Connecting with your agent is key
During this time of uncertainty, Nationwide and your local Nationwide farm agent are working hard to help farmers maintain the right coverage levels without incurring too much additional cost. Now is time to talk with your agent.
“My immediate concern is making sure you have adequate coverage,” said Nationwide Associate Vice President for Agribusiness Regional Sales Nick McCleish. “We have to make sure the amount of insurance is keeping pace with rising costs.”
McCleish cites a recent example when a farmer had to replace a $75,000 grain cart. But at the time of replacement, the price for that grain cart had surged to $90,000. That meant the farmer paid the additional cost out-of-pocket. “Paying those types of increased costs become much more difficult if you don’t keep your policy updated,” McCleish said.
Adding inflation guard coverage can help
The optional inflation guard coverage can help prevent such revenue losses by increasing dwelling and structure coverage limits at policy renewal. Also known as Construction Cost Adjustment, it helps to account for inflation in replacement or construction costs based on appraisals.
But inflation guard doesn’t always cover all additional costs. It’s important to have a good idea of costs for things like building materials and equipment ahead of time. Then match coverage levels to potential unexpected replacement or repair needs.
“Your insurance should not be a ‘set-it-and-forget-it’ type of activity. Keep your agent up to speed on how your operation's changing. Make sure you're covered appropriately,” McCleish said. “Have an agent that understands your operation, and uniqueness of what you're trying to do. Our Farm Certified agents serve that purpose.”
Talk to your Nationwide Farm Certified agent to confirm your insurance coverage is adequate or make any changes to make sure you’re covered.