Farm and Ranch Insurance – Do you need it?
People often ask us about farm and ranch insurance, and many times people are surprised by the answer. If you own a home on a bit of land and have a property that needs protection, some carriers give you options, and others do not. For example, RVOS automatically includes farm liability on your property if you have more than 9 acres, regardless if farming/ranching is conducted on it.
Farm and Ranch insurance is an interesting hybrid between business and personal insurance. Some carriers will write farm and ranch on personal lines forms, while others will write it on commercial forms. Farm and ranch policies can be endorsed to include coverage for farm buildings and/or equipment for an additional charge. The same applies to farm/ranch hands/workers, who are not automatically covered. However, keep in mind that some carriers offer the option to include coverage for the workers, whether they are full-time or seasonal workers, for an additional charge.
If you do have options (check with your agent to find out if you do), read the below to learn more about farm and ranch insurance.
How Do You Use the Property?
The first and most important consideration is how you use the property. For example, do you own livestock or plant crops? You might also look at the type of structures you have on the property, like a storage shed or a barn. If you do, you might need more coverage to make sure that these things are protected in case of a fire.
Another potential indicator you might need a more comprehensive level of insurance is if you use the property to generate money, running it as a business. If you do, then you should strongly consider getting farm and ranch insurance. This type of coverage will ensure that these commercial aspects are safe, which will protect both your investment and your ability to generate income. For example, in many cases, if farm equipment is damaged, it may need to be repaired or replaced. Either way, you might not be able to operate the farm, which means you will not earn any money. Not many people have the funds in their bank accounts to cover costly repairs and they especially can’t cover new equipment out of pocket. Farm and ranch insurance could protect you from such a setback.
Do You Have People Working on the Property?
Farm and ranch work can be very dangerous considering all the sharp and heavy equipment needed. Horror stories abound on accidents happening on a farm and ranch. Keep in mind the property owner could be held liable for such an injury. In some cases, this can cost thousands of dollars, depending on the severity of the injury the employee received.
When you take out farm and ranch insurance, you will be able to make a claim to help you cover these damages. This claim will ensure that you will have enough money for all your workers to get the best possible treatment in case of injury.
Should You Take out Business Insurance Instead?
Business insurance may not be the best option for your situation. There is a range of unique challenges that only farmers experience. For example, most other businesses don’t need to worry about livestock and the unique demands of running and maintaining farm equipment. For this reason, you will be able to get a better deal by choosing farm and ranch insurance. This type of insurance has been designed specifically to meet the demands of farmers and ranchers so that they are protected. By selecting the best possible policy to suit your situation, you won’t be wasting your money paying for a policy that won’t provide the correct coverage.
Choose the Coverage That You Will Need
Finally, you will need to make sure that you get the best possible deal by choosing the right level of coverage. One of the most significant benefits of farm and ranch insurance policy is the ability to customize it to give you the level of protection that you need.
For example, you might be facing a unique range of hazards on your property. Common examples include people living next to a railway track or a highway. Such living locations can represent a significantly higher risk or injury or death to any livestock that you might have on the property. You may want to discuss this with the insurance agent to make sure that these are covered in the policy.
This level of customization is one of the most significant factors that separate home insurance from farm and ranch insurance, as it’s tough to generate a quick quote for a farm.
Contact an Experienced Insurance Company
Hopefully, you now have a better understanding of whether you need to take out farm and ranch insurance for your property. However, in some cases, you might still be undecided about whether it’s necessary. In this case, you should make sure to contact an experienced insurance agent. They will be able to talk more about your specific situation and help you find the right policy for you. To do this, you might want to contact Insureberry, a trusted company based in Fort Worth, Texas. This team has many years of experience helping customers find the best insurance. Besides, getting sound advice, you can get a free quote, so then you will know how much this level of protection will cost. So, make sure to get a free quote for your farm and ranch insurance.
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