Barns are the art and architecture of the countryside. Every person can admire the beauty of a well-kept barn. You can also consider this an experience and part of our culture. When economically speaking, it is impractical to keep old barns, but they let you understand where we are now. This understanding helps us move forward. Your farm is more than just your business. It is where your whole life runs now if you own a farm as a way of living. You can insure your barn against physical damages such as fire, lightning, windstorm, hail, smoke, theft, vandalism, explosion, riot or civil commotion, aircraft, sinkhole collapse, volcanic action, etc. This is an important aspect of your farm property insurance policy. Besides farms, your ranch structures and other farm buildings should also have insurance and be part of your policy.
Aside from the physical damages, these are also part of the coverage:
- Weight of ice, snow, or sleet
- Cosmetic damage buyback – covers cosmetic damage due to hail; actual hail damage that penetrates the surface is part of the coverage without this additional coverage
- Automatic adjustments of limits – inflation protection coverage
- Ordinance or law for farm barns, buildings, and structures
- Earthquakes
Barn coverage includes protection for:
- Equipment in the service of farm buildings, like water pumps, motors, and outdoor equipment
- Furniture, fixtures, machinery, and equipment used for the operation of the building that is located in, on, or within 100 feet of the structure
What Is Farm Outbuilding Insurance?
Your farm policy can include farm outbuilding coverage that protects damage against the buildings and other structures of your farm and ranch, as well as barns and horse stables. This is other than your dwelling coverage included in your policy. The dwelling coverage is for the coverage of your home. Your other outbuildings can also have insurance if they are on your farm and ranch insurance policy.
Outbuilding, Barn, and Stable Insurance Cost
The price of outbuilding coverage differs for every farmer or rancher since it depends on the things you own on your property:
- The amount of coverage you need
- The number of buildings you’ll need to cover
- The current condition of your buildings
Be sure to talk to your agent about the following:
- Insuring your barns or other buildings for replacement cost or actual cash value.
- The causes of loss, be it basic, broad, or special, you want to insure for.
- How much deductible to carry? A higher deductible may lower your premium, but you would have to pay more if there is a loss.
In some instances, insurance companies may provide coverage for collapsed structures. You should check your policy that explains the conditions and causes of the loss for what things would be part of the coverage once there is a collapse.
We also suggest talking to your insurance agent when adding a new barn or building to your property. Some insurance companies provide coverage of $100,000 for new construction for 60 days beginning with the delivery of materials that you can use to build your new farm.
In addition, some insurance companies also offer coverage for equipment breakdown and mechanical failure of systems built into barns or other farm structures. These include milking parlors, bulk tanks, and other equipment attached to a dairy barn. These would be for mechanical breakdown. Ensure that your insurance agent knows all the values of the fixtures, systems, and equipment you use for your barns.
More information on insuring barns
Insuring barns is a difficult process with different industry standards and various approaches. Insuring them is based on their purpose. In case the barn has historic value, it does not mean that it can still have insurance. Especially even if you don’t use it anymore for its original purpose. It is still possible. However, traditional barns cannot have insurance for the original value.
Insuring barns is based on cash, utility, or replacement costs. Cash value marks the expected useful life and notes the depreciated value over time. Utility value is based on how the barn is used. One great example is a barn used as a chicken coop before that now is used as storage for tractors. You will be given the storage value for the tractors, not the chicken coop anymore. Replacement cost value or replacing a new barn involves strict guidelines and can only be applied to barns under 20 years. Documents are needed to prove the age of your barn. Other insurance companies will base your insurance on measurement. This formula includes location, use, the current market value for a rebuild, clean-up costs, etc.
The players in getting a barn insurance
Make sure that you are an informed owner. Also, take the time to find the right agent to work with. Look around for recommendations and learn about other people’s insurance coverage. You must also know what is included and what is not in your insurance policy so that you won’t have trouble once there’s already damage to your barns. The resulting policy is a negotiated contract, an agreement of all parties involved. This is equal to a promise to pay if something bad happens.
Barns are different
Furthermore, insuring barns is different from insuring your own homes. Insuring your own houses means they get the value of the building and the personal property within. They need the details of construction and industry standards to determine materials, construction, finishing and functions like bathrooms, kitchens, bedrooms, etc.
What is the basis for refusing to insure a barn?
In addition, insurance companies can refuse to insure your barn if they are not properly kept and cleaned. They are particular about the cleanliness of your properties, such as barns.
Ask us Questions about how to insure a barn.
We hope we have helped you out regarding insurance for a barn. Now, you have information about insuring your barns. Please do not hesitate to ask us questions here at Team AIS in Denver, CO, if you need clarification on your policy or would like a free insurance audit of your existing policy.