Insuring a farm is similar to insuring a business because the equipment and multiple buildings will need to be covered in addition to the residence. There are many misconceptions about what is included in this type of coverage and what the insured is protected against. The following is a basic overview of the truth about farm insurance and all that it includes.
Insurance for a farm or ranch includes coverage for the home and personal property like appliances, furniture, electronics, and clothes. It also covers farm structures and buildings as well as farm personal property. The insured can designate specific farm personal property to insure or the coverage can encompass the personal property used in the farming operations.
This coverage also provides payment for specific types of loss when the home is either damaged or uninhabitable due to a covered reason. Coverage for farm machinery, structures, and buildings may be expanded to include additional losses due to accidents such as building collapse. The liability coverage include in the policy protects the farm owner against bodily injury or property damage liability due to a covered incident.
The specific dangers covered by this policy include theft, vandalism, fire, lightening, windstorms, hail, smoke, and explosions. Livestock are covered if they are attacked by wild animals or dogs, shot, electrocuted, or if they drown. Medical payments are covered for individuals who are accidentally injured on the premises. This does not include the insured, his or her family members, or any employees of the working farm.
The truth about farm insurance is that it covers not only the main residence, but other structures. It also provides protection for personal property, farm machinery, livestock, and visitors to the premises. This insurance is both broad and flexible, due to the optional additional coverage that the farm owner may purchase.