What Does Farm Insurance Cover?


Did you know that your standard homeowner’s insurance policy excludes anything farm related on your property? This includes the buildings, equipment, and the farmland. Without proper insurance coverage, you could face serious loss. This is where farm insurance comes into play.

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Keep reading to see what this type of insurance can cover for you.

Taking a Closer Look at Farm Insurance

Your farm insurance operates in much the same way as your homeowner’s insurance, except it does not exclude your farmland and outbuildings. Think of it like a combination of a homeowner’s policy and a business policy as it covers both your home and the farmland.

The basic coverage your farm insurance should include is as follows:

  • Certain areas of your home if used for business purposes (areas like a home office)
  • Outbuildings
  • Farm equipment
  • Tools
  • Machinery
  • Livestock
  • Feed

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For each of these categories, you can choose broad coverage or get specific with each item to make sure you have the coverage you need. For example, if you have excessively expensive machinery, you may want a policy that provides adequate coverage for it.

The Liability Insurance

No matter the type of farm insurance you choose, it will have liability insurance – it’s required. This covers you against bodily injury and property damage. It may also provide coverage for any legal expenses you incur as a result of someone getting hurt on your farm. It also covers incidents that occur off your property but as a result of your machinery or livestock.

What Farm Insurance Doesn’t Cover

Unfortunately, farm insurance will not cover everything on your farm. The most common exclusions include:

  • Fencing – This coverage could get costly since many farms have miles of fencing, so most policies exclude it altogether. If you want fencing coverage, though, you may have to get a specific rider for it.
  • Machinery in certain situations – The coverage for your machinery will be explicitly stated in your policy. Anything not stated in the policy will not be covered. For example, machinery that was not maintained will not be covered.
  • Accidents – If you (the owner) suffer an accident on the farm, your farm insurance may not cover it. Instead, you’ll need some type of disability coverage or other accidental insurance (or health insurance) to cover the incident.

It’s best to shop around with at least three agents to find the farm insurance that is right for you. It is not a one-size-fits-all approach. Each farmer will need different coverage based on their specific needs. Make sure you go over the specifics of your farm and what you intend to do with it with your broker so that you can make sure you get the appropriate coverage.

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