Standing Timber Insurance

Updated: 11 March 2024

What Does Standing Timber Insurance Mean?

Standing timber insurance is a policy for timber growers and farm owners. It covers financial losses incurred as a result of certain perils, like fire or lightning.

The premium is determined, in part, by the size of the land used to grow trees for commercial purposes.

Insuranceopedia Explains Standing Timber Insurance

Growing timber or trees with the purpose of selling them for financial gain is a complicated business. It requires time, labor, money, and the protection of specialized insurance to supplement the usual business coverage.

Standing timber insurance specifically covers trees that are meant to be sold in the future. When a catastrophe, like fire or heavy winds, damages the trees, the insurer pays the policyholder the amount equivalent to the stumpage value, or the market value of the trees.

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