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.
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:
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:
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.