Think farm insurance is just for farmers with thousands of acres of corn and herds of cattle? Think again. If you have a hobby farm or a small farm or ranch, you shouldn’t rely on your homeowners insurance policy for protection. Here’s how hobby farm insurance can benefit your operation.
What Is a Hobby Farm?
Hobby farms come in many sizes and varieties, but they generally have one thing in common: They aren’t used as a primary source of income. So, if you don’t rely on your farm to supply the income for your home and family, it’s likely your farm is a hobby farm.
What Does Hobby Farm Insurance Cover?
Hobby farm insurance is simply farm insurance customized to meet the needs of your hobby farm. Generally, farm insurance includes coverage for your property and liability coverage, but can offer additional protection depending on your farming activities. For example, if you welcome visitors to your hobby farm, you may need additional liability coverage.
Keep in mind hobby farm insurance won’t provide additional auto insurance coverage. If you’re using your vehicle for hobby farm business — even minimally — you may need additional auto insurance coverage. Talk to your agent about whether you need to adjust your policy.
4 Reasons You Need Hobby Farm Insurance
1. Homeowners Insurance Doesn’t Cover Your Hobby Farm
Most homeowners insurance policies exclude business and farming activities, meaning your hobby farm may not be covered if, for example, a storm damages farm equipment or your beehives are stolen. It might also not protect essential structures used for farm business, such as barns and grain silos, putting you at risk of having to pay for expensive repairs out of pocket. To safeguard your hobby farm, ask your Farm Bureau agent about adding coverage for incidental farming activities, or purchase a separate farm insurance policy.
2. You Need Liability Protection
What if someone gets sick after eating eggs you sold or an ornery goat bites a visitor? If you run an agritourism farm, you’ll certainly need coverage for your visitors. And you’ll need agriculture insurance to protect against farm-related liabilities. Depending on your hobby farm activities, the liability protection offered in a farm business insurance policy might be enough. But additional policies, including product liability, could give you proper hobby farm coverage.
3. Your Coverage Can Protect Against Loss of Income
You might not be making a full-time living from your hobby farm, but it can still hurt to lose farm sales if, say, a storm damages one of your buildings. Many small farm and ranch insurance providers offer coverage for loss of income.
4. You Need Customized Coverage That Matches Your Situation
Not all farm insurance is created equal. Your insurance needs may vary if you live on the farm, own farmland or rent farmland. Talk to your agent about which policy is best as you shop for hobby farm insurance. He or she will ask about your hobby farm activities and income to recommend the right policy, whether you have a large or small farm. Plus, your agent will perform an on-Site SuperCheck annually to ensure everything is up to date.
Different Coverage for Different Hobby Farms
Whether you’re hosting goat yoga classes or growing heirloom vegetables, your hobby farm is more than just a pastime. Connect with a Farm Bureau agent today to help ensure you’re covered.