Blog

5 Important Reasons You Need to Buy Farm Insurance

Buying farm and crop insurance is one of the most important ways to protect yourself if your livelihood depends on a successful farming operation. If you are not currently covered, First State Insurance (FSI) provides reasons why farm insurance is essential for anyone who owns farmland.

1. Protect Your Home & Personal Property

Farm insurance usually contains a dwelling coverage component that protects your home. For example, if your dwelling suffers damage due to fire, storm, vandalism, or other named hazards, your policy covers the cost of repairs. In addition to the structure of your home, farm insurance also covers the loss of its contents. This includes electronics, clothing, appliances, furniture, and other personal property. You can also customize your policy to cover other structures such as barns, sheds, grain silos, and even fences as needed. 

2. Protect Your Farm Equipment

Farm personal property—which is distinct from household property—is also covered. You can purchase broad coverage for grain, tools, and other items used in your agribusiness. For the utmost protection, you should purchase individual riders for your high-cost equipment like plows, tillers, and cultivators. This ensures that you receive full value if they sustain damage.

3. Guard Against Liability

Farming can be dangerous, so farm insurance can help pay for damages arising out of an accident caused by you or a member of your household. For instance, if you should injure someone while operating a harvester, your farm liability insurance would cover costs associated with the injury. If an animal escapes, crosses a road, and causes an accident, insurance will protect you from paying out-of-pocket for damages. Your policy also helps to pay for any legal fees arising out of these incidents.

4. Protect Your Crops

Crop insurance helps to protect your crops against fire, weather, or drought. It can also cover unexpected drops in market price. So, if prices drop just before harvest, your insurance will bridge the gap to protect your financial security.

5. Protect Your Livestock

Farm insurance may also help to provide protection for your livestock. Most farm policies are equipped with riders that may be endorsed onto the policy to offer coverage to livestock on or off the farming premise. You can also purchase an individual policy that covers your entire herd based on the market price for each animal. For high-end animals like a prize bull or thoroughbred horse, you can purchase individual coverage to ensure you receive full value for any loss.

Farm insurance is an essential risk management tool that helps to protect your livelihood in the event of a major loss. To discuss your coverage options with an experienced professional, contact First State Insurance at 402-979-7636.