Insurance
Farmers, have you experienced an increase in insurance premiums in recent years? Have any insurance companies declined to insure you?
You are not alone! Over the past two years, the farm insurance industry has had to deal with changing environment. As a result, many farmers have seen their premiums increased considerably.
Because it had been receiving an impressive number of cries for help from its members, the UPA decided to conduct a survey.
It learned that 6% of them were left without insurance. Others faced a significant increase in their premiums. For 20% of respondents, that increase amounted to more than 14%. Of course, this creates stress among farmers.
Insurance companies have had to deal with more, larger claims as well.
Insurers identify two issues that could explain the situation.
First of all, building collapses have been more frequent in recent winters due to climate change. In 2019, a report from the Mutuelle des Municipalités reported higher than normal snowfall. This had been trending for 3 winters already: heavier snow and ice loads are damaging structures.
Also, fires are more frequent. These are often of electrical origin. This means that insurance companies are becoming stricter, requiring that work and renovations be done by a licensed professional: farmers must now hire general contractors, master electricians, etc.
We recommend that you consider involving professionals with any major work, in order to avoid unpleasant surprises.
Are you concerned that your insurance premiums may increase? Perhaps you’re planning some renovations in the next few months? Talk with one of our brokers to find the best solution.
