Running a large ranch or dairy farm requires significantly different insurance coverage from a pumpkin patch or Christmas tree farm. Farm insurance provides a high level of flexibility to cover exactly what you need. Farmers in the United States insure over $200 billion in crops and livestock each year. This provides peace of mind in case a major event affects what they are growing.
How does farm insurance differ from other types of property or business insurance? How can Northeast Nebraska Insurance help you determine exactly what your policy needs?
What Is Farm Insurance?
Running a farm or ranch typically requires insuring both your home and your business. Insurance policies designed for homes or businesses don’t sufficiently address the needs of coverage for farms. They are unlikely to be enough to get the compensation needed. This is especially true if a major weather event, disease outbreak, or other issue hits.
Farm insurance is a type of specialty insurance designed with the unique needs in mind. It provides specific coverage for the main types of problems farmers experience. Additionally, it is highly customizable and allows farmers to purchase the specific coverage their farm needs. Most farmers start by choosing from Farmstead Insurance, Farm and Ranch Insurance, and Crop Insurance. An insurance agent can help to evaluate what else they need within that structure.
Common Parts of Farm Insurance Policies
Farm insurance policies are much more complex than standard homeowners’ insurance policies. The sections they include are customizable to address the specific type of farm you run. Here are some of the most common sections you could include in your farm insurance policy:
Dwelling Coverage
Most farm insurance policies include a dwelling coverage section to cover farmhouses and any personal belongings inside. As long as this section provides the full coverage you need, you won’t need to purchase separate homeowners’ insurance.
Farm Property Coverage
This section covers any buildings on your farm or ranch not considered residential. This property includes barns, sheds, silos, fences, and other buildings used for business purposes.
Equipment and Machinery Coverage
This section provides coverage for any vehicles specifically designed for farming purposes, such as tractors and plows. It also includes irrigation systems and other large farming equipment.
Livestock Insurance
Severe weather, disease, or other uncontrollable factors can pose a threat to farm animals. Livestock insurance helps keep your farm up and running if you suddenly lose a large percentage of your livestock. This can also cover smaller accidents involving individual animals.
Crop Insurance
Crop insurance functions similarly to livestock insurance. It provides coverage for crops lost to severe weather, pest infestations, diseases, and other widespread damage. This section also assists with severe market fluctuations that could affect the income anticipated when harvesting and selling.
Business Interruption Coverage
Business Interruption Coverage is a general type of insurance that provides income replacement if a specific qualifying event forces your farm to temporarily stop operating. This fills in the gaps in situations that other sections do not fully cover. Any owners who depend on their business’s income should consider this type of coverage.
Farm Vehicle Coverage
Most farm-specific vehicles will already be covered by your farm insurance’s Equipment and Machinery section. However, this coverage does not automatically include trucks, trailers, and other vehicles not strictly used for farming purposes. The Farm Vehicle Coverage section provides additional coverage for any vehicles, even if you use them outside the farm.
Protect Your Farm with Northeast Nebraska Insurance
Farming plays a major role in Nebraska’s economy. Running a successful farm or ranch is much more involved than many other types of small businesses. Insuring large properties used for both residential and business purposes also comes with a lot of variables. You want to focus on your farm. Let us handle the ins and outs of protecting your farm. Northeast Nebraska Insurance is a local insurance company with independent agents. We understand the unique coverage needs in our area far better than a national corporation could.
Contact Northeast Nebraska Insurance today to schedule a meeting with one of our agents. We’ll start the evaluation process of the specific elements of farm insurance to protect your investment!