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. Because timber sits outside for years before harvest, it is often paired with commercial property insurance to protect sheds, equipment, and processing buildings on the same land. Growers who also raise row crops alongside timber may want to look at revenue protection crop insurance to cover income losses on the other side of their operation.
