Thursday, December 14, 2017

Check insurance to ensure adequate cover, farmers urged

December 1, 2017 by  
Filed under News & Business

Farmers are being asked to check their insurance following concern that currency fluctuations mean some policies may offer inadequate cover in the event of an accident or claim.

“Over the last few weeks we have seen an increasing number of claims which have been under insured,” says Becky Kooner of insurers Belmont Regency. “We thought it would be wise to give our farmers some extra advice and support to avoid this happening in the future.”

Brexit and the weaker pound have seen agricultural vehicle prices increased and in some cases double over the past 18 months. Some second hand vehicles were increasingly hard to get hold of and prices had increased as a result, said Ms Kooner.

“We urge all of you who have agricultural vehicles to check your insurance documents and look at the values you have on these vehicles at the moment. Ring a dealer local to you and ask them for a current value on your vehicle and then adjust your insurance accordingly.

“We know times are hard for farmers and you want to keep your costs down, but there is no point insuring a vehicle at a lower price and a lower premium, if when you claim you are unable to replace the vehicle for one of a similar value.”

Farmers should bear in mind how they will fund the deficit between an old vehicle and the price to purchase a new/second hand one. “Your insurance company will not pay out more than what you have insured the vehicle for even if the current market value is more at the time of the claim.”

In terms of farm cover, the main shortfall relates to livestock values, which should be checked at least once a year at renewal, says Ms Kooner. “If you purchase livestock throughout the year it is advisable to again check the total amount you have insured.”

Livestock insured for £750 but actually costing £1000 to replace would mean that a policy only covers 75% of what it should. “Any claim pay-out would be settled on a 75% basis, which could result in a financial loss for the farmer,” says Ms Kooner.

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