Insuring to the accurate value of your home, buildings, equipment and inventory is an important consideration when reviewing your insurance coverage needs. Here’s why: If you have a major loss and your property is not properly valued, your claim reimbursement could fall short of your expectations and put you in a bind. In the event of a major loss, this might even create a serious financial shortfall.
Studies show that a large percentage of homes and farm buildings in the United States are underinsured. So we recommend discussing this with your insurance agent to ensure you’re keeping your property values up-to-date.
Request a consultation
If your insurance agent has not been to your farm or ranch in a year or more, ask for an in-person visit to verify your values. Current values are determined by a number of factors, including the cost of construction in your specific region.
You’ll want to be sure your values are based on current information as well as forecasts. If you’ve acquired new equipment or land, or expanded your operation, this is a good time to make sure everything is covered.
Consider automatic adjustments
Ask your agent if he or she offers a policy that automatically adjusts for changing values. The AgriChoice® farm insurance policy offered by Nationwide Agribusiness includes a provision known as automatic construction cost. This means that, at each renewal, your home valuation is automatically adjusted to reflect current building costs in your zip code.