Farm Insurance

Unlike auto insurance, farm insurance is protection on all of the machinery, livestock, grain, and other tools needed to run a farm or ranch. Policies can be modified to also protect buildings, as well, but include protection against bodily injury to another person, medical expenses, legal expenses, or damage to another person’s property. In essence, it combines personal homeowners insurance with liability and commercial coverage; This is usually for farms which have both commercial and residential qualities. Land is typically not covered under farm insurance, but can sometimes be modified to include land as well.

As far as what types of crops are covered under farm insurance, there are four main types of crops that account for 70% of all estimated coverage: soybeans, cotton, wheat and corn. To give an idea of how much of crops are covered, 2014 statistics indicated that 87% of all corn crops, for example, were covered by federal crop insurance. For cotton, this figure was 96%, for wheat it was 84% and soybeans were 88%.

Farms themselves are further classified into types of farms for insurance purposes, being broken down into commercial and hobby farming. Some of the guidelines which make a farm qualify as a hobby farm include having no employees, limited coverage to one location, on less than a certain number of acres of land and where total farming profits do not exceed a specific dollar amount. If someone is a full-time farmer, then they will need a policy which reflects that nature.

The types of farms that should buy insurance are the ones which love what they do and care about protecting the lifestyle that they have against any number of uncertainties from other parties. Likewise, some policies cover you if you ever mistakenly injure someone or their farm equipment. In the event that an accident, injury, theft or damage does occur then a farmer must file a claim, their policy will be evaluated and enacted once approved for a payout to cover what is necessary. Peace of mind is a valuable commodity, and one that we strive to help all farming and ranching customers achieve.