Agricultural Buildings & Farm Property Insurance
Farm buildings are often large, open structures holding combustible material, sited well away from the nearest fire station and frequently left unattended at night. A barn of hay or straw can be lost in a single evening, along with the machinery parked inside it, and fire service access along a farm track and water supply on a rural site can both affect the outcome.
The buildings themselves vary enormously. A modern portal frame grain store, a Victorian brick threshing barn, a timber pole barn and a mid twentieth century steel shed with an asbestos cement roof all stand on the same farm, and an insurer will want to know about each one rather than a single total value.
Diversification changes the risk. A redundant barn converted to holiday lets, a farm shop, a wedding venue or a storage unit let to a local business brings the public, guests and tenants onto a site that was rated as working agriculture. Insurers need to know, and some of these uses will be written separately from the farm itself.
Agricultural risks are often placed with specialist farm insurers who understand crops, livestock and machinery. We can advise owners on insuring the buildings, the liability that comes with owning farmland and the income tied to them, and help find the right market where the farm needs specialist underwriting.
Common claims and risk exposures
The exposures that produce claims in this trade, rather than a generic list.
Hay, straw and stored crops
Hay baled with too much moisture can heat and ignite on its own, sometimes weeks after it was stacked. Straw stacks and open fronted barns are also a frequent target for arson. Insurers often ask where hay and straw are kept, how far from other buildings, and whether stacks are separated.
Older buildings and asbestos roofs
Many farms have mid century buildings roofed with asbestos cement sheets. After a fire or storm the clean up becomes a licensed or controlled removal job with its own cost, and a damaged roof can contaminate crops, feed and the land around the building. Debris removal limits need to reflect this.
Machinery, fuel and workshops
Tractors and harvesters parked in a barn overnight, diesel tanks, workshops with welding and grinding, and battery chargers all bring ignition sources close to stored crops. Grain dryers are a recognised fire risk during harvest, when they run for long periods.
Public footpaths and visitors
Rights of way crossing farmland bring walkers into fields and yards. Livestock, particularly cattle with calves, can injure people using a path, and there are rules restricting certain bulls in fields crossed by a public right of way. Gates, stiles, slurry lagoons and yards all generate occupiers' liability exposure.
Diversified use of farm buildings
Holiday lets, farm shops, livery yards, event use and commercial lettings put guests, customers and tenants on site. Each changes the fire, liability and income position of the building, and a policy written for agriculture may not respond to a use it was never told about.
The cover we arrange
We arrange insurance around the property, its use, construction, occupancy and ownership structure. The cover available will depend on the individual risk and the terms offered by insurers.
Farm buildings
Barns, livestock buildings, grain stores, machinery sheds and outbuildings, scheduled individually or in groups. Older buildings with no economic use may be insured on an indemnity or reduced basis rather than full rebuild.
- Buildings scheduled with individual sums insured
- Reinstatement or indemnity basis by building
- Debris removal, including asbestos
- Fixed plant such as grain dryers and bins
Contents of the buildings
Stored crops, feed, fertiliser, tools and fixed equipment held in the buildings. Machinery and vehicles are usually insured separately, and livestock under a dedicated section, often with a specialist farm insurer.
- Hay, straw, grain and feed in store
- Fertiliser and agrochemicals
- Workshop tools and equipment
- Seasonal increases at harvest
Property owners and occupiers liability
Injury to walkers, visitors, contractors and trespassers arising from the land and buildings. Liability for livestock straying onto a road or a neighbour's land is a recognised farm exposure and should be confirmed in the wording.
- Public rights of way across the land
- Livestock straying or causing injury
- Contractors and visitors to the yard
- Limits typically £5m or £10m
Diversified income
Rent from let buildings, income from holiday lets or a farm shop, and the liability that comes with each. These may be added to the farm policy or written separately, depending on the size of the activity and the insurer's appetite.
- Loss of rent on let barns and units
- Holiday let and farm shop income
- Liability to guests and customers
- Indemnity period for rural rebuild times
Employers' liability
Employing farm workers, seasonal staff or family members on wages brings a legal requirement for employers' liability insurance. It can be arranged where required, subject to the policy terms, and agriculture is a class insurers rate carefully.
- Permanent and seasonal workers
- Family members on the payroll
- Machinery and livestock handling
- Subject to policy terms
What an underwriter will ask
Having these to hand shortens the process considerably, and usually improves the terms.
- A schedule of buildings with construction, roof type, age, use and condition
- Where hay, straw and other crops are stored, and the distance between stacks and buildings
- Machinery storage, fuel tanks, workshops and any hot work carried out
- Grain dryers, their supervision during use and their maintenance
- Public rights of way across the holding and how livestock are managed near them
- Any diversified use: holiday lets, farm shop, events, livery or commercial lettings
- Distance to the nearest fire station and water available on site
- Previous fire, storm and liability claims, and any arson in the area
What affects the cost of your insurance?
The main factors insurers consider when assessing the premium.
Construction and age of buildings
Modern steel portal frame buildings in good repair rate more favourably than timber or ageing structures. Asbestos roofs and buildings with no current use can reduce the basis of cover available.
What is stored and how
Large quantities of hay and straw, particularly stored inside or next to other buildings, push the rate up. Separating stacks and keeping machinery out of crop stores helps.
Location and fire service access
Remote sites far from a fire station, with no hydrant or reliable water supply, are priced on the likelihood that a fire will run its course before help arrives.
Diversification and public access
Guests, customers and events add liability and change the fire risk. Rates reflect the scale of the activity, the number of visitors and how the buildings used for it have been converted.
Conditions and exclusions to consider
Terms vary between insurers, so treat these as the questions to ask rather than a description of any one policy.
Undeclared diversification
A barn now used for weddings or let to a business has a different risk profile from an agricultural store. Where the insurer was not told, the cover may not match the use, and liability to guests or tenants may fall outside the farm wording.
Spontaneous combustion conditions
Some policies set conditions about how hay is stored or limit cover for crops that heat in the stack. Check whether heating of the stored produce itself is covered, as well as the fire that results.
Buildings in poor repair
Storm damage to a roof already missing sheets, or a collapse of a building with corroded steelwork, may be treated as a maintenance failure. Insurers may survey older farm buildings and exclude those they consider derelict.
Livestock and machinery
A buildings and liability policy does not automatically include livestock, tractors or self propelled machinery. These are usually separate sections or separate policies and need their own sums insured.
Common questions
Do I need a specialist farm insurer?
Often it helps. Farm insurers understand crops, livestock, machinery and seasonal values in a way a standard commercial market may not. Where the holding is mainly let buildings or diversified use, a commercial property policy may suit some of the buildings better, and we can advise which approach fits.
Are old barns worth insuring at full rebuild cost?
Not always. A traditional barn with no current use may be insured on an indemnity or reduced basis, and a listed or heritage barn may need full cover using traditional materials. Decide building by building, based on whether you would actually rebuild it.
Someone was injured by cattle on a footpath. Am I liable?
It depends on the circumstances, including how the animals were managed and what warning was given. Farmers can face claims from walkers on rights of way, which is why occupiers' liability and livestock liability should both be confirmed in the policy.
I have converted a barn into holiday lets. Does my farm policy cover it?
Only if the insurer has agreed to it. Holiday lets bring paying guests, fire safety duties and loss of income, and many farm policies need an extension or a separate holiday let policy. Tell the insurer before the first guest arrives.
Does the policy cover asbestos removal after a fire?
Debris removal is usually included up to a limit, but asbestos clearance can be expensive and may exhaust a standard limit quickly. Check the limit and whether it extends to contamination of land and stored crops around the building.
How do I get a quote from True Risk Solutions?
Call 01304 262880 and speak to a broker, or email info@truerisksolutions.co.uk with what you do, what you need cover for and a phone number with the best time to call, and a broker will call you back. We need a phone number to quote, because the cover and the price depend on questions that are quicker to answer on a call than by email.
Speak to a specialist who understands your industry
Tell us about your business and the work you undertake, and we will come back to you with cover options built around it. Call 01304 262880, or email us with a phone number and the best time to call and a broker will ring you back.