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Last year was challenging for many Ohio farmers and farm insurers. Drought conditions caused considerable crop failure. Straight-line winds ripped through our state in the springtime, and tornadoes ravaged parts of Ohio in the fall.

Many insurers – including Nationwide – paid out more in farm claims and expenses than they received in premiums last year. In fact, for every $1 in premium that Nationwide received from farm insurance customers, the company paid out $1.29 in farm losses and expenses.

"We all know that storms happen, and there’s nothing we can do to control the weather," said Ryan Albers, senior underwriting staff specialist for Nationwide Agribusiness Insurance.

"As we looked at the reasons behind farm claims, however, we identified a number of loss causes that were not weather related. These are the preventable claims situations where we can focus our attention to avoid losses," Albers says.

"We noticed a large increase in the number of high-dollar structural fires – both outbuildings and dwellings," said Albers, who headed a fire claims research team that made these findings:

• Faulty electrical wiring was the number-one cause of fires both in barns and in homes.
• Unoccupied or vacant structures were frequent sites for fires.
• Many of the structures were found to have not carried adequate insurance valuations.

Albers outlined steps to reduce the risk of loss: "Check wiring and connections periodically for fraying, arcing, or deterioration," he suggested. "General house cleaning and tidying up often removes fire sources that can cause a tragedy."

Combine fires also are on the rise, Albers said. "A combine fire can be a devastating setback for a farmer. The most effective way to combat such a loss is to maintain a fully charged fire extinguisher onboard at all times.

"Nationwide customers can schedule a farm loss control visit from one of our specialists by contacting their agent," Albers offered. "This is a free, value-added service that will help you identify risks and take appropriate safety precautions.

"It’s critical that farmowners stay in touch with their agents to make sure policy values are in line with current conditions," Albersn said. "A lot can change in a short period of time, and we want to make sure all our customers are getting the coverage they need."

(The next article in this series will look at farm-specific loss control and claims adjusting for OFBF members.)