• Wood lot and insurance: What is there to know?

    19 September 2018Christopher Johnson

    Breathing clean country air, working with your hands, getting away from it all, these are all good reasons to own a wood lot. Were you aware, however, that if you want your visits to the woods to remain a source of tranquil serenity, you should inform your insurer of the existence of this land? In order to adequately protect this property and your financial wealth, Assurances Multi-Risques offers you its best insurance tips!

     

    Wood lot: The importance of informing your insurer

    It is very important to immediately inform your insurer that you have acquired a wood lot. Why? Because such an acquisition can modify your insurance risk profile! Remember that insurers do not all have the same risk criteria concerning insurance coverage. Therefore, spare yourself the unpleasant surprise of having a claim refused because you were, unknowingly, not covered for your wood lot through your current insurance contract. Phone your insurance agent or broker, and make sure that you have adequate coverage for all your property. This will be well worth your trouble, guaranteed!

    Moreover, if you are earning income through wood cutting activities, contract work or leasing activities, be sure to inform your insurer. Once again, all insurers do not have the same acceptance criteria concerning professional activities.

     

    Wood lot: How to be well protected

    Imagine that a child hurts himself falling from an old shack on your wood lot or that a friend injures himself while cutting wood on your property. If you are not insured, the financial losses incurred could cost you everything that you own and endanger your financial future. One of the basics to consider when insuring your wood lot is civil liability that will protect you in case you are held responsible for involuntary damages to someone else. A home insurance contract usually carries a 2 million dollar civil liability clause. Should you increase this amount? Your insurance agent or broker will help you to determine what you should do.

    Concerning income from the wood lot, an insurer will often agree to add a special clause (often called a rider) to your insurance contract if revenues from the wood lot are small or nonexistent. If you generate important income from the wood lot, however, and your activities are more akin to those of a farm operation, you will probably have to contact an insurer specialized in farm insurance to obtain adequate coverage.

    Many other elements also come into play when insuring a wood lot. For instance, do you have a tractor, a garage, farm machinery or a cottage on this land? As we have mentioned before in this article, you should discuss your situation with your independent insurance broker so that he can find an insurance product that will adequately cover your needs. Thanks to this, you can continue to fully enjoy your little nook in the woods while your broker takes care of your insurance needs!