Farm Insurance in Treasure Valley
If you’re farming on your property, a standard homeowners’s insurance policy may cover some aspects of your operation. However, if your farm goes beyond personal consumption and you’re selling the product, a farm policy will be required.
Identify all Operations
Before you decide to operate your farm, consider some of these questions below. Often farm owners will jump into the operation prior to identifying what type of farming they are doing or what all types are included. Before you start, ask yourselves these questions:
- Will crops be grown?
- Will livestock be raised?
- Will products from the farm be sold directly to the public?
- Will employees work on the farm?
- Will equipment be used?
- Will children or visitors visit the farm?
- Will animals be boarded for others?
- Will equipment be leased?
- Will land be rented?
- Will buildings be used in farm operations?
The Farm Policy
Your typical farm insurance policy is actually a blend of home insurance, business insurance and some specialty coverages.
- Property Coverage-This coverage protects your home, outbuildings, belongings and some equipment in the event of loss, such as a fire.
- Liability Coverage-This coverage will cover a loss unintentionally caused by you or your employees to another’s property or person.
- Medical Payments-This coverage will provide payments for medical bills sustained by someone injured on your property.
- Additional Living Expenses-If you must relocate from your home due to damage caused by a covered event, then this coverage provides for the costs of things like temporary housing or a hotel stay.
Basic coverage can be changed by making changes called “endorsements.” Typically, endorsements add to the cost of the policy but all are worth consideration for your situation.
- Replacement Cost Coverage – will pay on a loss at the replacement cost instead of the actual cash value.
- Property enhancements – can be added by endorsements these endorsements broaden coverage in bundles of coverage.
- Laws and ordinance coverage – will cover the cost of bringing a house or outbuilding up to code after a loss. For example, if the barn is damaged, then typically the barn will need to come up to modern code during the repair. That extra cost is typically not covered but can be added by endorsement.
- Boarded Animals Coverage – can be added both as a property endorsement and liability endorsement. Under a standard policy neither liability or property damage is covered if the loss is caused by or to a boarded animal.
- Water Damage/Sewer Damage Coverage – can add protection for sewer or water backups to the home or outbuildings
- Livestock Insurance – Livestock insurance
These are just a few of the more important endorsements – talk to your insurance professional and fit the basic farm policy to your needs.