Imagine devoting time, financial resources onto a farming business you had been tending to. You grow your livestock and crops; use your expensive or irreplaceable equipment and then a natural disaster or an unprecedented event hits. Farm and Ranch insurance may just be what you need.
Farms are insured once you have invested in it: the more risks it has, the more protection for it you should avail. Many farm owners have insurance policies that have replacement cost value or RCV. This is when the insured item’s value would be the cost of replacing when it is damaged. If it is loaned, equipment that you will be insured, the lender will be named on the insurance policy.
Insurance coverage is the amount of risk or liability being covered issued by an insurer in the event of unforeseen accidents or damage. Understanding this concept, we should emphasize that farming has many aspects in which insurance is key to maintaining it. In the formulating of your future farm insurance, you must take into concern the particular needs of your property. Customizing your farmers’ insurance policy is a crucial step if you are to avail one.
Ask yourself, which has the most risks? Which are the most difficult to replace/repair should they be damaged? And more importantly, which are the most highly-functional and difficult to maintain? Most farming insurances are highly customizable and you could specify or generalize your insurance coverage in order to widen or narrow down your policy details according to what suits your needs.
Farm insurance covers personal property related to your farming operations: your machinery or equipment, your livestock or crops, as well as your farm products. Farm machinery and equipment are an important part of a typical farming business and need to be covered by insurance. Coverage of this area not only protects you, the policyholder, from any financial loss or damage of machinery and equipment due to covered perils but also saves you from any more financial losses that might fall under this category.
The expenses that would be normally high-risk and are at high-stake of giving you losses will be covered should they sustain any damages from any specified perils you have covered them for. For example, your tractor or other heavy and otherwise expensive equipment be damaged by flood, hail, or tornado, you, as an owner, will not have to be overly stressed out over how you are to replace or repair it since your insurance already has it covered. When it comes to livestock or crops, it is important to take note of what is most susceptible to damage. If it is livestock you might be covering for, chances are you might want to cover them in the event that they are injured or killed by any basic perils.
It is also important to note that you might want to add more specifications, such as covering the expenses or replacement cost if they are affected by accidental shooting or getting run over or dying of sudden livestock illness. There is a difference when it comes to covering your farm products and there are instances wherein only the stored products might be covered: seeds or grains that have been planted or grown in your farming property might now be insured.
If it is crops you are insuring, make sure to include the basic perils you can imagine in losses: damage due to hail, storms or sudden drought, pests, you name it. Typically, crop coverage requires a different policy in regards to its purposes, such as commercial insurances if the sales revenue goes past your current farming insurance policy’s income limit. Usually, customization goes far in covering potential losses you might experience in your farming business, except when you need an entirely different insurance policy for your crops or anything within your property that may not be always covered in the standard farmer’s coverage insurance.
Additionally, if you have hired hands, employees, to name a few, make sure to include them in your insurance policy, as well. Any liability there could be, such as an injury sustained while on your property, or using equipment that is your property, you might as well have them covered in the event of needing to support their hospital bills or any required medical care. The same goes for the circumstances in which you have the public or a considerable amount of people entering your farm.
This way, any additional compensation you may have to answer for is light and barely draining, no worries for both parties, so to speak. There are also more liabilities you should consider, such as pollution insurance, in case you are held accountable for contaminating any nearby wells, lands with any of the current equipment or chemicals you may be using; be it pesticide or fertilizer that when accidentally uncontrolled would cause major environmental damage, anything you might be liable for.
Covering for your fencing is also a concern if your farm has it. There are significant differences between barbed wires, electric fences, wooden picket fences or anything that may or may not already be damaged. It would be best to make sure whether or not it is covered in your farming insurance policy and see if they have to. Many instances include the insured suffering great losses just because they forgot to check that the damages they are to experience or have experienced are not included or covered in their current insurance policy; leaving them to have to replace the damaged equipment from scratch.
Indeed, it is better to be safe than sorry. Farming, whether a hobby or occupation, requires the utmost stability and assurance that only insurance and insuring it could possibly offer; it is a business wherein there is a high risk, but also a high reward. Success comes from successful planning, and with that being said, ensuring your farming paraphernalia, properties, is a necessity that will help you out, big time, when it comes to the time you have prepared and availed it for.
Got any questions? Don’t hesitate to ask us. We’ll make sure you get all the help you need in finding the right Farm Insurance.