What You Should Know About Insuring Your Farm and Equipment
No matter how large or small your farm is, ensuring it is protected is vital. A farm insurance policy can cover a lot of different things all rolled into one package, but it is essential that you understand the coverage and work with a professional that can help put together a policy that is perfect for you.
Farm Insurance Coverage
Understanding what your farm insurance covers is a crucial first step in protecting your farm. Your home is part of the farm for many family farms, so it is essential that the house is covered on the insurance policy so that you do not need a separate homeowners plan.
Most farm insurance plans allow for this as well as covering the buildings and sheds on the farm, structures like silos, storage areas, and animal sheds or barns. Make sure you talk with the insurance agent about all the critical buildings that are on the land that could potentially suffer damage in a storm, fire, or another event so they can add them to the policy and make sure they are covered.
Crop loss is often not part of farm insurance plans because the government has a program to assist farmers with crop loss due to storms and other unforeseen incidents. Your insurance agent can further explain how that coverage works and where to apply for it when setting up your farm insurance policy.
Equipment Insurance Coverage
Your farm insurance policy can cover equipment such as tractors, combines, and planters. Still, it is critical that you go over everything you own and regularly use to keep the farm running and ensure it is put on the policy. Farm insurance coverage can be very flexible and tailored to your needs, but if something is overlooked and not listed, it could be challenging to get coverage for after something happens to it.
The equipment is often the heart of the operation, so if you have a machine down, you don't want to wait for the insurance company to decide if it is covered. It is better to ensure everything you need to run your farm is listed on the policy at the start, and your insurance agent can help you do that.
Livestock And Animals
Most farm insurance providers have policies that cover the livestock you have on the farm to replace animals killed in a covered event or accident. For a dairy farm that might mean lost cows, or on a ranch that could be horses.
When the livestock is critical to the operation, this coverage is vital, so make sure that you discuss the terms of the coverage and what loss is covered, so you know what you are getting.
