No two farms are equal. And it isn’t just a world of wagons and pitchforks anymore. A good farm policy should be highly customized to consider each of the following elements:
This is defined slightly differently by each provider. It’s important to make sure your policy matches the realities of your operations.
This might include dwellings, private use structures like gazebos, and specialized farm outbuildings like shops, barns and grain handling systems. If not carefully listed, you might overpay for the wrong coverage, or be under-covered.
Machinery & Equipment
An old tractor might need just basic coverage, but a new combine should likely have both replacement and loss of use. The specifics matter and you have options.
From fencing to farm water and sanitation systems, background things often escape a first look. A thorough check-list is important.
Produce & Livestock
If the retail value of your cows and crops is high enough, you might find it important to included them on your policy.
Loss of Income
This can come from interruptions to power, water, or the business in general. Make sure that you aren’t left exposed if things beyond your control get in your way temporarily.
Ask your broker about specifics based on your farm-type and geographic area. This may include add-ons such as pollution liability protection, or in the case of large family or corporate farms, director and officer liability coverage.
Things You Should Know
- Possible discounts available for: new home construction, age of policy-holder, claim-free history, a paid-off mortgage, and multiple policies.
- With modern tech, it’s important to include any investments in software and configuration with the hardware value. The incremental cost to your policy will be minimal, but these “forgotten costs” can add up if not included in your coverage.
- Anything edible that comes from your farm needs to be included in your liability coverage. If someone gets sick off of food that you send to market, you could be saddled with their legal fees and medical bills.