Protecting your home can have a much larger meaning if you have a farm. Whether you have a small family farm or a large commercial plot, making sure that you are safe from damage, flooding and natural losses is a priority. Your land, crops and livestock are not covered under traditional home insurance and should be protected by an appropriate farm policy.
A farm is considered a business and should be treated as such, especially with your insurance. So what kind of insurance do you need for the best protection? That all depends on the type and size of farm that you have. You may have a small hobby farm or you may have multiple buildings, crops and animals that will all need coverage.
An important part of deciding what kind of farm insurance is right for you is to calculate what your risks are. Is your farm more likely to experience flooding or is losing your crops the thing that is most likely to need protection? Talking to an insurance broker who has the specialized knowledge about the farming industry is the best way to get the guidance that you need when choosing a policy for you.
In many cases, with small family farms, it’s best to switch your current home policy over to a farm policy. This will protect all of your property and buildings, including your home. This type of policy will protect all of your interests and is an affordable option. Make sure that your farm policy includes liability to protect against any non-employee injuries that may happen on your property.
For many farmers, your crop is your life’s work. When disaster or disease hits and wipes out your crop, it can mean financial ruin for many farmers. Protecting your crop is important to protect yourself against the unknown. Small or large farms can now be insured for crops after changes to rulings in 2014. A smaller farm can now insure up to 85% of their total crop. Premiums are based on past farm revenues.
Just like any other business that has employees, it is vital and a legal requirement in many cases to carry a worker’s compensation policy on your farm. This will protect you and your employees in case of any type of injury. Your policy will protect from lost wages and medical bills as well as any legal liability. Premiums are based on the size of your staff.
In areas that are prone to flooding, you may be required to add flood coverage to your policy. Rising flood waters can have a devastating effect on your farm, crops, buildings and livestock. Flood coverage is often an add-on to your existing policy, but is good to have if you feel like your farm could be at risk for flood damage.