Blanket Coverage Pays Off After Barn Fire

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An ounce of prevention is worth a pound of cure. Indiana farmer Mike Black found that adage to be true when a barn fire swept through a barn at his farm. "We were real fortunate on insurance," Mike says. 

About three years before the barn fire, the Blacks had changed their insurance coverage. At the underwriter's suggestion, and without fully understanding the importance of the change, they opted for blanket coverage.

"We itemized all of our equipment and put a fair price on every individual piece," he says.

The policy covered the actual cash value of the equipment. That would prove to be a crucial feature, but again, one Mike didn't fully appreciate at the time.

"That kind of coverage is something most farmers don't ever think to do," he says. "And when we did the initial inventory, yes, it was a pain. We were thinking 'This is a waste of time. Why bother?'"

The reason for the bother was readily apparent after the fire. Although the family's insurer wanted to settle the claim immediately, the Blacks worked with an independent adjuster during the claims process.

"He told us to get a clipboard, go out to that barn and itemize everything in it, down to a box of six-penny nails. You're going to have to prove everything was there," Mike says. "Then, he said, you go out and get estimated values on everything, see what it would cost to replace it."

It was, Mike admits, a time-consuming process.

"We did a lot of legwork. The fire was in April, and we didn't settle until November," he says. "But in the end, we got a very, very substantial amount. It more than doubled the company's initial settlement offer."

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