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Farm Outbuildings Insurance in Alberta

Alberta Farm Outbuildings Insurance Company

As an Alberta farmer, you know farm outbuilding insurance is vital to your daily operations. From barns to equipment shelters, these structures are essential for your farming infrastructure.

Imagine the devastation caused by a fire, storm, or other disasters that could damage physical structures and result in significant losses to your valuable assets.

A tailored insurance policy from MMI Insurance gives you the peace of mind of knowing your farm outbuildings are adequately protected, allowing you to focus on the core aspects of your agricultural operations without the burden of financial uncertainties.

Insurance to Value

A farm insurance policy relies on accurate asset values for fair premiums. The limit of insurance on the policy needs to be sufficient to cover the cost of replacing property which has been lost, damaged or destroyed in its entirety. Items that need to be included in the value to rebuild the building include the cost of demolition, debris removal, changes to building codes, cost of permits, architect and engineering fees, and the current cost of construction (i.e. labor and materials). Undervaluing assets may seem cost-effective initially, but it puts both parties at a disadvantage. For instance, if a barn worth $100,000 is insured at $60,000, expecting a payout based on the actual replacement cost will not meet the co-insurance requirement on your policy and you will be subject to a co–insurance penalty.

Understanding Your Co-insurance Clause

If the co-insurance requirement on your insurance policy is 80%, it means that at the time of loss, the declared value (limit of insurance on your farm outbuildings) must be no less than 80% of the replacement cost of that building. Failure to comply with this requirement will result in a “co-insurance” penalty (you will be required to share in the loss to the same portion that you are under insured.

Co-insurance typically applies to outbuildings, maintaining fairness in the insurance arrangement.

Farm Outbuildings vs. Residential Structures

Farm outbuildings refer to structures on agricultural properties used for various purposes, such as storing equipment, housing livestock, or sheltering crops. In contrast, residential structures, such as houses, cabins, rented dwellings or other habitable spaces, are dwellings where individuals live.

Farm outbuildings are typically larger and serve agricultural functions, while residential structures are designed specifically for human habitation.

Farm outbuildings are valued based on construction materials, size, cost of demolition, debris removal, changes to building codes, cost of permits, architect and engineering fees, labor and functionality. Proper valuation ensures adequate insurance coverage for these essential assets.

Types of Farm Outbuildings We Insure

At MMI Insurance, our farm outbuildings’ insurance covers a variety of structures crucial to your agricultural operations. Please note that the following list is not exhaustive. Contact us to discuss insurance options for all your farm outbuilding needs.

Garages, Implement Sheds, Repair Shops, Quonsets

Our coverage ensures your equipment and vehicles are safeguarded, minimizing disruptions to farm operations due to damage or theft.

Cattle Barns, Stables, Livestock Shelters

Farm outbuilding insurance protects your livestock housing, providing financial support for repairs or replacements in case of structural damage or other unforeseen events.

Granaries, Grain Elevators, Storage Barns and Silos

Protect your grain storage facilities, ensuring your harvest remains safe from risks such as fire, vandalism, or natural disasters.

Feed Mills

We provide insurance coverage that ensures uninterrupted feed production, helping you recover quickly from equipment breakdowns or other covered losses and ensuring a consistent feed supply for your livestock.

Other types of farm outbuildings we insure include:

  • Seed Cleaning Plants
  • Pole Barns, Hay Sheds
  • Apiaries

At MMI Insurance, we tailor farm insurance policies to your specific operations, whether you’re in grains, ranching, fruit and hay, mixed-use, or seed. We provide comprehensive coverage so you can navigate the challenges of farming with confidence, knowing that you are covered properly.

Risks to Farm Outbuildings

Your farm buildings face various risks that can significantly impact your insurance needs. From natural disasters to equipment failure, understanding these risks is crucial for comprehensive coverage.

  • Fire:

    One of the biggest risks on farms and ranches is the potential for fire. Faulty wiring, spontaneous grain dust explosions, hot machinery parked indoors, space heaters/heat lamps or combustible gas build-up can lead to devastating fires, posing a significant threat to your outbuildings. Since farms are typically located in rural areas, it also means there’s a longer response time by fire departments so by the time they arrive to put out a fire, you may have already experienced substantial losses.

Equipment breakdown insurance covers exposures that are normally excluded in other property insurance policies.

  • Machinery or equipment breakdown:

    Equipment Breakdown insurance is a form of property insurance. Its purpose is to insure against property damage, business interruption and spoilage losses that result from defined “accidents” to specified kinds of mechanical, electrical and pressure equipment.

MMI’s equipment breakdown insurance covers exposures that are normally excluded in other property insurance policies such as arching, mechanical breakdown and pressure vessels.

  • Building damage due to Hailstorms, Wind Damage and Tornadoes:

    While farmers can’t control the weather – which ranges from hailstorms to tornadoes, you can buy insurance to protect your building against the damage caused by these natural disasters.

  • Water damage:

    Apart from the threat of bursting pipes, freezing temperatures can jeopardize piping integrity. Our coverage extends to dairy farms, where piping is crucial for water and milk. Even if the damage is repairable, the potential disruption to business operations can result in significant setbacks in both time and money.

At MMI Insurance, we tailor our Farm Outbuilding Insurance to mitigate these risks, providing comprehensive protection against unforeseen challenges.

Protect Your Assets Coverages for Farm Outbuildings

Protect Your Assets: Coverages for Farm Outbuildings

When it comes to insuring your farm outbuildings, understanding the main coverage types is crucial for effective risk management. Deciding on the type and amount of coverage involves considering what you’d replace in the event of a total loss.

Our experts can guide you through this process, ensuring that your insurance aligns with the true value of your structures.

Equipment Breakdown Coverage

This optional yet crucial coverage protects against breakdowns or electronic circuitry impairments of essential farm buildings & contents. From robotic milkers to refrigeration units, it covers not only the damaged equipment, but also other property directly affected by the breakdown.

Farm Business Interruption

This coverage safeguards against loss of earnings due to necessary interruptions caused by covered perils damaging or destroying buildings. It helps cover the gap in income during the recovery period, considering operating expenses that may not necessarily continue.

Livestock Insurance

Protect your farm livestock from accidents and unexpected events that may impact your animals. This includes perils such as fire, lightning, windstorms and more.

Produce Coverage

Insure your farm’s produce against various perils like fire, theft, and collapse of buildings. Listing and describing your produce under the policy is crucial to protect your business in the face of unexpected events.

Machinery and Equipment Coverage

With a wide array of technology and equipment used in modern farming, this coverage protects assets from physical damage. Regularly reviewing policy values and notifying your broker of equipment changes is essential for optimal coverage.

Loss Of Use – Machinery

This coverage reimburses necessary extra expenses for renting substitute farm machinery and equipment in case of loss or damage to listed items due to insured perils. It ensures uninterrupted farming operations after a loss.

Farm Liability

Different from personal liability, farm liability is essential if you conduct farming operations on your property. It covers significant liability exposures, protecting your livelihood in the event of a lawsuit. Disclosing all operations and rented properties for farming is crucial for comprehensive coverage.

Safeguarding Your Agricultural Assets with MMI Insurance

When safeguarding your farm outbuildings, prioritize comprehensive coverage by assessing replacement values accurately and understanding co-insurance to prevent coverage gaps. These considerations form the foundation for safeguarding agricultural assets and ensuring a swift recovery. Don’t forget to insure the contents of your farm outbuildings as well.

Ensure the protection of your farm outbuildings with MMI Insurance. Our decades of experience serving Alberta farmers guarantee tailored insurance solutions to meet your unique needs. We can guide you through the process and provide personalized insurance solutions tailored to your farm’s requirements.

Contact MMI Insurance today at 866-222-6996 to safeguard your agricultural assets effectively.

Coverage is subject to policy wording, terms, conditions, and deductibles. Protection is limited to the perils, coverage, exclusions, and limits shown on the policy.

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