Insuring Your Fabric Storage Building: What Producers Need to Know

Insurance is one of the most frequently overlooked aspects of fabric building ownership. Many producers assume their existing farm policy automatically covers a new fabric building and its contents, but coverage gaps are more common than you might think. Taking 15 minutes to review your policy before installation can save thousands in the event of a loss.

Does Your Farm Policy Cover Fabric Buildings?

Most comprehensive farm insurance policies cover buildings and structures on the property, but the definition of what constitutes a “building” varies between insurers. Some policies specifically list covered structure types, and portable or temporary structures may fall outside those definitions. Fabric buildings — depending on how they are anchored and used — may be classified differently than permanent buildings.

Contact your insurance broker before installation and provide them with the building specifications: size, construction materials (galvanized steel double-truss frames, 750 g/m² PVC cover), anchoring method, and intended use. This gives them the information needed to confirm coverage or recommend an endorsement.

Replacement Cost vs. Actual Cash Value

Insurance policies typically offer two types of coverage. Replacement cost coverage pays to replace the building with a new equivalent regardless of the building’s age. Actual cash value coverage deducts depreciation, meaning a building with ten years of use would be valued at a fraction of its replacement cost.

For fabric buildings, this distinction matters most for the PVC cover, which depreciates over its service life. If your policy covers only actual cash value, a cover destroyed by a storm at year eight might be valued at only 30 to 40 percent of a new cover’s cost. Replacement cost coverage eliminates this gap.

Contents Coverage

The building itself may be the smaller part of the insurance equation. A fabric building sheltering $400,000 worth of farm equipment, $50,000 in hay inventory, or $100,000 in grain needs contents coverage that reflects those values. Many farm policies have sub-limits for specific types of property, so verify that your contents are covered to their full value.

Common Exclusions

Watch for exclusions that could leave you exposed. Common ones include wind damage above certain thresholds, damage from weight of snow or ice (though the steep peaked snow-shedding design of quality fabric buildings reduces this risk considerably), and flood damage from overland water. If your building is in a flood-prone area or exposed to extreme wind, ask about riders or endorsements that fill these gaps.

Liability Considerations

If your fabric building is used for any commercial purpose — storing inventory, sheltering client vehicles, or housing a business operation — liability coverage becomes important. A customer injured on your property or a neighbour’s property damaged by building components in a storm could result in significant claims. Your farm liability policy may or may not extend to commercial uses, so clarify this with your broker.

Documentation for Claims

The best time to document your building and its contents is before you need to file a claim. Keep copies of your building purchase receipt, installation photos, serial numbers, and a current inventory of stored contents with estimated values. Many producers photograph their building and contents annually during policy renewal as a simple documentation practice.

A few minutes of preparation and a conversation with your insurance broker can ensure that your fabric building investment is properly protected from day one.

Frequently Asked Questions

Can fabric buildings store hay effectively?

Fabric buildings are one of the most cost-effective ways to store hay. The PVC cover keeps rain and snow off your bales while allowing enough air circulation to prevent mould growth. Studies show that covered hay retains 95%+ of its nutritional value compared to outdoor-stored hay that can lose 25–35% to weathering. The ROI on covered storage often pays for the building within 2–3 seasons.

What size building do I need for hay storage?

Sizing depends on bale size and stacking method. For large round bales (5'×5'), you can fit approximately 3 bales per 100 square feet when stacked in rows. A 40'×60' building (2,400 sq ft) stores roughly 70–80 large round bales. For small square bales stacked high, you can store significantly more per square foot. Contact MAX for a sizing consultation based on your specific needs.

How do I prevent moisture in a fabric hay storage building?

Proper moisture management starts with site preparation: ensure your gravel pad has adequate drainage slope (2% minimum) away from the building. Stack bales on pallets or a gravel base — never directly on bare ground. Configure end walls for cross-ventilation to allow moisture to escape. In humid climates, leaving one end partially open provides excellent airflow without compromising weather protection.