Some useful research from iFarm here, land, equipment and farmhouses continue to rise as the demand for green belt land increases.
iFarm Underwriting, Rokstone’s UK farm and agriculture specialist MGA, is warning farmers and rural insurance brokers that underinsurance is becoming an increasingly serious and costly issue across UK farms.
Its figures show that 1 in 10 farm property claims handled since October 2022 were significantly underinsured, with insurance cover falling short by an average of nearly 40%. In practical terms, this meant that farmers affected by underinsurance saw claim payments reduced by around 45%, leaving average shortfalls of more than £11,000 per claim, and in larger losses, gaps exceeding £30,000.
These findings are reinforced by independent research from valuation specialists Charterfields, whose 2025 Underinsurance Report found that 88% of UK properties surveyed were underinsured, with over a third insured for less than half of their true rebuild cost. Rural properties were shown to be particularly vulnerable due to non-standard construction, heritage materials, specialist labour requirements and rising rebuild costs.
Bridget Slade MRICS FAAV, Loss Control Consultant at Securus Risk Advisors, comments: “Many farmers know the term underinsurance, but few realise just how common it is, or how devastating it can be when a claim occurs. Traditional valuation shortcuts simply don’t work for farm buildings. Thousands of farms are unknowingly carrying insurance that isn’t enough and the financial shortfall doesn’t fall on the insurer, it lands on farmers. Ensuring your buildings are correctly valued protects not just the property, but the future of the farm itself.”
Adam Mawer, iFarm Technical Underwriting Manager, comments: “Our data shows very clearly that underinsurance isn’t a theoretical risk, it’s happening now, on real farm claims, and it’s costing farmers serious money. We’re seeing otherwise valid claims reduced simply because sums insured haven’t kept pace with the true cost of rebuilding modern and traditional farm buildings alike.”
iFarm highlights that underinsurance is often driven by outdated valuations, reliance on indexation alone, online calculators that fail to account for rural complexity, and confusion between market value and rebuild cost. For farms, reinstatement frequently involves specialist materials, skilled rural trades, difficult site access, planning constraints and longer rebuild periods, all of which significantly increase costs.
Mawer added: “Agricultural buildings are not standard commercial risks. From livestock sheds and grain stores to heritage farmhouses and stone barns, these assets need specialist underwriting and accurate rebuild assessments. That’s where expertise really matters, both at placement and at claim.”
As a specialist MGA dedicated to agriculture, iFarm, together with its inhouse risk advisory service Securus, works closely with brokers and farmers to ensure declared values properly reflect the true cost of reinstatement, helping to reduce the risk of average clause deductions at claim stage. The business encourages regular professional rebuild cost assessments, particularly following building works, material price increases or changes in use. This approach, together with iFarm’s powerful tech platform, ATOMX, has shifted the role of the underwriter from data processor to strategic risk expert, enabling insurers to better serve niche markets like rural and farming risks with tailored, efficient, data-informed solutions.
With construction inflation, labour shortages and rural rebuild complexity continuing to rise, iFarm warns that the underinsurance gap is likely to widen unless proactive steps are taken.
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