Monday, November 23, 2015

What Your Farm Insurance Should Cover

Agricultural insurance or farm insurance saves farmers and those engaging in agri-business from losses sustained by natural catastrophes. Policies under this insurance are structured to protect the basic needs of the homestead. This is particularly important for small farmers because their farms are both home and business for them. Once the farms are damaged or destroyed, the farmers will be left with no home and money. Farm bureau insurance may save them, but there is nothing like a full coverage agricultural insurance.

What are the things that should be covered by a good farm insurance policy? There are several, and a perfect insurance covers them all. However, it is common for most insurance packages to cover only two or three out of the several conditions. The best solution for farmers is to determine what they most need and get the insurance which covers this particular need. It can be crop insurance, homestead insurance, or vehicle insurance. To give you a clue about the possible conditions an insurance provider might offer, below are some ideas of the possible insurance coverage.

You are more valuable than your farm so make sure that you get an insurance with provisions for farm liability. These provisions protect you from injuries sustained during farm work like falls, burns, or even pesticide poisoning. In addition, these provisions protect your property from damage as long as the damage was sustained in the course of farm work or natural disaster. These farm insurance provisions protect your property in cases like fire, flood, or hurricanes.

Farm property provisions cover damages to selected properties like livestock. This is particularly important for farmers and farms residing in hurricane, tornado, and landslide-prone areas. Statistics show that a large percentage of the casualties during these calamities are mostly livestock like horses and cows, which do not have evacuation options. A type of farm bureau insurance usually covers this risks.

Some farm insurance policies have provisions for the specific protection of the homestead and everything within it. These provisions protect the farmer from losses sustained due to house damages like leaks and theft. If your farm stands on the far side of the town where there are few neighbors to watch over your property if you're away, you might want to consider adopting this condition.

Farm vehicles and equipment are put to rough work regularly. Therefore, they are prone to breaking down. This translates to large expenses for the farmer. If you want to avoid this scenario, consider including this condition in your insurance policies. Better yet, consider getting a comprehensive farm auto insurance to protect yourself from financial damage due to broken machines and equipment. Farm insurance is an asset, but only if you know how to choose them wisely.

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