Farm building insurance help

squirrelchops

Hi all,

I have recently inherited a house but within the land attached is a big stone barn that one day I would like to renovate as a family home for myself.

Would it be prudent to insure this building..although unlikely to fall foul of fire as no services to it or flooding etc. If so how would I go about getting a valuation for it.....I am presuming off a valuation company?

Sorry to sound dense but dealing with empty property and one that is of agricultural, or has been is all new to me!

*MF*

Hi ...

1: I assume you mean a "valuation" for insurance purposes not a "sale valuation" - yes?

2: Is it prudent to insure - only you can ultimately decide that.

3: What risks might you be insuring against? This is the cover afforded by a standard policy for a building (Agricultural or otherwise)


Most policies cover damage to your home by:
Fire
Aircraft or things falling from them
Lightning
Subsidence, heave and landslip
Explosion
Falling trees or branches
Earthquake
Impact by vehicles or animals
Theft
Breakage or collapse of aerials
Riot and malicious persons
Escape of water from tanks or pipes
Storm and Flood
Escape of oil from fixed heating installations

4: How much do you insure for? I drew that list of cover from the link below. It also includes help on deciding the re-building costs - which may help you - at least to some extent - but there is obviously a difference in cost between rebuilding a house after damage and reinstating a stone barn without services.

Link here:

http://abi.bcis.co.uk/

Hope this helps ... a bit.

dacouch

Is the home you inherited a farm or a "normal" home that happens to have a stone barn attached?

squirrelchops

Well, the farm is in the process of being sold off hence I have inherited what was called the farmhouse (in reality a semi) as the original farmhouse was sold many years ago as was in a huge state of disrepair.

I therefore inherited the house and 5 acres on which the stone barn stands.

mattymoo

The problem you have is that most household insurers (DL, NU, More Than etc) will be happy to insure the house but will not cover the barn. They are not agricultural insurers and you cannot really describe the barn as an outbuilding as this would normally be a garage or tool store for instance.

I would approach NFU and AIUA (Agricultural Insurance Underwriting Agency) - part of Towergate to see what they can offer.
The barn may only be covered for Fire Aircraft Explosion (FAE cover) only, particularly if the farm is unoccupied.
For a valuation for insurance purposes (est rebuild cost) speak to the local valuer that specialises in agricultural work.

squirrelchops

Thank you for that. I thought the good old NFU would be a good place to start so you have affirmed that for me.

dacouch

They are more likely to offer FLEA Cover which is Fire, Lightening, Explosion and Aircraft plus Property Owners Liability. If you do not intend to rebuild the property if it is damaged in a fire then some companies offer Demolition and Property Owners Liability.

I agree with trying NFU and AIUA, if the building is not derelict and you use it as an outbuilding then it would be worth asking your Home Insurer as they may offer cover.

Debt_Free_Chick

squirrelchops wrote: »

Hi all,

I have recently inherited a house but within the land attached is a big stone barn that one day I would like to renovate as a family home for myself.

On a separate note, don't get your hopes up. It's incredibly difficult to get planning permission to convert agricultural buildings to residential use. Don't buy the urban myth that "farmers do this all the time and make a mint!" - it's simply not true.

When the time comes, speak to the planning department before you part with a single penny!

squirrelchops

Thanks debtfreechick.

I know already that there will be no change of use allowed for residential within the next few years as the local council has already set its development plan. It is no skin off my nose to keep hold of it so have many more years (hopefully) to try.