Row Of Green and Red Tractors

Higher costs of farming – is your sum insured correct?

Rising farm input costs and equipment appreciation can cause underinsurance on your policy in the event of a claim.

When meeting our Field Team, Members have commented that almost everything is getting more expensive, from feed to fuel, fertiliser to chemicals and more. High demand and low supply is also driving up the value of new and used farm machinery, particularly tractors.

Jo Hawkins, Field Insurance Advisor at Cornish Mutual, says:

"Rising costs are also affecting property rebuild and repair costs, so it is always worth reviewing your sums insured on farm and residential buildings to ensure they are sufficient to cover the full reinstatement cost.

"Our message to farming Members is to make sure that these rising prices and equipment values aren’t causing underinsurance which may leave you with a shortfall when making a claim."

Increasing the insured sum on your policy to ensure that you are fully covered is a relatively small additional cost, and well worth it if you do need to make a claim.

Cornish Mutual’s Field Team are happy to help you make the best decision on your policy and ensure correct insurance cover for your farm.

If you are concerned about your sum insured, don’t hesitate to get in touch with our Member Services Team on 01872 277151.