Insurance costs for farm owners

[foggybok]

Have other people been getting hit with huge insurance rate hikes?

In the last three years my policy has gone up 35%. Now on top of that, they want to raise my limits to account for increased building costs. This would mean that my insurance rate will have increased 80% in 3 years. This seems crazy!

This doesn’t seem to be happening with the other properties we have that are just homes. At least not yet… maybe it’s coming…

[Bluey]

@foggybok

Have other people been getting hit with huge insurance rate hikes?

In the last three years my policy has gone up 35%. Now on top of that, they want to raise my limits to account for increased building costs. This would mean that my insurance rate will have increased 80% in 3 years. This seems crazy!

This doesn’t seem to be happening with the other properties we have that are just homes. At least not yet… maybe it’s coming…

Just one word, “yes”.

[clanter]

if the policy is purely a liability coverage there is not much justification for an absurd price increase unless you have expanded the operation

if the policy is coverage for structures, we are seeing+/- 20% value increases for replacement per year. The policy’s limitations should be increased to reflect the increased cost to replace. A policy’s face value coverage needs to be at least 80% of the actual replacement to provide full coverage.

There is a State Oversight agency in Every State where general insurance rate increases have to be approved/adjusted, What does your state’s agency say about rate increases?

My guess is agent fees are being increased by your provider, these fees are unregulated.

When we changed carriers to more transparent provider we found the friendly yearly calendar we got from our provider was costing us about $2,000 per year. We had been with the company for a long time (way too long) but the rates at first increased just a little bit unlit getting one of those what the hell bills. The shock was enough to look at other providers, then the shock was seeing how much I was overpaying

[foggybok]

@clanter

if the policy is purely a liability coverage there is not much justification for an absurd price increase unless you have expanded the operation

if the policy is coverage for structures, we are seeing+/- 20% value increases for replacement per year. The policy’s limitations should be increased to reflect the increased cost to replace. A policy’s face value coverage needs to be at least 80% of the actual replacement to provide full coverage.

There is a State Oversight agency in Every State where general insurance rate increases have to be approved/adjusted, What does your state’s agency say about rate increases?

My guess is agent fees are being increased by your provider, these fees are unregulated.

When we changed carriers to more transparent provider we found the friendly yearly calendar we got from our provider was costing us about $2,000 per year. We had been with the company for a long time (way too long) but the rates at first increased just a little bit unlit getting one of those what the hell bills. The shock was enough to look at other providers, then the shock was seeing how much I was overpaying

No, not strictly liability.

The breakdown in the increases was 35% increase due to “inflation”. And then they want to rewrite policy with higher limits, which will account for the remainder of the increase. So yeah, I get it replacement costs are up, but I think 35% increase for inflation is out of line.

I will look into agent fees, although I don’t think that’s were the increases are hidden. Need to pull out my old policies.

Also having Farm Bureau out next week for a quote.

Not sure where else to look as the boarding stables require special insurance. I was using an agent who was recommended to me as a area equine specialist.

[happilyretired]

In a word, yes. And its getting more and more difficult to get farm insurance at all(we’re in Central Florida).

[findthedistance]

Not sure where you’re located, but Farm Family has been very good to me managing two different boarding/lesson operations in MD. If they’re in your area, it’d be worth calling your local agent for a quote.