Think farm insurance is just for farmers with thousands of acres of corn, hundreds of head of cattle and barns filled with expensive equipment? Think again. Your small farm/ranch or hobby farm needs to be insured — and you shouldn’t rely on your homeowners insurance policy for protection. Here’s why:
1. A homeowners policy likely doesn’t cover farm assets:
Most homeowners insurance policies exclude business and farming activities, which means you may not be covered if a storm damages farm equipment or your beehives are stolen. It also may exclude farm buildings such as barns and grain silos, putting you at risk of having to cover expensive repairs out of pocket. To protect your investment, ask your insurance agent about adding coverage for incidental farming activities, or purchase a separate farm insurance policy.
2. You need liability protection:
What happens if a co-worker gets sick after eating eggs you sold at the office or an ornery goat bites a visitor? You need insurance to protect against farm-related liabilities. Depending on your farm activities, the liability protection offered in a farm insurance policy might be enough but additional policies, including product liability could give you the coverage you need.
3. You may need to reconsider your auto insurance:
In addition to auto insurance, you may need additional coverage if you’re using your vehicle for farm business — even minimally. So, if you load up your truck for the farmers market on Saturday mornings, talk to your agent about whether you need more coverage.
4. It can protect against loss of income:
You might not be making a full-time living from the farm, but it’ll hurt to lose farm sales because of covered damage to your building. Many small farm/ranch and hobby farm insurance providers offer coverage for loss of income.
5. Different setups require different insurance:
Not all farm insurance is created equal. Your insurance needs may vary if you live on the farm, own farm land or rent farm land. Ask your agent which policy is right for you.
Your insurance agent will ask about your farming activities and income to make recommendations about the right policy to provide adequate protection for your farm.