Working on your land is peaceful, whether you do it for work or just for fun. When you go to the Grange Insurance Association, we have been insuring farms of all sizes across the Western United States since 1894. Making money from your garden at the local farmers’ market or running your own farm full-time is essential, but knowing how farm insurance works is also necessary. Our insurance experts have told us seven things about farm insurance policies that you might not already know.
A Standard Homeowners Policy covers aspects of Farming
Many people think of their large garden or small farm as a hobby and don’t think about making money. For people who do Farming in their spare time, their standard homeowner’s insurance policy may cover some things. But, keep in mind that most homeowners insurance policies don’t cover farm equipment and farm buildings. Keep in mind that you should talk to your insurance agent in your area to find out exactly what your homeowner’s policy covers!
To Make Money Farming, You May Need a Different Type of Policy
If you want to make money by growing things for fun, you need a different policy than the one you already have. If you start selling farm goods at a local farmers market, you’ll want to think about getting a policy for your hobby farm. You might want to look into the Grange Insurance Association’s Country Estates Program.
A few rules must be met for a farm to be called a “hobby farm.” Some of these rules are:
- Coverage is reduced to a single farm in the area.
- People who work for the company must not be allowed to come to work.
- More than 500 acres
- The maximum amount of money each year is $10,000.
- Coverage for the main house must be at least $125,000.
Check with your agent for even more information about our Country Estates Program and what it takes to get into the program.
If you work as a farmer full-time, you need a Farm Insurance Owner’s Policy
If you want to make farming your full-time job, you’ll need farm owner’s insurance. A basic policy for a farm owner usually covers things like property, liability, and more. This basic coverage should be changed with add-ons for your farm’s specific needs to protect your money and job better. Your insurance agent in your area will be able to help you figure out which types of add-ons are best for your farm.
Coverage for Farming is not standard
A common myth about farm insurance is that a policy is a single bundle of all your needed coverages. There is no one-size-fits-all policy for farm insurance because there are so many different parts. It is essential to make a policy that fits each farmer’s needs because Farming is different from one another.
Certain types of coverage impose restrictions on commercial structures
Homeowner policies usually don’t cover commercial structures, but guidelines for hobby farmers, like our Country Estates Program, and procedures for people who own a farm don’t usually. Suppose a building is being used in an unusual way that exceeds the particular limits outlined in the policy conditions (usually in gross annual revenue generated). The building is now considered a commercial building and may not be covered under a homeowners policy, so it may not be covered. The same thought applies to all of the owner’s work.
It is essential to have extra insurance for your livestock
Unlike crop insurance, which is partly paid for by the US Department of Agriculture, livestock insurance is paid for by the government. If you have a lot of different types of animals on your farm, you may need to get a different kind of insurance for your livestock. A few options to think about are individual coverage and blanket coverage.
Individual Coverage (Timed):
If you have a lot of high-value animals that you want to cover up to a certain amount of money, you might like to schedule them individually.
Blanket Coverage (Unscheduled):
This means that all of your farm property (livestock, equipment, structures, and so on) is covered in one lump sum amount. This is called a blanket policy. When you use blanket insurance, make sure you have enough insurance to cover your needs and expectations. Being inadequate could mean a lower payout than you need or expect.
Remember that the maximum amount paid out per person depends on the type of insurance you choose (i.e., individual or blanket). Talk to your insurance provider about which choice is best for your business and how much it will cost.
A lot of what the Grange Insurance Association does is based on word of mouth
We are proud to serve farmers across the West and reliant on word of mouth in the close-knit farming community. One of our policyholders’ best compliments is when they tell another agriculture company about our coverage. If you own a farm, it’s more than just land. It’s your life’s work. With a home, hobby farm, or farm insurance policy, you can ensure your future is safe.
Farmers started the Grange Insurance Association to ensure that other farmers didn’t get hurt. It has been protecting farmers and their families for more than 122 years. We need to know that each farm is different, so one of our local independent agents can make a policy just for you.