To protect any farm or ranch, owners must purchase a well-crafted ranch and farm insurance policy that is designed to specifically protect their operation.
Every farming or ranching operation is unique, so it only makes sense that the policy needed to provide that protection must be expertly written by a farm insurance agency to reflect the perils faced by that operation.
Before accepting a generically written policy, this brief overview of how farm insurance agencies create the most protective policy should help.
What Are The Liability Risks?
The first thing to understand when seeking a farm insurance policy is that every operation deals with different risks depending on what the business does and how it is done.
So while every policy starts with the same basics that include coverage for farm buildings and most machinery, the rest must be added in as the policy is customized to fit the operation.
Liability is included in the base policy, but farm insurance agencies suggest carefully examining the risks covered and coverage amounts, then increasing coverage based on the different activities happening on the farm or ranch, who visits the farm property, products being produced for resale, and more.
What About Homes On The Farm Property?
Homes on farm properties must be covered by standard homeowners policies, although some personal property that is used for farming or ranching purposes might be covered under the ranch policy.
Vehicles must be covered under either personal auto or commercial auto policies unless they do not leave the farm or ranch, in which case they might be considered farm equipment.
In general, farm equipment refers to equipment like tractors, combines, rakes, pickers, mowers, and anything else owned by, and required to run the business.
What About Livestock on the Farm or Ranch?
Depending on the type of farm or ranch being insured, a farm insurance policy should be written to add livestock insurance as required, with a careful look at the different perils that can be added beyond death by natural disaster or disease.
Ranchers should take note as well that livestock insurance to protect herds and equine insurance to protect valuable horses are two different things and should be included separately as required.
What About Crop Insurance?
Crop insurance that pays benefits in the event of crop loss is recommended for crop farms, as is insurance that covers loss of sales value.
Farm products grown to use for the farm or produced for resale are also subject to specific mentions in a broad farm insurance policy.
What About Basic Exclusions?
In addition to knowing what is included in base farm insurance policies and what must be added, farm insurance agencies stress the importance of knowing what is not included as well.
Fencing is one farm expense that is not typically included in any base farm insurance policy, although it can be added to a custom one.
Get Help With Farm Insurance From an Experienced Farm Insurance Agency
Crafting a farm insurance policy that is affordable, while also being fully protective, requires the help of an experienced farm insurance agency that knows the right questions to ask to do so.
When insuring any ranch or farm, seek out an experienced local farm insurance agency that can help.