Do you need coverage that will protect you commercially and personally? Farm and ranch insurance covers your home, personal liability, and possessions like livestock and machinery.
Farm and ranch insurance is a unique form of insurance. It starts with simple barebones coverage and adds other options depending on your business and home. Usually, an agent is sent to inspect the farm and ranch and make sure your home is properly covered.
Insurance companies allow you
to customize your coverage. Nationwide’s Agribusiness farm insurance permits policyholders to pick up to 12 coverage categories. The policyholder can add broader coverage to include bursting water pipes, power surges, detached garages, plants, trees, lawn, and shrubs. However, the broader coverage does not include trees of commercial use and items far from your home. Also, the claim limit per tree or shrub may vary or be set based on a percentage of the home coverage.
Furthermore, a farm insurance policy covers your personal property directly linked to ranch or farm operation. You can categorize it into equipment and farm machinery, livestock, and farm products (seed, silage, fertilizer, pesticides, and animal feeds). You can choose the coverage best for you and leave the other options. Many people use endorsement and floaters. Check the categories below:
Firstly, this covers your livestock if they are injured or killed. You can get an additional coverage for other perils likely to happen to your animals. This may include a flu or epidemic, an animal being killed by accidental shooting or attacked by wild animals, or a flood. On the other hand, insurance companies use special adjusters for animals like horses and equine animals. The policy holder can choose from the list of purchasable options to cover them. Coverage options for horses include: mortality, theft, medical expense, surgical expense and loss of use of coverage. This means that you choose the coverage based on what you use the horse for, which is also how the price is determined.
Farm Machinery and equipment
This particular coverage protects your machinery and equipment from damage or loss. It covers cotton pickers, combines, tractors, planters, threshers, hay rake, etc. Also, portable equipment, structures, fences as well as the truck can be added. It is very important to know that farm and ranch machinery is quite costly. For instance, only a tractor can cost up to $200,000. Insuring it is very important especially in an area where tornados are frequent. If you do not ensure your tractor, you will spend heavily to replace it.
Farm products include feeds, grains, and seeds of different crops, and so on. These products can only be covered if they are stored. Seeds that are still growing cannot be covered.
Farm Liability Coverage
Farm liability coverage is part of farm and ranch insurance. It covers property damage, medical expenses and bodily injury. It as well covers attorney’s fees related to covered incidents too. Sometimes, farm animals can stray and cause an accident, you will be held liable for this. Liability coverage is important.
Farm and Ranch Insurance does not cover the followings:
- Firstly, fencing is not covered under standard farm insurance since many farms have it. Insuring it alone can be quite expensive depending on the type of fence. You can decide to insure your fence or not.
- Secondly, farm machinery and equipment is only protected by perils explicitly listed in your insurance policy. All the ones not listed are not insured. Even if you insure your equipment, make sure to give it regular maintenance and care. The farmer can get different coverage for them. Also, if your property is to be insured against fire outbreak, you must have access roads to your home, a nearby pond. All these make it easier for you to lose less if there is fire outbreak.
Before getting a farm and ranch insurance, consider the followings:
Employees: Also, if you have employees who work on your farm, it is necessary to cover their potential liability conditions and workers’ compensation claims. Many states demand workers comp policy if you have 2 or more employees.
Additional Structures: this may include a stable, barn, or any other important structure. Certain agricultural buildings need special coverage. This may include an old garage now serving as a storage unit for your farm produce.
Livestock: Also, t is important to insure your livestock which generate income for you. If you have horses you use for work on the farm, they need insurance. What about cows on a dairy farm? Farm insurance gives protection to animals used to generate revenue for the farmer.
Finally, now that you know a lot about farm and ranch insurance, it is easier for you to decide if your farm or home needs it. Finally, I hope you find this very resourceful.