If My Home Is on the Property, Is It Covered Under Farm & Ranch Insurance?

Whether you operate an agricultural business or just a hobby farm, you know that homeowners insurance is not enough to cover your barns, fields, or livestock. For that, you’ll need farm and ranch insurance. 

But will farm insurance also cover your home? The answer is yes, though always make sure your farm insurance provider offers dwelling and structures insurance on the policy.

What Is the Difference Between Homeowners and Farm and Ranch Insurance?

Both homeowners insurance and farm and ranch insurance will cover your personal property in the event of a fire, theft, or certain natural disasters. But farm and ranch insurance (often simply called “farm insurance”) offers additional coverage for things like your outbuildings, fields, equipment, and livestock.

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Unfortunately, there is no such thing as a homeowners insurance policy that will cover agricultural property or equipment. If you own a farm or ranch, you’ll need the coverage that only comes from farm and ranch insurance.

What Does Farm and Ranch Insurance Cover?

Farm insurance provides coverage for a variety of agricultural needs, including:

• Farm equipment

• Farm structures and outbuildings

• Fencing and corrals

• Livestock 

• Horses

• Liability

Together, these coverage options offer protection for your property, animals, and even your crops. This can be particularly important for farmers who rely on their land and equipment to earn a living. 

Does Farm and Ranch Insurance Cover My Home?

Most farm and ranch insurance policies offer some type of coverage for your home. This is commonly known as “dwelling” or “structures” insurance. This can include your residential house, as well as:

• Silos

• Barns

• Cabins

• Outbuildings and storage facilities

Like a regular homeowners insurance policy, your farm and ranch insurance coverage will protect both your home and its contents from dangers such as fire, theft, storms, and acts of vandalism. Liability coverage is also provided in case someone experiences an injury on your property.

Do I Need Both Homeowners Insurance and Farm and Ranch Insurance?

Most farm and ranch insurance providers include dwelling coverage in their farm insurance policy. If so, you only need to purchase farm and ranch insurance and not homeowners insurance. 

However, in the event that your provider only covers your farm buildings (and not your residence), you either need to purchase additional insurance to cover your home or seek an insurance provider who offers comprehensive coverage for all your needs.

Always remember that while farm insurance will cover both your home and farmland, homeowners insurance is not enough on its own. Only a farm insurance policy will cover both your home and your agricultural property.

Bottom Line: Does My Farm Insurance Protect My Home?

If you already have farm and ranch insurance coverage, check with your provider to make sure your policy covers your residential dwelling. Chances are that your home is already covered. But if you don’t have the right coverage, it may be time to seek an insurance provider that can cover both your home and your farm.

Top 6 Ways to Customize Your Farm & Ranch Insurance Policy

Whether you tinker around a converted greenhouse out back or farm 5,000 acres to earn a living, you need farm and ranch insurance. However, finding a farm insurance policy that covers everything you need isn’t always simple.

An insurance policy does one thing: It protects you and your family against unexpected losses. But on a farm or ranch, those losses can come in many varieties, and there are just as many ways to build your policy.

Farmers and ranchers face distinct challenges and risks. No two farms are the same, so it’s important to work closely with a farm insurance agent to start with a basic policy and then customize it to meet your needs.

Here are the top six ways to customize your farm and ranch insurance policy.

1. Home and Personal Property

The first big item in your farm insurance policy will cover your home and its contents. It also will insure the grass and property within a certain distance of your farmhouse and provide liability coverage for any house guests.

2. Farm Buildings and Equipment and Machinery

Along with your home, you will have to account for all of the buildings (barns, garages, silos, etc.) on your property. You’ll also list equipment and machinery, such as trucks, tractors, and balers, used on your farm or stored in your buildings. 

Farm insurance covers farm buildings and their contents separately. Farming equipment is expensive, and insurance can prove useful when you need an unexpected repair or replacement.

3. Livestock Sold or Used on Your Farm

For many farmers, an important part of their business involves livestock raised to be sold, cows and sheep that need to be herded, or horses ridden to round up other livestock. 

You can customize your livestock coverage to the specific needs of your farming operation, including equine insurance that addresses horses’ particular needs.

4. Liability Insurance

Another item on your list for farm and ranch insurance should be liability coverage. Even the most seasoned farmworkers can suffer accidents and injuries around vehicles, machinery, and livestock. Liability coverage can help keep your farm safe from financial setbacks if a worker, customer, or visitor is hurt on your farm or ranch.

5. Umbrella Liability Insurance

One potential customization to your farm and ranch insurance is liability coverage beyond the limits of your auto and home insurance. Typically, umbrella liability coverage options range from $1 million to $5 million, but larger coverage limits are available up to $10 million.

6. Crop Coverage

If you grow spices, herbs, vegetables, or fruits to sell, consider purchasing crop coverage. Basic farm insurance policies don’t cover the produce you grow to sell for income. However, this coverage can be purchased separately.

An Agent Can Help Set Your Priorities for Coverage

These are the top six ways to customize farm and ranch insurance, but you might consider even more, depending on your farm operation. A site visit from your farm and ranch insurance agent can help you decide what type of coverage will meet your needs.

Top 6 Reasons Farm & Ranch Insurance Is Better Than Home Insurance

You know that home insurance protects your home and everything in it. But if you have a farm or a ranch, there’s more than just a home to protect — you want coverage for your livestock, outbuildings, fencing, equipment, and more. Farm insurance covers your home and everything else, too. Here are six reasons farm and ranch insurance is better than home insurance.

1. Offers Expanded Liability Coverage

A home insurance policy offers personal liability coverage. This means that if someone is injured on your property, your insurance policy can pay for their medical bills, any legal costs associated with the event, etc. Insurance for your ranch or farm also covers personal liability, but it can also include a large range of different kinds of liability coverage:

• Equine liability coverage

• Farm liability coverage

• Chemical drift liability coverage

• Farm product liability coverage

However, farm insurance policies are highly customizable. If you’re choosing a policy, make sure it includes the different kinds of liability insurance you may need.

2. Safeguards Your Income

If you farm full-time, your income is tied directly to your crops and livestock. You may suffer unexpected financial hardship if you lose crops or livestock due to disease or theft.

A quality farm insurance policy can grant you the peace of mind of knowing that your income is protected. If your crops and livestock are insured as part of your policy, the insurance company will be able to compensate you.

3. Protects Valuable Equipment and Machinery

It’s important to make sure you have thorough coverage for your crops and livestock. But your equipment and machinery are just as important to a successful farming operation. 

If you have coverage for tractors, irrigation systems, and other key pieces of equipment, you can promptly repair or replace them. Even if you have a small hobby farm, home insurance won’t cover farming equipment.

4. Covers Most Types of Outbuildings

A home insurance policy can sometimes cover select outbuildings (like a small storage shed). However, it won’t cover barns and other buildings that are part of your farm’s daily operations.

As you may already know, the cost of repairing a damaged barn can be comparable to the cost of a home repair. The right farm insurance might save you a significant amount of money.

5. Allows for Very Specific Coverage

An insurance policy is customizable to an extent. But because there’s so much variation from one farming operation to another, farm insurance tends to be more customizable than home insurance.

6. Protects Your Home in the Same Way Home Insurance Does

If you aren’t too familiar with the world of insurance, it might seem like you need both home and farm insurance. However, farm and ranch insurance is essentially an expansion of a home insurance policy, so it protects both your home and your business.

Farm and Ranch Insurance: A Sure Way to Protect Your Investment

There’s always uncertainty in the business of farming. But when you choose the right farm insurance policy, you can safeguard yourself and your family and find peace of mind.

Top 6 Reasons Farm & Ranch Insurance Is Better Than Home Insurance

You know that home insurance protects your home and everything in it. But if you have a farm or a ranch, there’s more than just a home to protect — you want coverage for your livestock, outbuildings, fencing, equipment, and more. Farm insurance covers your home and everything else, too. Here are six reasons farm and ranch insurance is better than home insurance.

1. Offers Expanded Liability Coverage

A home insurance policy offers personal liability coverage. This means that if someone is injured on your property, your insurance policy can pay for their medical bills, any legal costs associated with the event, etc. Insurance for your ranch or farm also covers personal liability, but it can also include a large range of different kinds of liability coverage:

• Equine liability coverage

• Farm liability coverage

• Chemical drift liability coverage

• Farm product liability coverage

However, farm insurance policies are highly customizable. If you’re choosing a policy, make sure it includes the different kinds of liability insurance you may need.

2. Safeguards Your Income

If you farm full-time, your income is tied directly to your crops and livestock. You may suffer unexpected financial hardship if you lose crops or livestock due to disease or theft.

A quality farm insurance policy can grant you the peace of mind of knowing that your income is protected. If your crops and livestock are insured as part of your policy, the insurance company will be able to compensate you.

3. Protects Valuable Equipment and Machinery

It’s important to make sure you have thorough coverage for your crops and livestock. But your equipment and machinery are just as important to a successful farming operation. 

If you have coverage for tractors, irrigation systems, and other key pieces of equipment, you can promptly repair or replace them. Even if you have a small hobby farm, home insurance won’t cover farming equipment.

4. Covers Most Types of Outbuildings

A home insurance policy can sometimes cover select outbuildings (like a small storage shed). However, it won’t cover barns and other buildings that are part of your farm’s daily operations.

As you may already know, the cost of repairing a damaged barn can be comparable to the cost of a home repair. The right farm insurance might save you a significant amount of money.

5. Allows for Very Specific Coverage

An insurance policy is customizable to an extent. But because there’s so much variation from one farming operation to another, farm insurance tends to be more customizable than home insurance.

6. Protects Your Home in the Same Way Home Insurance Does

If you aren’t too familiar with the world of insurance, it might seem like you need both home and farm insurance. However, farm and ranch insurance is essentially an expansion of a home insurance policy, so it protects both your home and your business.

Farm and Ranch Insurance: A Sure Way to Protect Your Investment

There’s always uncertainty in the business of farming. But when you choose the right farm insurance policy, you can safeguard yourself and your family and find peace of mind.

What Is an Act of God in a Farm & Ranch Insurance Policy?

Farms and ranches stand more to lose from “acts of God” than any other business. Unforeseen weather disasters cause immediate damage to the products farms and ranches make. While other businesses can protect their inventory from these events, that’s not as easy with acres of crops or herds of livestock.

While every underwriter has different coverage standards, there are common understandings of what events qualify as acts of God. How do they relate to the fields of farm and ranch insurance?

What Is an Act of God?

Legally, an act of God is defined as an unpredictable natural event for which no human being could be held responsible. “Unpredictable” is the keyword in this definition. It separates acts of God from disasters that can be anticipated and managed.

Acts of God can take many forms in the context of farms and ranches. Periods of heavy rainfall or high winds can devastate crop fields. Tornadoes can upend barns, equipment, and other farm structures. Over the last few years, we’ve seen how extended droughts have crippled entire agricultural industries in the Western United States.

Farm and ranch insurance companies that account for acts of God do so in several ways. Many of them include or exclude specific acts of God in their policies. Premiums and deductibles to cover unexpected disasters may be different from other coverages (usually higher).

Because of their nature, assessing the risk of acts of God on farms and ranches can be quite complex. They don’t just suffer property losses — they also experience income and inventory losses.

Are Earthquakes and Floods Acts of God?

Many insurers exclude earthquakes and floods from the list of “acts of God.” True, you can’t blame any specific person for earthquakes or floods. However, they are, in the slightest of ways, “predictable.”

It comes down to geography. Certain parts of the world experience earthquakes more frequently than others. Other areas are mapped as floodplains that are much more susceptible to heavy rains.

Some farm and ranch insurance companies do include earthquakes and floods as acts of God. For the most part, however, those who run agribusinesses and want additional earthquake and flood insurance policies must purchase them on top of standard liability coverage.

How Are Acts of God Covered?

A typical farm insurance policy covers equipment, buildings, structures, feed, livestock, irrigation systems, and vehicles for their insured repair or replacement value. This usually includes acts of God like tornadoes, lightning strikes, winds, thunderstorms, tornadoes, pest infestation, wildfires, and drought.

Insurance policies typically distinguish crops from other farm and ranch assets. Most agribusinesses take out “multiple peril crop insurance” (MPCI) for events resulting in low harvest yields. The federal government regulates the purchase of MPCI policies, and farmers must buy them before growing season deadlines. 

Hail storms are typically covered in separate “crop-hail” policies. That’s because hail could decimate a particular area of a rancher’s farmland but leave others intact.

What Does Your Insurance Cover?

Insurance companies have different policies and limits on losses caused by acts of God. Farmers must examine their insurance documents carefully to see what’s covered and speak to their agents to make adjustments.

Sources:

https://www.law.cornell.edu/wex/act_of_god

https://www.iii.org/article/understanding-crop-insurance

4 Important Coverages to Have on Your Farm & Ranch Insurance

If you’re like most people, you insure every part of your life — your home, your vehicle, your health, etc. So if you’re a farmer or rancher, it’s only logical to insure your business as well.

But the world of farm and ranch insurance is much more complex than you might think. Each person’s exact coverage needs are different, but generally speaking, the following four are essential.

1. Liability Coverage

When you think of farm and ranch insurance, you probably think of insuring your crops or property against damage. But like other business owners, farmers and ranchers need liability coverage. This type of insurance covers you if a person is injured (or their property is damaged) while at your farm.

For instance, if a visitor is kicked by one of your horses and needs to go to the hospital, your liability insurance would cover medical bills. Similarly, if you operate a seasonal pumpkin patch and a child gets injured, liability coverage will protect you.

2. Crop and/or Livestock Insurance

If your livelihood primarily comes from the crops you grow or the animals you raise, you need crop or livestock insurance. This type of farm and ranch insurance will reimburse you for some types of losses:

• Losses of crops or livestock due to fire

• Stolen animals

• Animal death or crop loss due to unexpected weather events

• Animals killed or crops damaged during transit

Not all of these policies are the same — some may cover losses that others don’t. Always make sure to carefully read any policy you’re considering before you commit to it.

3. Outbuilding Insurance

You probably already have insurance on your home. But what about your barns, storage sheds, and other buildings? When you have outbuilding insurance, you can be reimbursed if important buildings are damaged and destroyed. Consider outbuilding insurance if you have any of the following:

• Barns

• Stables

• Crop storage sheds

• Structures for cold storage

• Motors, water pumps, and other outdoor structures used to operate outbuildings

Most standard outbuilding policies protect you against a wide range of damage. But many insurers also offer expanded coverage that will reimburse you for additional unexpected losses.

4. Tractor and Equipment Insurance

You rely on your equipment to run your business. So if your tractor, irrigator, or other key piece of equipment breaks down, you need to take action quickly. This type of farm and ranch insurance protects you if your equipment suffers unexpected damage from weather, collision, fire, vandalism, etc.

It’s also a good idea to protect your investment with farm equipment breakdown coverage. This type of policy will pay for necessary repairs if a piece of equipment stops working or needs a new part.

Protect Your Livelihood With the Right Insurance

A comprehensive farm insurance policy can make the difference between financial ruin and staying afloat in turbulent times. And while wading through the world of insurance can feel overwhelming at times, it’s an essential part of protecting what you’ve worked so hard to build.

5 Excellent Reasons to Have Farm Insurance

You have spent countless hours and poured thousands of dollars setting up your farm, but you might still question whether you are doing enough to protect it against life’s unexpected surprises. From natural disasters to animal illnesses, farm insurance can help you protect your investment. 

You should consider obtaining a farm insurance policy if any of the following descriptors apply to you:

1. You Want to Protect Your Feed and Livestock

Farm insurance policies can be customized to cover a wide range of livestock, such as:

• Pigs

• Goats

• Emu

• Chickens

• Horses

• Cattle

You can obtain individual coverage on high-value animals (such as show horses), take out a blanket policy on your entire farm, or insure a specific herd. Naturally, the type and level of coverage you select will have a direct impact on premium costs, so you can scale back or ramp up your level of coverage to ensure that the policy fits your needs and your budget. 

2. You Want to Protect Your Investment 

Farm insurance doesn’t just cover your livestock: It can also ensure structures like barns or equipment such as tractors. In other words, you can take out a policy on just about any piece of equipment or asset related to your day-to-day farm work. 

3. You Are a Full-Time Farmer

As is the case with any full-time job, you and your loved ones depend on the revenue you gain from your farm work, but despite your best efforts, plenty of things — natural disasters, inclement weather, or even just a simple run of bad luck — can put that source of income in jeopardy.

Farm insurance can help you make your farm more resilient to the whims of Mother Nature. You can cover equipment damage, livestock losses, and more, and depending on your provider, you may even be able to add supplemental income coverage. 

4. You Are Starting a Hobby Farm

Aside from career farmers, hobby farmers serve to benefit from farm insurance as well. While you may not be fully dependent on your farm for income, you have undoubtedly poured time, money, and sweat into making it a reality.

When disaster strikes, a quality farm insurance policy can help you recoup your losses and start fresh. A comprehensive plan can also protect you from liability in the event a guest or passerby is injured by one of your animals. 

5. You Need Liability Protection in the Event of an Injury

Liability protection is a must, especially if you engage in any agritourism and therefore allow visitors onto your property. Farm insurance with comprehensive liability protection can help you cover the costs of medical bills and legal fees. When choosing a policy for this particular purpose, ensure that the one you select provides an adequate level of coverage based on the size of your farm and how many guests you typically receive. 

Finding the Perfect Policy 

There are plenty of great reasons to obtain a farm insurance policy for your property, and it is great for operations of all sizes and specialties, from calf-cow businesses to hobbyists and everyone in between. 

That said, not all farm insurance policies are created equal, so when searching for a plan for your farm, make sure to explore all add-on options, including liability and livestock protection, to properly obtain the exact coverage you need.

Does Agriculture Insurance Cover My Loss if Crop Prices Collapse?

Farmers are known for being extremely hard workers. They also face unique challenges and risks. Agriculture insurance can protect farms, livestock, and equipment from loss and damage. And yes: agriculture insurance can protect against losses due to price fluctuations. 

Read on to discover how agriculture insurance works and how it can protect your farm.

What Is Agriculture Insurance?

Agriculture insurance is designed to cover the needs of farms, ranches, wineries, and nurseries. It also serves other commercial enterprises that focus on raising livestock or producing crops. 

The exact coverage varies depending on your insurance policy. Commonly, agriculture insurance will cover the buildings, animals, or equipment that constitute your farm or ranch.

Types of Agriculture Insurance

Farm and ranch insurance can be further divided based on the assets covered. For instance, common forms of agriculture insurance include the following:

• Farm owner insurance (protects the physical property)

• Farm livestock insurance (protects animals)

• Equine insurance (covers the needs of horses)

• Farm equipment insurance (protects machinery and tools)

• Farm dwelling and structures (protects homes, silos, barns, etc.)

• Farm liability insurance (covers you in the event of an accident)

• Crop insurance (covers crops)

These policies are designed to adapt to the needs of ranch owners, growers, and livestock-dependent farmers. 

What Does Agriculture Insurance Cover?

Depending on the policy, you can use agriculture insurance to cover such events as:

• Damage to your home, barn, or other exterior structures

• Damage or theft to equipment

• Medical care of livestock

• Accidents that occur on your property 

Certain types of equipment coverage can also provide financing for rental vehicles should a major piece of equipment be damaged or stolen.   

Can Agriculture Insurance Cover Crops?

The Federal Crop Insurance Program (FCIP) has been in place since the 1930s. Today, it’s administered by the USDA, Risk Management Agency (RMA). This program offers farmers coverage if their crops are damaged or destroyed due to events and disasters such as:

• Excess moisture

• Damaging cold

• Hail

• High winds

• Disease

Crop insurance can also protect farmers against price fluctuation that would impact a farmer’s ability to profit from the year’s crop. The FCIP is not, though, the only type of crop insurance commercially available. Many other agriculture insurance providers offer revenue protection coverage that protects against major shifts in price.

How Revenue Protection Insurance Works

Most commonly, crop insurance offers revenue protection based on historic yields, sometimes called the Actual Production History (APH). This is simply the historic (mean) average of your crop yields.

The crop insurance provider will use the APH as well as futures market prices to determine the revenue coverage guarantee. As a result, farmers can remain confident that even if prices should plummet, their income is secure through an agriculture insurance policy.

The Protection You Need

Farmers play an essential role in the food supply chain in the United States. For that reason alone, they deserve all the protection they can get. And with the right agricultural insurance product, growers can find protection even if crop prices collapse.