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Renting a Barn or Thinking of Renting a Barn?

As farming operations expand in Ontario, building a new agricultural structure for your operation may not be an option at this point. You’re wondering if renting a barn and housing your livestock there would be a better option, or even renting a shed to store your farming equipment.You’ve arranged to rent a barn from a farmer that is perfect for your needs.If any damage happens to the space you are renting, who is responsible for covering the costs of the damage?

The owner of the building has a responsibility to insure their building, BUT the renter of the building also has a legal responsibility to provide insurance for their own protection. The coverage you need to protect yourself is:

“Farmers Tenants Legal Liability Insurance”

This coverage provides protection to the farmer who rents or occupies farming structures and is legally responsible for damages to those non-owned structures.

The Owner – They need to insure the barn for direct loss or damage caused by an insured peril, such as if the barn were struck by lightning and burnt down.

The Renter – Since they do not own the barn, but they are occupying the barn and are legally responsible for damages caused by their negligence such as welding and causing a fire.

If coverage is not in place, the cost of repair may be an out of pocket expense, which could be very expensive!

Protect Yourself – To mitigate your risk, contact your Orr Insurance & Investment Broker and find out what options work for you.

 

Article written by Amanda Johnston, CIP, RIBO

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