What Affects the Farm Insurance Rates in Western Canada?
Here are some of the factors that affect farm insurance rates in Western Canada:
- The type of farm
- The size of farm
- Revenue of your farm
- If you do custom farming
- If you rent out any land to others
- The claim rate of your area
- The crime rate of your area
- The distance to the nearest fire station
- If you have damage prevention and mitigation devices, such as security alarms, water alarms, fire suppression systems, and sump pumps
- If your farm is located near a lake or river
- The type and construction material of buildings located on the farm
- The heating, plumbing, and electrical systems of the farm’s buildings
- The cost of rebuilding buildings on the farm
- The cost of replacing personal property, equipment, machinery and tools
- The number of employees
- Your driving record (and that of any employees)
- Your insurance history
- Your credit rating
- Your demographics
- Your insurance options including coverage, policy limits, and deductible
Remember that every farm insurance company calculates its rates a little differently. Your farm insurance broker can advise you on how to get the best rates.
How to Get the Best Farm Insurance
Here’s our advice on getting the best farm insurance in Western Canada when it comes to price and protection:
Work with an experienced farm insurance broker. They will advise you on the protection you need and take care of the price shopping for you.
Be honest. It is insurance fraud to lie on an application or misrepresent a claim. Being honest about your farm is the best way to get the right protection and have a claim to be covered.
Balance price with protection. Don’t sacrifice coverage for a lower price.
Implement mitigation measures. This can include emergency plans, processes that minimize risks, and more.
Install mitigation devices. This can include fire suppression systems, security and water alarms, sump pumps, and more. These devices can be eligible for discounts.
Upgrade your buildings, such as replacing older roofs and older electrical systems.
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Keep good records. Records can help if you ever have a claim
Choose a higher deductible. The higher the deductible, the more you’ll pay out of pocket for a claim. But your farm insurance rates will also be lower.
Bundle your insurance Many insurance companies offer a discount for having multiple policies.
Contact your broker if something changes You should also review your farm insurance with your broker at least once a year.