If you own a farm or a ranch, you may be interested in formally protecting your property. Fortunately, farm and ranch insurance exists and can be highly beneficial. Part of the reason for this is that farm and ranch insurance policies typically provide dual coverage (for both your home and the business operations you conduct inside it). Policies can also often be customized to meet the specific needs of your ranch or farm. According to farming news publication Farm Progress, most farm insurance umbrella policies require an underlying policy that provides between $300,000 and $500,000 in liability coverage (at minimum).
Areas Of Coverage
Farm and ranch insurance policies may offer many different types of coverage. However, here we will focus on four specific areas: dwelling coverage, farm personal property liability coverage, farm outbuilding, and livestock coverage.
Dwelling Coverage
Dwelling coverage shields your farm or ranch from damages caused by weather-related incidents (lightning, fire, windstorms, hail, etc.) and damages that are tied to theft and vandalism. Be sure to ask your insurance company for specific details on dwelling coverage, as damages caused by certain types of events (e.g. flooding and earthquakes) may not be covered by your policy.
Farm Personal Property Liability Coverage
This type of coverage provides you with protection for your personal belongings found inside your ranch or farm, whether they are damaged or stolen. This generally includes furniture, clothing, appliances, and furnishings (rugs, lamps, etc.). If you wish to protect more valuable items, such as firearms and antiques, you may likely need to acquire an insurance policy with higher-than-average limits.
Farm Outbuilding
Farm outbuilding coverage helps protect any machine sheds, barns, detached garages or other outdoor structures you own next to your farm or ranch. This type of coverage may be especially useful if your outbuilding contains any items that are particularly vulnerable to damage, or if the structure itself may easily fall victim to any type of harm. Once again, be sure to verify which types of damages are covered under your policy.
Livestock Coverage
Livestock coverage is often only available by endorsement. In the insurance industry, an endorsement (also known as a “rider”) is an addition or legally binding amendment to an insurance contract that alters the original policy’s scope or terms. Endorsements, which can affect premiums, may be issued upon purchasing your policy, during your policy’s term, or upon renewal. If you own any livestock (cows, sheep, pigs, etc.), this type of coverage can help protect these animals. According to the U.S. Department of Agriculture, certain livestock insurance policies provide protection against loss of gross margin (your cattle’s market value minus feeding costs).
There are several other types of farm and ranch insurance coverage areas you may acquire for additional protection, including farm equipment (e.g. tractor) breakdown coverage, farm income coverage (for loss of earnings or farm rent), and replacement cost coverage for irrigation systems.
Supplementary coverage is also sometimes available for trees, fences, signs, debris removal, and fire department service charges. If you employ anyone on your property and wish to protect them as well, you may likely need to purchase other types of insurance policies, such as workers’ compensation coverage or other types of liability insurance. The cost of farm and ranch insurance often varies depending on several factors, including the size of your property and the scale of your operations.
Protect Your Farm With JMG
JMG provides comprehensive insurance coverage for several different types of ranch and farm operations, including equine, dairy, poultry, cattle ranches, and commercial operations. Our policies typically include dwelling coverage, personal property coverage, fair rental value coverage, loss of use, and outbuilding coverage. We also provide additional coverage for livestock and farm and ranch equipment.
A farm and ranch insurance policy can help significantly protect both your property and its operations, and thus functions as a blend of homeowners’ and business insurance coverage that is customized to meet your unique needs. Call JMG Insurance Corp today at 1-(844) 304-7332 or contact us online to request a quote.