Will your peace of mind go up in flames?
Farming is a high pressure business needing a high level of investment to support a farm family.
The protection of farm businesses is of paramount important to us here at CIP Insurance Brokers. The graphic scene of a farmyard fire is one we all dread and do not want our customers to see or have to deal with!
But if the worse should happen that is where good cover and advice steps in to give you and your family a blanket of reassurance in the face of a disaster.
The insurance policy’s purpose to get you and your farming business back up and running as quickly as possible. At CIP we strive to get the best cover and aim to protect your livelihood. Being NI based we understand the pressures on local family farms.
The issue at present for a majority of UK businesses is the risk of under insurance. A recent study estimated that 85% of all SME sized businesses, including farms, were under insured. This can cause a myriad of issues if you have to claim.
All insurance policies contain a clause called the ‘Condition of Average.’ This condition allows the insurer to address the issue of under insurance in areas such as buildings, contents or stock.
When buying cover always give total rebuild value bearing in mind that you need to include site clearance costs and any professional costs further down the line. If the worst should happen fees will be due to, for example, surveyors and architects.
The other factor is Brexit, which has meant that building costs have increased dramatically. Thus highlighting the problem of under insurance even more.
For example, if your farm buildings are insured for £100,000 and following a bad fire the insurance company loss adjuster deems the rebuild value was £200,000. Then as experts in this field they will say the farmer was under insured by 50%
This Condition of Average enables the insurer to reduce any claim for repair by 50% so, say the damage cost £80k to put right, you would only receive £40k, less any excess applicable, leaving a substantial shortfall!
Why take this risk? Don’t be caught out. Ring me today and ensure you have a review of cover and peace of mind. Please contact me, Mark Payne DIP CII at Crumlin based CIP Insurance Brokers on mob; 07756 500652.