Your hobby farm no doubt has its own equipment and machinery that you use to complete your daily operations. And making sure you have the proper farm insurance to help protect all your tractors, ATVs, and the like is the key to keeping any successful farm running smoothly. An independent insurance agent can help you find the perfect blend of farm equipment and toy coverage at a cost that fits your budget.
Your independent insurance agent is a knowledgeable resource when it comes to insuring all aspects of your hobby farm and can help navigate you through the entire process. And knowing how your coverage works and where to get it is essential to running a successful and leisurely hobby farm.
How to Insure Your Hobby Farm's Equipment and Machinery
Insuring your hobby farm is one thing, but insuring the equipment and toys that help run your farm is a whole different story. Your equipment and toy insurance policies are typically separate from your overall farm coverage but sometimes can be included, depending on your carrier.
The best place to start is at the beginning. You'll need to have your independent insurance agent look at pricing and coverages for your equipment and toy's specifications. So whether you have a million-dollar tractor or a groundskeeping four-wheeler, your coverage needs to apply adequately.
Your independent insurance agent will need to know the following to get started:
- Your equipment and machinery's specifics: What are the serial numbers for each piece of equipment and toy. What are they registered as, and what will you be doing with them?
- What are your equipment and machinery worth: This isn't the sentimental value, but what the market can bear. This means what the market will pay for your piece of equipment or toy and how much it would cost to replace it if the worst should happen.
- What preemptive protection do you have in place: Are there proper protocols for the operators of equipment and toys used, and do you take proper care of these toys and equipment regularly?
When to Insure Your Hobby Farm Equipment and Machinery
Time is of the essence. If you have equipment and toys already that aren't insured, then you'll want to get coverage in place as fast as you can. If you're looking to add some new pieces of equipment or maybe a new four-wheeler to help your hobby farm be the best that it can be, then coverage will depend on who still technically owns them. Remember, you can't insure something you don't own. But if the equipment or toy is in transit, then that's another chat altogether. Discussing with the seller whose insurance policy would pick up coverage while the property is in transit and before they are actually passed off to your hobby farm is a key conversation to have.
Cost of Insuring Farm Equipment and Machinery
Take a moment and gather some cold, hard facts on equipment, toys, and heavy machinery numbers in the United States. The numbers that US farmers spend on equipment is no joke and it's worth the look. The proof is in the pudding, as you can see in the graph below.
Expenditures on tractors and self-propelled farm machinery by US farms from 2012 to 2016
Now, since you know the costs that one study calculated for one short period of time, you can imagine why insurance is such an important thing to have for your own equipment and toys. The cost of insuring them, however, is dependent on the specifics of your property, what they're worth, and how much coverage you exactly need. Every hobby farmer has different needs and as such comes different pricing. Speaking with your independent insurance agent will get you exact coverage and pricing.
What Does Equipment and Machinery Insurance Cover and What Doesn't It Cover?
When it comes to insuring your farm equipment and toys, it's important to know what goes into it. Now you need to know what the policy will actually cover and what it won't.
What your hobby farm equipment and machinery insurance generally covers:
- Accidents: This can be anything from coverage for fire, smoke, to loading and unloading of equipment and toys.
- Natural disasters: This is for volcanic eruption and sinkholes. Floods and earthquakes are typically covered under a separate policy.
- Weather events: This is for lightning, wind, hail, tornados and more.
- Crimes and civil unrest: This is for theft and vandalism of your farm equipment and toys.
- Collision or other death while transporting: This is in-transit coverage for your farm equipment and toys.
- Replacement of your farm equipment and toys: This provides coverage for your equipment and toys. So if any of the above claims occur, then you will get either full replacement cost, the market value of the item, or the depreciated value of the item. This is all dependent on your policy specifics, so discuss with your agent.
What your hobby farm equipment and machinery insurance doesn't cover:
- Natural wear and tear of your farm equipment and toys
- Equipment or toys that don't work due to wear and tear or general use
Hobby Farm Equipment and Machinery Liability Insurance
If you’re found to be legally responsible for causing bodily injury or property damage to other people or their property as a result of your equipment or toys, you’ll have coverage under the liability portion of your policy. Between that and all the other coverages your hobby farm policy provides, it looks like you'd be in pretty good shape.
Your independent insurance agent can discuss all facets of your hobby farm and equipment/toys policies making sure you've got the proper coverage in every area.
Why Online Quotes Aren’t Always the Best Way to Shop
Getting your insurance quotes online can be tempting. Sure, it’s fast and easy, but are the quotes you are getting actually accurate? And are you getting quotes for all the different types of coverage your business needs?
Online quotes cannot give you the whole picture. They often omit important coverage, which may result in you being unable to get compensation if something disastrous happens. And they can leave out cost-saving opportunities such as discounts and bundling opportunities that an independent agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent near you, and schedule a one-on-one consultation to discuss your options for the best coverage for your hobby farm equipment and toys.
The Benefits of an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. And as your hobby farm grows and your needs change, they'll be there to help you adjust your coverage, up or down, to make sure you're properly protected without overpaying. Find an independent insurance agent in your community here.
TrustedChoice.com Article | Reviewed by Candace Jenkins
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