Frequently Asked Questions on Farming Insurance
How Does Farm Insurance Work?
Insurance agents will want to determine whether the rural dwelling on the property is a
home or a ranch. It's an important distinction, as there can be substantial differences in
coverage. For example, a standard homeowners policy covers fencing, as well as the
contents of ancillary buildings such as a tool shed.
A ranch policy does not cover either unless they are specifically scheduled. A farm
insurance policy combines the standard coverage offered by a personal homeowners
policy with commercial property and liability coverage.
What Is Coverage Like for Farm Insurance Policy?
The benefit of a farm policy is that it can be customized to the needs of the insured. It's
important to determine whether or not your land qualifies as a farm. There are many hobby
farms, smaller farm operations, and retirees. The insurance company will want to know
what you produce, in what quantity, and for what profit.
The standard farm policy is a hybrid of homeowners coverage, commercial business
insurance and specialty insurance. If the farm is a going commercial concem, the owner
will want a basic farm policy providing the following basic coverages:
- Property Coverage - This coverage protects your home, outbuildings, belongings
and some equipment in the event of loss, such as a fire or tomado.
- Farm Liability Coverage - This coverage will cover a loss unintentionally caused by you or
your employees to another's property or person.
- Medical Payments - This coverage will provide payments for medical bills sustained
by someone injured on your property.
- Additional Living Expenses - If you must relocate from your home due to damage caused
by a covered event, then this coverage provides for the cost of things like temporary
housing or a hotel stay.
The basic coverage can be modified by endorsements. Some endorsements add to
the cost of the basic policy. You must speak with your insurance professional and have a
solid understanding of what is covered by the basic policy and then consider
endorsements that may be applicable to your situation.
Some additional coverages may include:
- Coverage on outbuildings (barn, machine shed, etc.)
- Blanket coverage for you farm machinery, livestock, hay, grain and other farm items.
- Irrigation systems.
- Equipment breakdown coverage.
- Farm trucks and autos.
- There are many more endorsements. Theses are just a few of the more important coverages.
Get a Farm Insurance Quote from Koch Insurance
To see how our farm insurance policies can help your ranch be secure, please contact us
for a free quote. Koch Insurance agencies are located throughout South Dakota, with
office locations in Tea, Tyndall, Tabor, Springfield, and Yankton. We'll provide you with all
the information you need to make an informed decision on your farming safety.