What You Don't Know About Farmers Insurance

​Farming is probably one of the most important jobs in the world. So whether you’re a part-time or full-time farmer, it is imperative to understand the coverage of farmer’s insurance. In this article, we will tackle topics regarding things that most people are unaware of farmer insurance.

Standard Homeowners Policy covers some farming activities
A standard homeowner's insurance policy may cover farming activities if such activities are done as a hobby and not for business. These policies do not include farm equipment, sheds, and shacks. To be precise, talk to your insurance agent about it.

Hobby Farm Policy
Farming, as a hobby, is covered by a homeowner's insurance policy. But farming for profit entails a different coverage: a hobby farm policy. 

Here are some of the parameters to follow for a farm to be considered a hobby farm. These include:

• Property Coverage:  limited to a single location
• Total annual farm receipts: limited to a maximum of $10,000 only
• Minimum coverage: $125,000 on the main house 
• Mobile homes are not qualified
• Personnel present: none
• Area: less than 500 acres

Farm Owner’s Policy
This policy is for full-time farmers. The basic coverage (property coverage, liability coverage, etc.) should adapt to the farm's unique needs. It will need certain endorsements. Your insurance agent will be able to help you decide the kinds of endorsements that best fits the needs of your farm.

Farm Insurance Coverage is Not Standard
Farm insurance policies have so many unique aspects that it’s quite impossible to impose predetermined coverages. Each farming operation is special. Different farms require different policies. 

Some Coverage has Limitations on Commercial Structures
Farm Owners and Hobby Farming policies have no limit coverage on commercial structures, unlike homeowner’s policies. 

Special Coverage for Livestock
Livestock requires special coverage. These include:

• Individual Coverage
  It fits the need to ensure high-value livestock.
• Blanket Coverage 
  It covers all farm property (equipment, outbuildings, structures, livestock, etc.) insured in a single premium complied annuity. 

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A farm isn’t just land, livestock, and equipment for the farmers. It is their legacy. Insurance takes the lead in protecting these assets or estate in situations where the farmer cannot control. It is how a farmer’s insurance policy works.

At Insurance Agency Network, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (425) 681-0996 or Click Here to request a free quote.