Post-pandemic construction costs to rebuild your home, barns, and buildings on your farm have risen dramatically. Could your farm be underinsured should you need to rebuild?
As a farm owner, you should be aware of the limits of insurance you’re carrying for your home and barns, should you need to rebuild in the event of a fire or natural disaster. You may notice that your insurance company has raised the limits on dwellings and some barns by 3-4% annually, but you may not thoroughly check to see if you’re carrying enough insurance to replace the structures on your property.
Rebuilding Costs Have Risen
Although many insurance companies have an ‘inflation guard’ in place in an attempt to keep pace with replacement costs, they’ve fallen short in keeping up with construction cost increases. These include building materials, labor, etc. In the event that you need to replace your home or a barn, the cost to rebuild is now dramatically higher than it was three years ago. If the limit on a structure is not enough to rebuild, the difference will have to come out of pocket.
Your Next Steps
It’s important that you take the time to review your insurance policy to find out if your home and barns are insured at an appropriate limit. At Farm & Country Insurance, we pay close attention to farm insurance industry trends and strive to inform our customers of these types of changes that can impact their bottom line. Contact us today and let’s have a conversation.
