Farm and Ranch Insurance Basics

Whether you grow corn or raise cattle, it is important to have the right coverage in place. Farm and ranch insurance can protect your farm home and its contents, farming personal property, structures and other buildings, and liability exposures.

Let’s break down the basics of what makes up a farm and ranch policy:

Dwelling coverage – Your personal home and its contents are protected against fire, lightning, windstorms, hail, and most accidental losses, including vandalism and theft.

Farm personal property – Coverage is extended to protect livestock, farm equipment, machinery, and feed.

Outbuilding / other structures – Structures that do not serve as your primary residence may be covered including barns, detached garages, storage sheds, machine shops, fences, barns, machine sheds, and other structures.

Farm income coverage – If your farm has a loss of income resulting from a covered cause of loss, you can be reimbursed for loss of revenue or farm rent.

Extra expense – Two forms of extra expense are available. The first will provide additional funds to help pay for increased expenses when your dwelling is uninhabitable (also known as additional living expenses or ALE). The second form will provide funds to speed up the return of your farm to normal operations after a loss.

Farm equipment breakdown – Coverage is afforded if a piece of farm equipment or machinery breaks down due to an accident or sudden failure.

Farm liability – Coverage for an accident, including defense and indemnity, that results in bodily injury or property damage to others for which you are held liable.

The above list forms the foundation of a farm and ranch insurance program. There are many additional coverage options available to help design a policy to meet your specific needs.

Farm and ranch insurance is a very specialized form of coverage. Make sure you work with an independent insurance agent who focuses on helping farm owners and has access to the most competitive insurance carriers.

If you are need of farm and ranch insurance, or simply looking to make sure you have the right coverage the most affordable premium, contact our office today.