Everything You Need To Know About Ranch Insurance
Whether it’s your livelihood or just a hobby, farming can be a pretty tricky investment. From the rise and fall of the market to the potential floods and hurricanes, it’s always better to prepare and protect your assets for times of crisis. And ranch insurance is one of the things that farmers and landowners use to take care of their properties and investments. Now, let’s take a look at how ranch or farm insurance works.
What Is Ranch Insurance?
Well, ranch insurance is the same as home insurance as it protects your property, possessions, home, and other personal liabilities like fall accidents. On top of this, it’s a highly customizable type of policy as it starts with the basic coverage and then expands as your needs grow.
Each farm or ranch is unique, and an agent is tasked to visit and survey the property, so the insurance company knows how much to cover. Depending on your farm insurance policies, there is also a claim limit to shrubs, bushes, trees, and lawns. It will depend on what percentage of your property will be covered.
Detached garages and buildings covered by your homeowners insurance will be included in ranch insurance too. However, anything that is farmed for commercial use is excluded. Rather, it covers items within a certain distance from your house.
What Does It Cover?
Ranch and farm insurance covers personal properties directly linked to farming. The coverage can typically be broken down into three parts: livestock, products such as seeds and fertilizer, and machinery. Most insurance companies will let policyholders customize their own coverages over a broad category.
- Livestock
In most scenarios, insurance companies will offer comprehensive coverage for livestock if they die or get injured. There are also extensions to this insurance covering a much broader set of circumstances. Some of these extensions might include accidentally shooting your livestock or their getting hit by an automobile or train.
If you are a horse owner, there’s a different type of insurance for them because they can do different tasks. A typical policy has mortality coverage that takes care of multiple scenarios, including theft. Also, death due to sickness is important coverage horses should have. This type of coverage is not included in any other livestock policy as it is only exclusive to horses.
- Machinery
Farming machines cost a lot of money; these types of equipment are vital for the farming process and, in turn, are an important investment for farmers and business owners. So, having them insured will be a smart decision as that will prepare you for any damage that may happen to them. From tractors to planters, all agricultural machines are covered under this policy.
- Farming Products
Wheat, seeds, grains, and other products can be covered by farm insurance as long as the products are carefully stored. Crops growing on your property will not be covered by insurance. You will need a commercial insurance policy if your sales exceed the initial income limit.
There Is No Standard Ranch Insurance
People perceive farm insurance as a fixed policy. However, this is not the case. Many factors can affect your policy because each ranch or farm is unique and because the plan should be adjusted to the property and the owners’ needs.
While there’s a limit to the coverage of a commercial building in a homeowner’s insurance, farm insurance does not. For example, if a building on your ranch or property generates revenue and exceeds the insurance limits, it will not fall under homeowners insurance. Instead, it will be classified as a commercial building and will be covered by ranch policy. The thing goes for all farming activities of the owner.
Why Do You Need Insurance for Your Farm?
Protecting your property and livestock is important when natural disasters, theft, and other unprecedented things can happen to your farm. As discussed earlier, ranch insurance is a very flexible policy. Seeking help from an insurance company is your best bet. Their agents will help you create and customize the policy that’s perfect for your farm. So, if you’re looking to get your ranch insured, consult an insurance professional first.