Barn Replacement Value for insurance?

[DaisyBabyCat]

My offer was just accepted on an equestrian property and I am so excited! We haven’t closed yet but I will have to be getting insurance set up soon and I have no idea how you go about figuring replacement values on the barn and it’s attached structures to know how much to insure it for. We did the rough numbers pre-sale and figured it with a replacement value of around $300k but I have no clue if that is even close. That was through my current insurance company who doesn’t specialize in horse properties though. I’m wondering if I go through a specialized equestrian focused insurance company would figure that for me?

It’s a Morton Building. There are 10 12x12 stalls, overhead hay loft storage, 60x120 indoor arena with an attached enclosed 53’ round pen, tack room, bathroom, and a large adjacent equipment and hay storage area off of the arena.

[Bluey]

What does the county tax assessor lists it for?
That could be a starting point.

[clanter]

really have no idea as even though these are there the sizes if of the arena and round pen are are the small sizes and most liekly if destroyed OP would want them to be enlarged but one thing that has to be added since this replacement insurance is site clearing demolition of a damaged structure and any new permits.

I know my homeowners has a $50k set aside for removing the damaged structure and permits

[Foxglove]

Suggest calling Morton with your barn specs and asking what it would cost to build? If there are stalls in the barn, perhaps on-line shopping for stall?

For what it’s worth, where I live, the agricultural structure is insured for replacement value, and the contents for 3x their value --the assumption being that whatever is in the barn (hay, grain, cows, chickens) will cost that much to buy, harvest and/or return to their productive lives.

[frugalannie]

Our experience with property insurance is that your insurer will come up with agreed upon replacement cost numbers. We got an initial level of protection from the insurer and then they sent out appraisers who refined the numbers. They’re very good at figuring out the per square foot cost of replacing almost any kind of building in your market.

If people could just submit their own replacement values it would be unwieldy to put it mildly. Some would underestimate, and some (nefarious types, not you) would overestimate. And I can tell you from a friend’s experience following loss of a barn to fire that the insurance company won’t pay out anything more than they have to. All they will pay for is the cost of replacing the building they insured. Any extras are on the owner.

Best of luck with your new place!

[NaturallyHappy]

@Foxglove, would you be comfortable sharing your insurance provider? Thank you.

[clanter]

remember there is an 80% rule which means that an insurer will only fully cover the cost of damage if the owner has purchased insurance coverage equal to at least 80% of the total replacement value.

[goodhors]

Call the local Morton Building folks and ask what it would cost to build another one? They should have records from building your barn, know the sizes and features they included in the package.

Morton barns cost more, but come with warranties lasting YEARS, on the structures, paint, metal. I would certainly have a Morton Barn if I could get anything I wanted! Prices on metal siding, labor, other materials have gone up greatly, so replacing would certainly cost more than the original barn did. I would not want to “settle” by having a lesser builder replace my Morton structure if something bad happened to it!

You might want to have that written into the insurance contract, so any replacement or repair work is done by Morton, not another company. Don’t want to deal with how insurance does with auto repair, going for the low ball repair bid.

[Foxglove]

Will check with DH when he comes home. Will PM

[gradytb]

Agree with this. I have a Morton barn also. They will have the plans of that barn if you know the previous owner’s name (assuming they built it) but they will be able to tell you what it would cost to build a new one just like it. Get ready for sticker shock!!

[DaisyBabyCat]

I’ll contact the local Morton people today, it will be interesting to see what they have to say about the rebuild cost. The barn’s original owner showed expensive horses and didn’t spare expense when building it. I received another quote from an agent, who insures more equestrian properties, and she put a $600k replacement value on it.

[gradytb]

My barn is much smaller—3-stall (12x14) feed room, wash rack and shedrow style. (30x56’) I had it built in 2017 (? or 2016) to replace an old hog barn that had been turned into a horse barn years before. I’m planning to move and was looking at the cost to reproduce my exact same barn (I LOVE my barn!) in another state. I paid $62K for mine (plus electric and plumbing) and the new one was priced at $124,000.

[DaisyBabyCat]

Wow, that’s a big jump in not so many years!