Making the decision to put your working farm property back into production status is a big decision. However, it also comes with some important considerations, including the need for insurance protection. You might think that you can just get homeowners insurance for the main dwelling and that will protect everything else, but that's not the case. Here are some things you need to know about farm insurance and the importance of it to protect your farm.
Liability Protections Are Important
Farm insurance offers you liability protections that standard homeowners insurance cannot. Whether you include a liability umbrella for the risk of livestock causing injuries or illnesses related to your food sales, or you choose a farm policy that has a liability limit high enough to leave you feeling confident, you'll need to ensure that you have the liability protection that you need.
Livestock Coverage Is Necessary
Traditional homeowners policies won't typically provide you with any coverage for your livestock itself. Since that livestock is a key part of how your farm will generate revenue, protecting it only makes sense. There are a few different ways that you can do this.
A general coverage policy will provide protection up to a certain financial limit for all of your livestock. You simply determine how much value you have in livestock and seek that much coverage. However, if you have any particularly expensive livestock on your farm, you may want to insure them separately.
You can exclude them from the general policy coverage and purchase a rider that will cover those animals separately. You'll need to provide details of those animals, including photos, health information, and their value.
Farm Equipment Coverage Is Separate
Farm equipment is a significant investment. In addition, that equipment is essential for your farm to run efficiently and effectively. No matter what type of farm policy you buy, make sure that all of your equipment is protected as well. You'll want liability coverage as well as replacement coverage on each piece based on its value.
For more information, contact a farm insurance agent near you today. He or she can walk you through all of your policy options. Since no two farm policies are exactly alike, you will be able to build the policy that best suits your needs. Consider these coverage options and any other special needs that you may have to protect your property, and discuss it with your agent to craft the policy you need. Visit a website like http://www.wrg-ins.com/ in order to learn more.
