Whether it’s for a farm, commercial facility, or a garage, farm buildings in Pittsburgh are a significant investment for those that own them. Just like with a car or a home, a Pittsburgh farm building needs to be properly insured. Choosing the proper insurance coverage for your structure depends heavily on what the building will be used for. This article will provide you with some advice on choosing the right coverage for your new pole building in Pittsburgh.
If your new building shares a lot with your current home, your homeowner’s policy can cover a structure that is up to 10 percent of your home’s value. Homeowner’s insurance is typically used by many people who own a small post frame garage in Pittsburgh. For larger buildings, especially if your pole barn is used for farm use, it will need to be covered under a farm insurance policy. If your structure is not being used specifically for agricultural purposes, you may need to add a commercial insurance policy.
An actual cash value policy (ACV) will cover the building’s replacement value minus depreciation. A pole barn’s age, condition, and how well it’s been maintained are all significant factors in determining a building’s depreciated value. Most older farm buildings in Pittsburgh depreciate at a rate of 1% per year on materials.
Another insurance option for Pittsburgh farm buildings is a replacement cost policy (RCP). The difference between an RCP and an AVC policy is that an RCP will pay for the costs to replace an agricultural building, but it does not take depreciation into account. An RCP will pay up to the full limit of the policy if necessary. If the cost to replace the structure exceeds the policy limit, then you, as the building owner, will need to pay for the difference.
If you are concerned about premium amounts for an ACV or RCP, the two dollar amounts should be about the same. However, many people opt for an ACV policy for new Pittsburgh farm buildings, while an RCP is typically the smarter choice for an older structure.
If you are thinking about adding a new structure to your property, whether it’s a garage hobby shop or new horse barn, MQS Structures can make it happen. Our custom horse barn builders in Pittsburgh will work with you to ensure your new building is built to the exact specifications to fit your needs.
To get started, give us a call at (855) MQS-3334 or contact us online for a free estimate.