Insurance Cover - Common Misconceptions Our staff encounter many farming customers during the course of a year and unfortunately, there are many common misconceptions regarding their insurance cover and terms and conditions which apply to all policies. Some of the most common, with an accompanying explanation, are: Sums Insured Many believe that they only need to insure their livestock for the maximum amount they could lose in a claim... However, when calculating the Sum Insured this should reflect the maximum value at risk at any time. For example where livestock is at more than one location the total value at all locations must be declared. Failure to insure for the full amount can have serious consequences in the event of a claim.  For example, if the sum insured chosen is £100,000 and the total value at risk is £200,000 - should a claim occur the insurers will pay only half the amount claimed.  Goods in Transit Motor insurance policies do not cover farm goods in the vehicle or livestock in trailers. Separate cover must be arranged for this, usually within the Farm Combined policy. Diversification Diversification activities must be notified to insurers. For example a standard farm motor policy covering tractors may also cover an excavator.  The cover applies when the vehicle is being used for Agricultural purposes but not when being used on building sites to dig foundations.   Cover, of course, can usually be given but the insurers must be notified. Motor Insurance Comprehensive cover does not automatically allow: A)   Any Driver cover B)   Business Use C)   Driving other cars cover When driving other cars, cover does apply but is not on a comprehensive basis so it is important to check who can drive the vehicle and the use allowed by the policy. Business Items within the Home Household policies only cover domestic goods, therefore business items such as cattle passports are not covered by the home policy.  However, Cattle passports can be covered under the Farm Combined policy. Vehicle Theft Insurance policies now carry a clause excluding theft cover when the keys have been left in the vehicle. This applies even where the vehicle is parked in the yard at the farm. Evidence of Loss In the event of a claim it is the policyholder’s responsibility to prove their loss and provide evidence (at their own expense) of the amount claimed. Generally claims must be reported within 30 days and typical examples of documentation to be provided are: A)   Crime reference number B)   Vets report / salvage voucher for livestock claims C)   Written repair estimates D)   Written estimates for replacement goods  Recommended Repairers / Suppliers Insurers often have their own recommended repairers for motor claims who can supply courtesy vehicles while repairs are being done.   Similarly they have arrangements with suppliers of electrical goods who will deliver a replacement item to the policyholder’s home.  A problem can occur where a policyholder uses a repairer / supplier not approved by the insurer which is more expensive than the insurers chosen supplier would have been.    Finally, the most important point to bear in mind throughout the insurance process is to always speak to us on 01228 406290 whether when arranging the cover or in the event of a potential claim as mistakes can prove to be very expensive and cause unnecessary distress.