Farm Insurance: Protect your investments with the right insurance!

February 22, 2021


RHI Agency Team

A farm represents growth and prosperity. However, in the time that we live in, disasters strike fast. This is why a Farm insurance policy is one of the best ways add coverage for your investment.

There are large varieties of farms in the world, small and large, organic and conventional, etc., and irrespective of the size, type, or product there is a huge risk to farming. The risk factors can be the weather, bugs, bad seeds, drought, or any other disasters.

As all these risk factors are not in the control of the farmers, it is very important to have the right insurance policy for protection, in case the harvest doesn’t go as planned.

Types of Farm Insurance policies

Farming is a vast sector and the bigger the sector the bigger the risks will be. Let’s have a look at a few of the farm insurance coverage plans that owners of the farming insurance must compulsorily have.

Dwelling or home protection: Most of the homes of the farmers are located on the same farmlands as they cultivate. Most of them even use their residents as a home office and carry out farm-related business activities there. But what will happen if the house becomes damaged beyond repair or burns down. The dwelling or home protection protects your home against such incidents caused by fire, hail, or windstorm.

Farm liability protection: Farms are usually very large and there will always be a need to employ one or more workers to carry out different activities. Imagine one of your farm workers gets hurt while working and need some time off to recover from the injury. Who will be responsible for his treatment costs and pay him during his medical leave?

A farm liability protection plan protects the insurer from losing his farm due to any liability issues like injury caused to a person on your farm property, hospital bills, medical payments, or legal defence.

Insurance coverage for Barn insurance and nearby small buildings: This insurance plan helps to protect any farming business-related outdoor buildings like sheds, barns, grain silos or garages.

Farm equipment coverage: as the name indicates this coverage plan helps to protect your supplies, farm equipment, and other machines used for farming. This is great as farming equipment is costly and does not come cheap. A single tractor alone can cost thousands of dollars and a breakdown of it can affect the farming business.

Some things to know about Farm insurance in the US

  • Some of the farming activities are covered under the standard homeowners’ policy but excludes things like farm outbuildings and farm equipment
  • You might need a different type of policy if you are carrying out farm activities for a profit
  • Each farming operation is different and farm insurance policy coverage is not standard
  • The farm policies do not cover your livestock and you will need separate policies for that
  • Some coverage plans will have restrictions on business buildings

Two optional coverages that you would like to include for farm insurance

Even though there are a variety of farm insurance policies available, these policies will not always cover some important aspects of farming that you wish to be under insurance. Two of the most important additional coverages are

  • Individual coverage – This coverage also goes by the name scheduled coverage and allows the insurer to pick any individual asset he owns and assign to it a specific amount of insurance. It is always better to schedule assets individually as you can put the right limit for assets of higher value.
  • Blanket coverage – This coverage is also known as ‘unscheduled’ and is developed to cover your farm’s entire property, from infrastructure to livestock. This coverage is insured in a single huge amount. While opting for blanket coverage, make sure that you calculate and list each of your assets correctly, so that you will not end up underinsured when you go to claim if any loss happens.

The insurance policies may change from time to time due to the rapid changes happening in the business sector and economy. But once an insurance policy is bought, you will be able to enjoy its benefits till it expires.

In the United States, the insurance policies and guidelines vary in different states. So you must make sure to visit a trusted insurance agency to know these subtle differences if you are moving your farm business across states. All the necessary farming details must be disclosed to the insurance agency so that they can customize an apt plan for you.

Make the right insurance choice

Farming can be done as a hobby, or for livelihood. All these have different farm insurance policies that can be customized to some extent depending on the need of the customers. Agencies like the RH insurance agency have years of experience in the insurance field and focuses on the betterment of the people while trying to make a profit.

If you wish to know about farm-related insurance policies and the customisations they offer, you can visit them during their working hours. These people have 20 different insurance companies working under them and can help you get rid of the headache of comparing quotes. The insurance agent after studying about your farm business will tailor the best farm insurance plan that will help you proceed with your farming activities confidently and protect you if something bad might happen.

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