Guide to Farm Insurance and Farmyard Building Costs
Are my Farm Buildings Adequately Insured?
This is probably the trickiest area of farm insurance since there are many different types of farmyard buildings ranging from modern slatted sheds to old stone loose cattle sheds. The basic rule is that your Farm Buildings should be insured for the cost of replacing the building in the event of a total loss. However, we recommend that you deduct the cost of replacing a slurry tank since this will not have to be replaced in the event of a fire or storm.
A picture tells a thousand words...
Farm Buildings - cost to re-build guide:
Loose Stone Cattle Shed
- €45 per square foot with a corrugated roof.
- €95 per square foot with a slate roof.
Modern Loose Cattle Shed
- Includes concrete floor, slurry collection bank, steel frame. Walls are part concrete and part cladding.
- €35 per square foot and do not include the area of the tank.
Round Roof Hayshed
- €18 per square foot with no concrete floor.
- €25 per square foot with concrete floor.
Slatted Shed for Cows
- Includes concrete floor, precast concrete slats, gates and cattle pens, underground slurry collection tank, steel frame with re-inforced cladding and walls are part concrete and part cladding.
- €33 per square foot.
Machinery Shed/General Purpose Shed
These rebuilding rates include for demolition and disposal of existing building. VAT is not included as this can be recovered for farm building repairs. Supervision and professional fees associated with the rebuild are included.
It is important to get your buildings sum insured right when arranging or renewing your farm insurance policy. The danger in getting it wrong, or too low, will become apparent when there is a claim on the policy. The Insurance Company will appoint a Loss Adjustor to settle your claim. The Loss Adjustor is working in the interests of the insurance company and not you, the farmer. Their objective is to settle the claim and quickly and as cheaply as possible. If they believe there is under insurance, this will proportionally reduce the claim payment in line with the under insurance. Similarly, there is also no advantage in over-insuring your buildings – you will only end up paying too much premium to the insurance company.
We always advise farmers to break down their outbuildings and sheds. We like to see each one listed on an insurance policy schedule with its own re-building sum insured. Doing it this way makes it easier for you, the farmer, not to forget about a building or shed, makes the sum insured more accurate and always helps make the picture clearer for everybody, especially when there is a claim.
Farm Insurance Companies Differ...
There are four insurance companies offering farm insurance products and they are all a little bit different. For instance, only two give storm damage cover in respect of farm buildings and there are various conditions attached in order for storm cover to be granted. The Insurers also have different policy excesses. Talk to us and we will give you advice.