
3. It’s important to read the terms and conditions
We’ve already discussed the fact that not all policies are the same, and you need to find the one that best suits your business. However, before you sign anything, you need to double-check that everything is in order by reading the terms and conditions of each policy.
You should never buy a policy without reading the small print, even if it seems boring and time-consuming. This is because you don’t want to get caught out should you find yourself trying to make a claim one day.
Often, certain policies won’t cover certain belongings or eventualities, and these exceptions will be listed in the fine print. You could also come up against other unfair terms, such as misleading clauses about the contract or your legal rights. This is why it is always so important to check.
Plus, when looking at policies, if you have any questions, no matter how small or silly they may seem, you should always ask the provider. This will avoid any nasty surprises and stops you from signing a contract you might regret.
4. Don’t just focus on price
A farm is a business, and therefore it stands to reason that you always have a budget in mind. However, you should never choose farm insurance based solely on price. Of course, this will come into consideration, but it should not be the driving factor.
Otherwise, you could end up with a weaker policy that doesn’t cover you properly. So although the budget must be carefully considered, you need to get the balance right between money and your level of cover.
Often it is the case that when you buy cheap, you don’t get what you expected. The more you pay, the more comprehensive and protected your policy is likely to be. So just keep this in mind when looking for the right farm insurance policy.
5. You can ask for discounts
While we’re on the subject of budget, don’t be afraid to haggle a little or speak with insurance brokers or providers to negotiate on price. Often the price that is quoted is not set in stone, particularly as policies can be adapted and tailored.
Not only this, but some farms will qualify for a discount on coverage depending on the nature of the land and where it is. So it’s always worth checking these things out. This is another way to get a great deal with full coverage.
6. Your coverage and needs might change
Finally, don’t want to fall into the trap of just letting your policy roll over year after year. As some of these policies will be set to auto-renew, this is another thing you need to look out for in the small print.
Instead, it’s a good idea to review your insurance needs every 12 months, perhaps shop around a bit, and you might find you can get the same coverage even cheaper. This is particularly important if you’ve made changes to your farmland throughout the year or changed the activities you do there.
You need to make sure that your insurance policy is up to date with your current needs. It would be a mistake to assume that your existing policy has you covered without checking it. So always mark the date on your calendar and give yourself a couple of weeks’ notice to review your farm insurance policy and possibly find a new one or increase cover where needed.