Does Your Agricultural Business Insurance Suffer a Replacement Cost Gap?

Many farmers live and run their business on their agricultural property. Many buildings exist on these types of properties including residential and commercial buildings. Commercial buildings for farmers can include barns, silos, sheds, or garages. The Douglas Agricultural Cost Guide is a replacement cost valuation tool that helps you determine the appropriate insurance coverage you need for designated agricultural structures. It can also help farmers determine if they have an insurance gap for their barns and outbuildings.

What is Barn and Outbuilding Insurance?

This is coverage for any building on a property that is not the main residence. Outbuildings for agricultural purposes can include:

Do You Have an Outbuilding and Barn Insurance Gap?

It’s essential for hard-working people in the agricultural sector to understand they may require two distinct types of farm insurance. A farmhouse typically falls under a hybrid policy that covers commercial and residential use. Outbuilding insurance is usually solely commercial. Although an insurance carrier can provide a cost-effective package, ask yourself these questions before putting a policy in place.

  • Does the barn insurance account for today’s labour costs?
  • Will the policy pay for foundations required by current building codes?
  • Would a claim for “specialty” post-and-beam timber work be honoured?
  • Can you anticipate premium contractor payouts for a quick rebuild timeline?

These questions go to the heart of an agricultural business’s needs. Many policies underinsure the barns and outbuildings based on today’s costs. Farmers also need outbuildings such as barns and silos promptly rebuilt to earn a living. Without accurate replacement cost coverage in place, your farm remains at risk.

What Factors Influence Outbuilding Insurance Replacement Costs?

Agricultural buildings vary in size and purpose which makes determining outbuilding insurance coverage difficult. At Douglas Cost Guide, we use several key factors that can influence the replacement value of outbuildings such as:

  • Total Floor Area
  • Sidewall Height
  • Location
  • Ventilation
  • Quality of Construction
  • Extra Features

Douglas Agricultural Cost Guide Accurately Estimates Barns & Outbuildings

Successful risk management plans must account for all the potential moving parts to cure a disaster. Agricultural business coverage requires accurate estimates for every building on the property. And a quick recovery from a loss also may call for expedient rebuilds and updates to meet today’s codes. The Douglas Agricultural Cost Guide brings 30 years of experience to the table and uses the latest labour, materials, and code data. Agricultural business owners can select the easy-to-use online option to get a reliable estimate and mitigate risk. Contact us to learn more about our replacement cost calculator tool and how farmers can easily determine their outbuilding coverage needs.