There are more than 300 farms and ranches located in Illinois’ Lake County. The top crops grown in the Deerfield area are corn, soybeans, and forage, and the top livestock inventory includes chickens, cattle, and horses. Lake County farms sell approximately $39 million worth of commodities per year.
Whether you own an agricultural farm, a dairy farm, or a ranch in the Deerfield area, you can protect your investment with a suitable farm insurance policy.
Local independent agents can help you review policies and prices from a variety of top-rated insurance companies. That way, you can be sure you are getting your farm insurance coverage at a competitive rate. Contact an insurance agent near you to start comparing a few customized quotes.
What Is Farm Insurance?
Farm insurance is designed to meet the unique coverage needs of farm and ranch owners. It combines coverage for your home with coverage for your farming business in a single, easy-to-manage policy package.
There is no difference between farm insurance and ranch insurance other than the types of property and livestock you may choose to cover. In fact, most insurance companies call these policies “farm and ranch insurance.”
Independent insurance agents can help you review your various coverage options. That way, you can be sure you are purchasing a policy that covers you against all of the potential hazards you are likely to face as a farmer in the Deerfield area.
Is Farm Insurance Required in Deerfield, IL?
As with home insurance, farm insurance may be required by your lender if you still owe on a mortgage for your farm property. Otherwise, it is optional except for certain parts of it like commercial vehicle insurance and, with some exceptions, workers’ compensation insurance.
Whether or not it is required by law, however, farm insurance is a very good idea. Without it, a major disaster like a tornado or a fire could result in your losing your home, business, and livelihood.
Talk to a local independent insurance agent to learn more about farm insurance.
How Much Does Farm Insurance Cost in Deerfield, IL?
The cost of farm insurance can range from several hundred to several thousand dollars. Costs are based on a number of factors such as the following.
- The size and value of your home
- The size and value of your farm
- The number of outbuildings on your property
- The types of equipment and machinery owned and operated by your farm
- The number and types of vehicles owned and operated by your farm
- Whether or not your farm raises livestock
- The number of workers you employ
- The annual revenues generated by your farm
- The coverage options you choose to include in your policy
Because so many factors go into calculating costs for your coverage, the only way to find out how much a policy will cost you is by contacting a few insurance companies and requesting customized quotes. Independent insurance agents can do this on your behalf.
What Does Deerfield Farm Insurance Cover?
As with home and business insurance, farm insurance provides a combination of liability and property insurance coverage.
Farm and ranch owners have several liability risks. That is why farm insurance includes liability coverage as a standard part of every policy. Farm liability insurance is designed to pay for your court costs, legal fees, and damages if you are sued for a covered event. Some examples of available coverage include the following.
- Premises liability insurance: This can pay for costs related to damage and injuries sustained by others if guests, visitors, or other third-party individuals are involved in an accident while on your farm property.
- Product liability insurance: This can pay for costs associated with third-party illnesses, injuries, or other damage if they are caused by a defect in a product that your farm produces or sells, such as if products sold by your farm is found to be tainted with E. coli.
- Operations liability insurance: This is can pay for third-party injuries or property damage that may be caused by you or your employees while doing work on your farm.
- Workers’ compensation insurance: If you hire workers on your farm, you are required by the state to cover them with workers’ compensation insurance. This can cover the cost of treating employee injuries and lost wages if they are hurt on the job. The state of Illinois does make exceptions for farms that employ less than 400 days a year, meaning that if you have four workers who work 101 days a year, you will need to buy coverage.
An independent insurance agent in Deerfield can provide more details about these and other liability coverage options that are available to you.
Farm insurance also provides you with property coverage. It can cover the cost of repairing or replacing your personal and farm property if it is damaged by a covered event such as a severe storm, tornado, hail, or fire.
Some of the property that your policy can cover includes the following.
- Your home: If your family home is situated on your farm or ranch property, farm insurance can provide you with coverage for the structure of your house (dwelling) as well as for the property (contents) inside it.
- Outbuildings: Your policy’s property coverage can cover the other buildings and structures on your farm property. This includes such things as barns, sheds, silos, stables, and garages.
- Equipment and machinery: Your farm insurance policy can cover the cost to repair or replace farm equipment and machinery such as tractors, plows, balers, cultivators, sprayers, and sprinkler systems if they are damaged by a covered event.
Keep in mind that farm insurance does not cover your crops. For that, you will need a separate crop insurance policy. A local independent insurance agent can help you find affordable policies that can provide you with the right coverage for all of your farm property.
What Additional Coverage Is Available for Deerfield Farm Owners?
A typical farm insurance policy will usually offer several additional coverage options. You can customize your policy by choosing only the options that make sense for your Deerfield farm or ranch. Some coverages you may want to consider include the following.
- Livestock insurance: You can cover your livestock such as goats, turkeys, and cows against accidental losses that may occur due to life-threatening injuries caused by hazards like floods, loading and unloading accidents, attacks by wild animals, and electrocution.
- Specialized property insurance: You can purchase endorsements to cover certain property that is essential for operating your farm but that may be excluded from your regular property insurance. This can include things like electric fences, livestock feed, and irrigation systems.
- Equipment breakdown insurance: You can get coverage that will pay to quickly repair or replace malfunctioning farm equipment so you can keep your business running smoothly.
- Farm income insurance: This coverage is designed to make up the difference between expected and actual profits if your farm’s operations are hindered by a disaster such as a tornado, drought, or hailstorm.
- Debris cleanup and removal insurance: You can buy coverage that will cover the cost of a timely cleanup of debris if severe weather causes excessive damage to your farm or ranch. That way, you can get back to normal operations as quickly as possible.
Talk to an insurance agent near you to learn about these and other coverage options that are available to you. Your agent can help you decide what coverage is a good fit for your particular farm.
How Is Farm Insurance Different from Crop Insurance?
Farm insurance can cover your farm property, but it does not cover your crops. Fortunately, you can purchase a crop insurance policy through any insurance provider that has been approved by and is working in conjunction with the Federal Crop Insurance Corporation (FCIC).
Crop insurance is designed to provide coverage against losses that occur during the insured crop year. It can cover against unavoidable losses sustained by hazards such as droughts, unseasonable freezing temperatures, and disease.
This insurance can also cover against loss of revenue due to lower-than-expected market prices or crop yields. When purchasing this coverage, you will need to name the specific types of crops you are insuring.
A local independent agent can provide more information about crop insurance and can help you find a suitable policy to supplement your farm insurance coverage.
What Is the Best Way to Get Farm Insurance in Deerfield, IL?
The best way to find the best and most affordable farm insurance is by contacting a local independent agent. These agents live and work in your community, so you can be sure that you are getting advice from an insurance professional who is familiar with the risks you face as a farmer in the Deerfield area.
Independent insurance agents are not tied to a particular insurance company, so they are free to shop around to find you a suitable farm insurance policy at a competitive price.
Find an insurance agent in or near Deerfield to learn more about your options when it comes to farm insurance. You can start comparing customized quotes in no time.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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