How could being underinsured impact your agricultural property?
At UK Agricultural Finance, we often provide funding for agricultural property. Whether it is to renovate, purchase or build agricultural buildings and properties, we are here to help.
We often find that following investment, clients need to adjust their insurance policy to reflect the changes made to their agricultural property, and this is where agricultural insurance providers such as Atticus insurance come in.
Do you know how to appropriately value your agricultural property for insurance?
Did you know that, on average, 68% of buildings are underinsured? This could lead to a disastrous outcome if a claim occurred.
Atticus insurance works with their clients to develop a clear understanding of their insurance needs, and as such, works to ensure that their clients have the right level and value of cover for their agricultural property. Atticus insurance will seek advice from the lenders they work with to determine the correct reinstatement value for your agricultural buildings and properties.
Most insurance buyers believe their building-sum-insured should reflect the property value. This is incorrect! The building sum insured should reflect the reinstatement value of the property.
So, what does this mean?
The reinstatement value of your agricultural property should include your main property and all outbuildings. Most of the insurance policies offered by Atticus insurance can provide a split section for this. However, it must consist of all buildings.
The reinstatement value will be calculated on many factors:
- Debris removal
- Architect fees/survey fees
- Loss adjustors
- Building materials
- Labour costs
Of course, many other factors are taken into account, for example, listed buildings, asbestos removal, and the location of your property.
How to protect your investment in your agricultural property?
Many clients have benefited from the services of Atticus insurance. Atticus insurance will work with us and other lenders to provide a policy that meets the terms of the lender.
Atticus insurance can provide short-term (3-month minimum) or 12-month annual policies to meet your needs.
Their team, just like ours, has experience in dealing with agricultural property and land, from small holdings up to country estates, redevelopment sites, renewable energy, and the leisure and tourism industry.