Farm Insurance FAQs

When you own a farm, you've got to protect all of its elements against various disasters. Theft, vandalism, fire damage, severe storms, drought, and other hazards could cause major losses to your farm without the right coverage. You need to consider your buildings, livestock, crops, and more. However, you might not be sure how farm insurance works or why you really need it.

Fortunately, a local independent insurance agent can help you get equipped with the right type of farm and ranch insurance. They'll make sure you get set up with all the coverage you need for every element of your unique farm. But first, here are answers to some of the web's most commonly asked questions about farm insurance to help you get started.

Table of Contents

• What Is Farm Insurance?
• Do I Need Farm Insurance If I Live on a Farm but Don't Sell Anything?
• What Does Farm Insurance Cover?
• What's Not Covered by Farm Insurance?
• Does Farm Insurance Cover Tractors and Equipment?
• Is Livestock Covered Under Farm Insurance?
• Does Farm Insurance Cover Crop Loss from Drought or Storms?
• Is Flooding Covered Under a Farm Insurance Policy?
• What Liability Coverage Does Farm Insurance Provide?
• Do I Need Additional Liability Coverage?
• How Much Does Farm Insurance Cost?
• Can I Bundle My Farm Insurance with Other Policies?

Farm Insurance FAQs

Read on for answers to some of the most frequently asked farm insurance questions.

1. What is farm insurance?

Farm insurance is a type of insurance policy that combines elements of homeowners insurance, business insurance, and various types of liability insurance. This coverage is designed to protect your primary residence, farm buildings, equipment, livestock, crops, and farming operations against various threats. Your policy can reimburse you for losses due to fire damage, theft, drought, and many other hazards.

2. Do I need farm insurance if I live on a farm but don't sell anything?

You might have enough coverage from a standard homeowners insurance policy if you don't make any money from your land. However, if your farm has any crops or livestock, it's still highly recommended to get a farm insurance policy. This coverage can reimburse you for lost crops, accidental livestock mortality, and more.

3. What does farm insurance cover?

Farm and ranch insurance policies can be customized to meet your unique needs. However, a typical policy includes coverage for the following:

• Liability: This coverage can reimburse you for third-party claims of bodily injury or personal property damage caused on or by your farm.
• Business interruption: This coverage can provide a continued stream of income and pay ongoing operating expenses during temporary closures resulting from covered incidents, such as storm damage.
• Farmhouses and personal property: This coverage can reimburse you for damage or destruction to your farmhouse and its contents, including furniture and clothing, caused by various hazards such as fire or theft.
• Barns and outbuildings: This coverage can reimburse you for damage or destruction to your barns and outbuildings caused by theft, vandalism, fire damage, and many other hazards.
• Machinery and equipment: This coverage can reimburse you for theft, damage, or destruction of your farm's machinery and equipment, such as tractors, plows, balers, sprinklers, and more, due to various perils.
• Livestock: This coverage can reimburse you for losses to your livestock, such as theft or accidental mortality resulting from various disasters.

An independent insurance agent can help you assemble a complete farm and ranch insurance policy.

4. What's not covered by farm insurance?

Farm insurance often excludes coverage for the following:

• Flooding
• Earthquake damage 
• Equipment wear and tear
• Intentional damage or illegal acts

You might be able to get coverage for your farm against natural flooding and earthquake damage with separate flood insurance and earthquake insurance policies, or you may be able to add riders to your policy for these disasters. 

5. Does farm insurance cover tractors and equipment?

Yes, most farm insurance policies allow you to schedule various farm equipment and machinery, such as tractors, plows, harvesters, etc. Your policy can cover these large items against theft, damage, and loss due to many disasters.

6. Is livestock covered under farm insurance?

Yes, many farm insurance policies include livestock mortality insurance, which can reimburse the policyholder for accidental causes of livestock death or losses due to:

You may need additional coverage for diseases or injuries, and transportation incidents.

7. Does farm insurance cover crop loss from drought or storms?

Farm insurance policies may or may not include crop insurance. If you have crops, you'll need to be sure your policy includes this coverage or specifically add it. There are several types of crop insurance available, including coverage that protects against multiple perils or losses due to low yields. 

8. Is flooding covered under a farm insurance policy?

Typically, farm insurance doesn't include protection against natural flood damage, such as that caused by hurricanes, heavy rainfall, melting snow, or tsunamis. To protect your farm against natural flooding, you'll need a separate flood insurance policy. An independent insurance agent can help you get this coverage.

9. What liability coverage does farm insurance provide?

Farm liability coverage can protect you against expenses stemming from third-party claims of bodily injury or personal property damage caused on or by your farm in some way. For example:

• A visitor slips and falls in your barn
• Your cow escapes and damages a neighbor’s property
• A customer becomes injured or ill due to the products sold by your farm
• You cause losses or other harm to a third party due to your farm's advertisements
• You cause damage, illness, or another type of loss to a third party due to chemicals or run-off from your farm
• You are sued by a third party for any of these claims and must pay attorney, court, and settlement expenses

You'll need different types of liability coverage to protect your farm against various disasters. For example, to get protection against third-party claims of harm caused by your farm's products, you'll need product liability insurance. An independent insurance agent can help you add all the types of liability coverage you need for your unique farm.

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10. Do I need additional liability coverage?

If your farm has high-risk operations, such as agritourism or pesticide use, you may need additional liability protection. An umbrella insurance policy, also known as excess liability insurance, can increase your existing liability coverage to a limit of $1 million or greater. 

This can help you recover financially in the event of a hefty lawsuit. Umbrella insurance also tends to be highly affordable, especially considering the additional protection it offers.

11. How much does farm insurance cost?

The cost of farm insurance can vary widely depending on the type of operation you run and other factors. These can include:

Farm and ranch insurance premiums can range from a few hundred dollars to well above $10,000 annually, depending on the size and nature of your farm. In general, coverage for small hobby farms is much cheaper than coverage for large commercial operations. An independent insurance agent can help you find affordable farm insurance near you.

12. Can I bundle farm insurance with other policies?

Yes, you can often bundle farm insurance with other types of coverage, such as homeowners insurance or auto insurance. It depends on the insurance company. Usually, bundling discounts offer significant savings, such as up to 20% or even more, on each policy. Your independent insurance agent can help you find and apply bundling discounts and other savings you qualify for to help reduce your premiums as much as possible.

An Independent Insurance Agent Can Help You Find Farm Insurance

When you're ready to protect your farm or ranch against a number of threats, no one's better equipped to help than a local independent insurance agent. These agents have access to multiple insurance companies, so they're free to shop and compare farm insurance quotes and policy options for you to find the best deal. And down the road, your agent can help you file farm insurance claims or update your coverage when necessary.