INSURANCE AGENCY NETWORK Blog
If you are looking around for different insurance policies for your property, you might have already come across both the homeowners and farm owners’ policy. While the two are mostly similar, some terms have to be verified by your agent to make sure that you are getting the right one. To know more about their differences, here are what you will have to check when going around for the farm owners’ policy.
Limitations of Homeowners Property Insurance
If you look at Homeowners' policies, you may find that properties of your home that you also use for your business will not be covered. This can be found in the Business Property and Appurtenant Structures section. The structures mentioned can include farm buildings like barns, tack rooms, and hay storage. If you have animals that you train or breed, the general homeowners' policy does not cover them.
This makes a farm owner’s policy an ideal choice for you because it will help you cover these expenses if they are damaged.
Care, Custody, and Control for Your Livestock
In a typical homeowner’s policy, you may find that some non-owned property in your custody is excluded from the insurance. This applies even to horses on your property that are not yours. However, in the Farm and Ranch Package, you have the choice to include the care, custody, and control of your livestock. The limits can start at around $5000 per horse and about $25,000 per occurrence. You might also find policies that can allow you to request higher limits.
Business Personal Property Coverage
Your business personal property may refer to the hay fed to horses, tack, and other equipment used to care for equine in your premises. The coverage is typically at around $250 to $2500 if the policy is not a farm owner’s insurance. You may find that this amount will not be enough to replace the equine property in your place. Luckily, you may find that Farmowners Insurance considers this equipment and buildings for its actual value. This way, the business limitation and intent of the property are clarified.
There will be substantial differences in the coverage, so it will be better to consult an expert before signing the papers of a particular policy. Avoid troubles and save yourself the hassle by carefully picking out the right insurance for your property.
At Insurance Agency Network, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (425) 681-0996. You can also request a free quote by CLICKING HERE.