It doesn’t matter if farming is your profession or your hobby, the fact is that there’s nothing more peaceful than working on your own land.
However, the land you own and love to work on needs to be insured. Whether you just sell your farm-fresh products to the local market, or you’re thinking of making your farm your full-time job, you must understand how farm insurance works so that you are in position of making the right decision when it comes to the protection of your farm property.
Here we discuss five such insightful facts about farm insurance that you might not know about. So continue reading and learn a thing or two about farm insurance.
1 – Standard Homeowner Policy Also Covers Few Farming Activities
If you treat your farm property as your hobby that you like attend to and have no intention of making money out of it, then there’s a chance that your standard homeowner’s policy might provide coverage to some of your farming activities considering your farm as your garden. But this coverage will not include farm outbuildings and farm equipment.
2 – Farming for Profit Would Require a Different Policy
Even if you take farming as a hobby, but you end up making sales out of it, then you would need a different farm insurance policy to ensure your farming assets. For instance, if you sell your farm products at a local market then you would want “hobby farm policy”. However, there are some conditions that apply to this kind of policy:
Coverage is of only a one farm
No employees must be working on the farm
It should be less than 500 acres
Total annual sales from the farm must be not more than $10,000
3 – Full-Time Farming Requires a Different Policy
If you’ve made farming your full-time occupation then the hobby farm policy won’t be enough. You’ll need a “farm owner’s policy”. This would include the farm property, liability coverage and a lot more. In order to better protect your property, the basic policy must be endorsed with modifications as per the needs of your farm.
4 – Limitations on Commercial Structures
Homeowner insurance policies do not provide coverage to commercial structures. However, hobby farming and farm owner’s policies do not have such limitations. If a farm building is being used to generate revenue then it’s contradictory to the conditions specified in the homeowner’s policy. In such circumstances, the building is considered a commercial building and will not be covered in the policy.
5 – Special Coverage for Livestock
The special coverage for livestock depends on the kind of animals you have on your farm. Although, livestock insurance is like crop insurance, but the value of the animals that you have on your farm will impact the policy’s conditions. Individual coverage is better if you have higher-valued animals, and blanket coverage is advised if you have low-value animals. Blanket coverage will also ensure farm equipment and structure as well in one lump sum amount.
If you consider your farm to be more than just a piece of property, then it’s time you should consider insuring your life’s work. Make sure your family legacy is well protected by the most suitable farm insurance policy today. Contact C.K. Ash Insurance for further information and detailed guidelines regarding farm insurance. We are always proud of offering our clients the best farm insurance options that secure their interests.