"Mind the Gap" - farmers warned

Rapidly changing prices for stock, grain and fuel mean farms must review their insurance policies far more often than they have been used to, or risk being seriously out of pocket in the event of a claim, warns Cornish Mutual.
With many key costs and incomes soaring in the face of global economic concerns about oil and food, farmers could find the actual value of stocks on their own premises vary wildly from figures set out in insurance cover even a year ago.
Traditionally, farms have reviewed their sums insured on a periodical, usually annual basis. However, Cornish Mutual, which covers thousands of farms throughout the region, believes such an approach has become insufficient, and is now advising all farms to check their policies much more frequently.
“There is nothing more heartbreaking for all concerned than when a farm makes a claim and discovers, too late, that they're significantly underinsured,” says Cornish Mutual development manager Chris Ridgers. “Similarly, farms have no money to waste on excess insurance cover when prices fall. Either way, it is important to minimise the harmful gap between the real value and the figure insured.”
“Times have changed,” he warns, “and farms should now be reviewing their insurance regularly as a matter of course. However, with the price of crude oil fluctuating at such an unprecedented rate, even that may not be often enough.
“In reality, farmers currently need to keep almost a constant eye on the most changeable stock values on their farm. Typically, these include red diesel, domestic fuel, oil, grain, chemicals and fertilisers, and, of course, livestock.”
Chris Ridgers continues: “If farms have any problems or concerns over this issue, we have local insurance inspectors throughout the region, who would be very happy to visit and work with farmers to check that the risks and sums insured are appropriate.”
South West-based farms can arrange an insurance review with Cornish Mutual by calling 01872 277151 or 01392 824964, or find direct contact details for their local insurance inspector at www.cornishmutual.co.uk .