House and Barn values … are you where you need to be?

We are seeing inflation hit prices everywhere – from the gas pump to the grocery store to the goods and services we need for everyday living. Inflation is also affecting the replacement cost values on houses and barns so it is important to review your insurance policy.

If your house or barns are underinsured and there is a claim, you might not receive the amount you need to make repairs or rebuild in the event of a total loss. For example, if a barn is underinsured by 30% and you have a $10,000 covered loss (and a $1,000 deductible), that claim could be paid at $6,000 instead of $9,000. This is called a co-insurance penalty.

Talk to your insurance agent to review the values of your house and buildings. Ask them to update your Replacement Cost estimators to ensure that you are within an acceptable value.
Another area you need to look at is how are the buildings covered on your policy. Many homeowners policies do not list the buildings as separate structures but instead they are insured under the “other structures” or “appurtenant structures” category. This is typically a percentage of the insured value of the house. If your house is insured for $200,000 then the “other structures” coverage is typically $20,000-$40,000. This may not be enough to cover a loss on your barn.

If you use your barn in a business (boarding, lessons, or training) there could be an exclusion on the policy. This means that in the event of a loss to that building, the company could deny payment. It is important to read your policy and know how your buildings are covered and at what value.

The worst time to find out that your policy has limitations is after a loss has occurred.

If you want a quote that will include your house, personal property, barns and buildings, farm equipment, tack, personal liability, and equine liability, give us a call at 614-875-3711. We would be happy to send you a short questionnaire that will give us what we need to get estimated quotes from our companies. These quotes will not obligate you to changing your policy nor will we pressure you with phone calls or emails.

Our goal is to help you choose the best policy for your needs and we do that by listening to you and then giving you options to consider.

Call us at 614-875-3711 to discuss all your equine insurance needs.