Standing Timber Insurance

What Does Standing Timber Insurance Mean?

Standing timber insurance is a policy designed for timber growers and farm owners. It covers financial losses caused by specific perils, such as fire or lightning.

The premium is partly determined by the size of the land used for growing trees for commercial purposes.

Insuranceopedia Explains Standing Timber Insurance

Growing timber or trees for financial gain is a complex business that requires time, labor, money, and specialized insurance in addition to standard business coverage.

Standing timber insurance specifically covers trees intended for future sale. If a catastrophe, such as fire or strong winds, damages the trees, the insurer compensates the policyholder for the stumpage value—the market value of the trees.