Introduction to Farm Insurance
Your farm is a valuable asset. Whether you are operating your farm as a hobby or as a business endeavor, you should consider getting it covered with the right insurance. Farm insurance can give you peace of mind that things will be covered if something goes wrong. Here are a few things you need to know about farm insurance.
You Can Amend Your Home Insurance to Include Farming Activities
Many people simply enjoy farming. If you look at your farm as something to work on in your spare time without earning extra income, you have the option to amend your home insurance policy to cover some of your farming activities. However, the coverage will be limited as home insurance policies generally exclude damage to farm equipment and buildings.
Farm Insurance Is Not a Standard Policy
Farm insurance is often wrongly assumed to be a standard policy with several types of predetermined coverage options. However, every farm has different variables, with unique farming operations that need special coverage according to your individual needs.
Coverage Options for Full-Time Farming
If farming is your primary source of income, you need to purchase a farm owners insurance policy. This policy covers all your personal property used to operate the business, including any farm machinery, equipment, and fertilizers. You are covered if any of these items are stolen or damaged. Your livestock is also protected if they are injured or killed.
Liability coverage protects your business if someone gets injured while visiting your farm or if your farming machinery damages someone else’s property. A farm owners insurance policy covers you against possible natural disasters as well, such as hurricanes and tornadoes. While researching for this policy, keep in mind that you may need endorsements based on the individual aspects of your business. You may also have to change the terms of your policy as your farming business evolves.
Beware of Limitations
Home insurance policies normally limit coverage on commercial structures. If you purchase a traditional farm owners insurance policy, you do not have to worry about possible limitations. If you are using your property in a way that exceeds the limits of your policy, such property may be classified as commercial property.
Funded by the US Department of Agriculture, livestock insurance is something to consider if you have several animals on your farm. Individual livestock coverage is a good option if you have many high-valued animals on your farm and you want your policy to reflect the animal’s market value. If you have horses on your farm, you can inquire about equine mortality insurance. The other option is blanket coverage. If you opt for blanket coverage, you can insure your entire farm property in one lump sum amount. However, make sure to take inventory of your equipment to avoid being under-insured.
While researching farm insurance, remember that the maximum payable depends on whether you choose individual or blanket coverage. The experts at Sausman Insurance Agency will guide you through the process and ensure that you find the right policy to protect your investment. To get started, contact us today!