Why do we inspect your farm and property?

4 minute read Published on Aug 2, 2021 | Last updated Aug 3, 2021 by BrokerLink Communications

Why do we inspect your farm and property?

A farm or property inspection and assessment can sometimes seem like a confusing and difficult process. There are many factors that go into inspections and assessments, such as the land, buildings, and safety features on the farm. An inspection will assess these factors to ensure your farm insurance coverage needs are being met. Each of these factors can affect your farm insurance in different ways.

Although this might seem like a confusing process, we’ll discuss the nuances of farm and property inspections. We’ll also discuss some common inspection terms you should know. By the end of this post, you’ll have all the important details!

Farm and property assessment

When it comes to farming, there are many risks and uncertainties. A farm and property assessment helps your insurance company understand all these details and ensure you have the right farm insurance coverage.

The farm and property assessment will ensure your farm will keep running in the case of an unforeseen event or circumstance. During an assessment, your farm and property will be examined for many different types of risks, so the broker can adjust your insurance coverage. Following the assessment, coverage recommendations might be made. If there are any problems or concerns, the insurance company may offer suggestions to correct the issue.

Why do we inspect your farm?

In short, farm and property assessments are done to ensure you have the right coverage, but there are other important reasons to have your farm and property assessed:

To ensure your farm is safe

During the inspection, we’ll look for opportunities to help you prevent any unforeseen damage or losses to your farming operations. We’ll also make sure there is nothing that could endanger your livelihood or safety. An important part of this is checking the overall condition of the heating, plumbing, and electric systems. Lastly, any risk of onsite exposure or unsafe conditions is investigated.

To update your coverage, if necessary

Any changes to your farm, buildings, or property occupancy may cause changes in the terms or limits of your insurance policy. For example, if a building becomes vacant, this will likely affect your insurance. In addition, farm renovations, home renovations, or equipment upgrades will all likely affect your insurance. These details may change your replacement cost as well as risk factors such as common and special hazards.

To ensure you’re receiving all available discounts

Improvements to your farm, equipment, and property might make you eligible for additional discounts. For example, installing security cameras may reduce your risk. Other discounts include bundling packages. For example, BrokerLink’s Farm Advantage program is a points program to gain exclusive perks. For more information, visit our farm insurance page for more details!

Factors that affect your farm and property’s value

Farm insurance premiums partly depend on the replacement cost of assets on the farm. Replacement cost is one of the factors that are assessed during a property inspection. There are many factors considered when estimating the replacement cost of your property and farm:

Farmland

In the event of crop loss, crop insurance will help you keep your business running. To accurately assess the value of the lost crop yield, we inspect the farmland.

  • Sales, land productivity, and geographic location of the farm are assessed. Geographic location helps determine climate, soil type, and suitability for crops.
  • Market studies are also conducted to estimate the value of the lost crop yield. In these studies, historical data is commonly used.
  • Using this information, farmland is classed into categories describing its productivity.

Residence and outbuildings

  • The residence on the farm is assessed for risk, replacement cost, and other factors. Replacement cost of your residence depends on many factors like the size, building materials, windows, and more.
  • Farm outbuildings, which the buildings used for farm operations, are considered largely based on their replacement cost. This includes factors such as the foundation, materials used for construction, and roof design.
  • Other buildings, such as farm shops, greenhouses, and stores are also assessed for their replacement cost. Just like the residence and farm outbuildings, these buildings are assessed based on factors such as foundation, size, and building materials. They are also classified based on how they are used.

Most common inspection terms you should know

Here are some terms that will help you navigate insurance and property inspections:

Risk inspection

Risk inspections are a meeting between you and the risk inspector. The risk inspector will assess your farm and property for potential risks and evaluate the buildings and equipment to ensure you have the right insurance coverage.

Remote sensing

Remote sensing is technique for evaluating geography and land cover using satellite images.

Eligibility

Eligibility means you can obtain something, like a premium discount or type of coverage, after satisfying certain requirements.

Cross-compliance

Cross-compliance links farming practices to payment discounts. This usually refers to environmental incentives. For example, if your farm practices methods that are good for the environment, you could be eligible for certain incentives.

Need insurance?

Inspections and assessments for your farm and property are important to ensure you have the right insurance. Inspections will also help you keep safe and make sure you’re getting all the discounts you deserve! If you have any questions or need insurance for your farm, contact BrokerLink today!

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FAQs about farm and property inspections

Will my assessment change due to a farm inspection?

After a farm inspection, your broker may suggest coverage changes or adjustments. The right coverage will help keep you and your business protected.

How will an inspection affect my property tax?

Property tax rates are determined by your municipality. For more information regarding property tax, contact your municipality.

What agencies conduct farm inspections?

If you have insurance with BrokerLink, we will do it for you! Contact your local BrokerLink farm insurance expert to discuss farm inspections.