Farm insuranceisn’t just for farmers with G of acres of edible corn , hundreds of fountainhead of cows and barns sate with expensive equipment . Here are four reasons you demand insurance for your hobby farm .
1. Farm assets aren’t covered under homeowner’s policies.
If a tree falls on apasture fence or your tractor is stolen , homeowner ’s insurance wo n’t plow the losses , explains Erin Cumings , a farmer and associate vice president of agribusiness underwriting at a major insurance society .
“ Some householder ’s insurance will let you sum an endorsement or a rider , ” she pronounce , “ but it declare oneself circumscribed coverage for property or liability . ”
Homeowner ’s insurance may also keep out farm building such as barns and silo . This couch you at risk of having to cover expensive repairs out - of - pocket . purchase hobby farm insurance policy help protect your investments .
2. Hobby farmers need liability protection.
The first thing one farmer did when one of her horse nipped a rider was call her policy company . She needed reassurance that any damage would be covered . There was no lawsuit , but the farm policy see that no disbursal would be paid out of pocket .
“ If an animal carries an illness or nips or damagesproperty , you ’ll want financial obligation security , ” Cumingssays .
financial obligation shelter covers anything that happens on or off the farm . It ’s a must if you take stock to the state fair , operate a traveling snuggling zoological garden , or participate in any other off - farm action with your animals or equipment .
Cumings recommends hobby granger buy at least $ 1 million in indebtedness coverage .
3. Farm vehicles require their own coverage.
All other farm vehicle , including UTVs and ATVs , will need their own coverage .
“ Your personal auto insurance typically wo n’t deal your farm vehicles , especially if they ’re used to transport produce , stock and other items for sale , ” says Jochen Schunter , commercial-grade machine product manager atProgressive Insurance .
“ A commercial-grade insurance policy gives you the flexibleness to protect all of your farm vehicle whether you own a pickup , dump hand truck , agrarian trailer or buck trailer . possess the right coverage for the fomite you trust on can keep your farm running smoothly should an accident occur . ”
4. Insurance protects against loss of income.
Whether you earn a living from the farm or make just a niggling additional income , steal equipment , storm harm and unbalanced animals could have a major impact on your bottom logical argument .
Hobby farm indemnity often covers loss of income . This ensures you may still keep the hay feeders fill and cover the vet bills when things go wrong .
“ What might seem like diminished red ink could take a significant toll on your farm business organization , ” Cumings says . “ You want reportage in place to protect against financial hardship . ”
When you ’re shopping for hobby farm insurance , face for an agent that realize the elaborateness of a small farm . This agent can commend the right coverage for your specific need . reporting is more expensive than a typical homeowner ’s policy , but Wilkie believe , “ You ’re play with attack if you do n’t have insurance . ”
This story originally appeared in the November / December 2019 issue ofHobby Farmsmagazine .
