Farm Insurance | What You Need To Know
Owning a farm is no easy feat. There are a lot of risks involved and the potential for devastating losses if something goes wrong. That's why farm insurance is so important. But what exactly is it? What does it protect you against, and what should you look for when shopping for the right coverage? Here's a breakdown.
What Is Farm Insurance?
Farm insurance is a type of property and casualty insurance that provides financial protection against risks associated with running a farm, such as damage to buildings, equipment, livestock, crops, and other property due to natural disasters or accidents.
Who Needs Farm Insurance?
If you own or operate a farm, then you need farm insurance. This includes farmers who grow crops or raise livestock, as well as those who run nurseries or greenhouses or manage small farms or ranches. In addition to covering physical assets like buildings and equipment, farm insurance can also cover lost income due to weather events like droughts or floods that damage crop yields.
What Does Farm Insurance Protect?
Farm insurance covers many aspects of farm life, including:
- Structures on the property, such as barns and silos
- Machinery and equipment used in farming operations, like tractors and combines
- Livestock and their feed supplies
- Loss of crops from natural disasters, such as a flood or freezing temperatures
- Tools used in farming operations
- Personal belongings stored inside a building covered by the policy
Farm insurance can also provide liability coverage if someone suffers an injury on your property or if your negligence causes damage elsewhere.
What Is Not Covered by Farm Insurance?
Farm insurance does not cover everything, however. Some events that farm insurance does not cover include:
- Damages caused by naturally occurring pests or diseases, such as a locust infestation. Locusts are considered part of nature's cycle and not an unforeseen event caused by human negligence.
- Certain types of animals, like show pigs that travel on the competitive circuit
- Certain activities, like hunting on your land
Read through all the fine print before signing up for any farm insurance policy.
What Are The Benefits of Farm Insurance?
Having adequate farm insurance can provide peace of mind knowing that you are protected against unexpected events that could cause significant financial losses. Additionally, depending on the policy you choose, you could receive cash payments for lost profits, which is especially important for farmers whose livelihood depends upon their ability to produce healthy crops each season. Finally, having farm insurance can provide access to legal counsel should any accident occur on your property, saving you legal fees if faced with a lawsuit.
Farm insurance is a must for any farmer looking to protect their livelihood from unexpected events beyond their control. By understanding what is covered and what isn't, farmers can rest a little easier knowing that they will have financial protection.
Contact an agent to learn more about farm insurance.