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Insurance for Small Farms

Small farms need insurance to protect their farm property as well as the home in which they live. In addition, owning a farm comes with different liability exposures which can impact the livelihood of the farm and home. Below are some key insurance coverages which can help you protect your investment.

If you have a home on your farm, here are some recommended insurance coverages you should have:

- Dwelling coverage: Dwelling coverage helps to repair or replace your home if it is damaged or considered a total loss.

- Personal liability: Protects you from lawsuits or damages for which you may be responsible for.

- Personal property: Personal property will provide coverage for the personal belongings you own in your home and on your property.

For your farm, here are some recommended coverages which will protect your farm and day to day operations:

- Farm buildings: Outbuildings, pole barns, sheds and other buildings used for your farming operations can be covered under insurance and can choose various loss settlement options like actual cash value or replacement cost.

- Farm liability: This coverage will protect you if you are liable for property damage to others or if someone files a lawsuit against your farm. It is important to identify what types of risks you have that are unique to your farm. Following a checklist, like this one from ReadyAG, is a great first step to help you identify the risks you may face.

- Farm personal property: You may need additional protection for your farming equipment such as tractors, plows, and other large equipment. Some carriers may provide coverage for farm implements, borrowed, or rented farm equipment and any new farm personal property that has been purchased during a specific period of time.

- Farm equipment breakdown: Repairing or replacing farm equipment can become quite expensive. Farm equipment breakdown coverage will help cover expenses due to breakdown for farm building items like boilers, vacuum vessels, mechanical, electrical, electronic or fiber optic equipment.

Several insurance companies may offer extra coverage, packages, and increased limits that build on your policy for your specific farm type. Some optional coverages include pollutant cleanup and removal, coverage for livestock and even damage to crops and fences. It is important to discuss your options with an independent agent who can help you customize the appropriate insurance coverage needed for your specific farm type.

Sources: Secura Auto-Owners


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