Standing Timber Insurance is now Available


The Davis-Garvin Agency, of Columbia South Carolina, has developed a standing timber insurance program for privately owned managed timberland. The program was developed to fill the need for competitively priced insurance protection of timber assets. With this program, some of the risk normally associated with timber ownership can now be transferred to others.

 Insured Perils

 The policy insures against the risk of direct physical loss resulting from the following insured perils:



The standing timber to be covered under this program must be under an active management plan as prescribed by a forest products company, a consultant forester, state forestry agency, or similar concern. The management plan must include the most recent timber cruise. The majority of the timber stand should be composed of southern yellow pine. Fire breaks must be established and maintained.

Premium Basis

Premium is based on the timber’s value. For trees that have a merchantable value, the management plan or forester must determine the current value to be insured. Any payments for covered losses will be made based on the predetermined values in accordance with the provisions of the policy or the actual stumpage value, whichever is less.

For non-merchantable trees, the valuation is based on the actual cost of site preparation, planting, and maintenance costs plus 7 percent interest compounded annually.

Rates vary from $.65 to $1.25 per $100 of timber value.


Some of the advantages of this program are:

1. The availability of insurance allows the transfer of some of the risks associated with timberland ownership.

2. Makes leveraging of your timber asset easier since the timber’s value is insured.

3. May allow the timberland owner to make additional land purchased by borrowing against the timber values.

4. The premiums paid for this insurance coverage may be deductible for tax purposes.

For a detailed review of insured coverage’s, rates, and application information contact The Davis-Garvin Agency at 1-800-845-3163 or 1-803-732-0060. Or send a request to P.O. Box 21627, Columbia, SC 29221.