Farm insurance is like a homeowner’s policy, except it pools residential, business, and liability protections into one comprehensive package. It also provides compensation for living expenses since most farmers and ranchers derive the bulk of their income through farming and ranching activities. There are no two farms or ranches that are alike, so farm insurance can be customized with plenty of add-ons to fit the individual needs of each property and property owner.
Farm insurance starts with two basic types of coverage. Dwelling coverage protects the home from damage caused by inclement weather or theft. Farm liability coverage protects against liability claims and legal defense bills. Additional options include:
• Crop and livestock coverage
• Barn and outbuilding coverage
• Loss of business income and workers’ compensation coverage
• Equipment and commercial vehicle coverage
Commercial vehicle coverage will not cover your personal vehicle that you do not use for farming or ranching activities. You need to have regular auto insurance for your personal vehicle.
There are no standard farm insurance policies. An insurance agent will come to your property and take an inventory of your property before offering a quote. They will consider:
• The size of the property
• The number and size of all the farm structures
• The size of the residence
• The current revenue
• The inventory such as equipment, livestock, and crops
Farm insurance policies can be adjusted if there are changes to the property, inventory, or farm structures. The insurance agent should be contacted when these changes occur.
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