There are more than 750 farms and ranches located in Illinois’ DeKalb County. The top crops grown in the DeKalb area are corn, soybeans, and oats, and the top livestock inventory includes hogs, pigs, and cattle. DeKalb County farms sell approximately $384 million worth of commodities a year.
Whether you own an agricultural farm, a dairy farm, or a ranch in the DeKalb area, you can protect your investment by covering it with a comprehensive farm insurance policy.
Local independent agents can help you review policies and prices from a selection of highly rated insurance companies. That way, you can be sure you are getting the coverage you need at a competitive rate. Contact an insurance agent in DeKalb to start comparing customized quotes for farm insurance.
What Is Farm Insurance?
Farms and ranches are more than just businesses. They are also the homesteads of the owners of these properties.
To meet the unique coverage needs that farms and ranches present, farm insurance combines the coverage you would expect from a business insurance policy with the personal coverage of a homeowners insurance policy.
There is no significant difference between farm insurance and ranch insurance other than the types of property you may choose to cover. In fact, most insurance companies call these policies “farm and ranch insurance” or just simply, “farm insurance.”
Independent insurance agents can help you find a farm insurance policy that can cover you against all of the potential hazards you are likely to face as a farm or ranch owner in the DeKalb area.
Is Farm Insurance Required in DeKalb, IL?
Farm insurance may be required by your lender if you still owe on a mortgage for your farm property. Otherwise, while a policy itself may be optional, some aspect of it may be required, such as these policies.
- Workers’ compensation insurance: This is required if the total days worked by all your farm employees combined exceeds 400 days.
- Commercial vehicle insurance: This is required for any farm vehicles that you or your workers may operate outside of your farm property.
- Product liability insurance: This may be required by some farmers markets if you will be selling products at them.
Whether or not it is required, farm insurance is a very good idea. Without it, a major disaster like a fire or a severe storm 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 DeKalb, IL?
The cost of farm insurance can vary significantly from one farm to the next. Costs are calculated according to a number of factors such as these.
- The size and value of your farm and your farmhouse
- The number and types of outbuildings on your property
- The value of the equipment, machinery, and vehicles owned by your farm
- Whether or not your farm raises livestock in addition to crops
- The number of workers you employ and the number of days they work per year
- The annual revenues generated by your farm
- The coverage options you are including in your policy
Every insurance company has its own way of assessing risk and calculating rates, so it pays to comparison shop before choosing a policy. Independent insurance agents can help by obtaining customized farm insurance quotes on your behalf.
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What Does DeKalb Farm Insurance Cover?
As with home and business insurance, farm insurance provides a combination of liability and property insurance coverage.
Farms and ranches are businesses, and therefore have a number of liability risks. That is why all farm insurance policies offer liability coverage. This insurance is designed to pay for court costs, legal fees, and damage if you or your farm is sued for a covered event.
The following are some of the types of liability coverage that are available to you:
- Premises liability insurance: This can pay damage and injuries sustained by visitors, guests, or customers if they are involved in an accident while on your farm or ranch property.
- Product liability insurance: This can pay for illnesses, injuries, or other damage sustained by others if a product that your farm produces or sells is contaminated or is otherwise defective.
- Workers’ compensation insurance: This insurance can cover medical treatments and lost wages if your farmhands are injured on the job.
An independent insurance agent can help you review these and other liability coverage options that are available for you to choose from. Together, you can determine what policies are a good fit for your DeKalb farm or ranch.
Farm and ranch owners in the DeKalb area are most likely to experience property damage caused by severe storms, high winds, hail, and blizzards. Fortunately, your farm insurance policy can provide coverage for your expensive farm assets against each of these perils.
Some of the property that your farm insurance policy can cover includes the following.
- Your farmhouse: If your home is located on your farm or ranch, farm insurance can provide you with coverage for the structure of your house (dwelling) as well as for the personal property inside it (contents) just like a traditional homeowners insurance policy would.
- Miscellaneous outbuildings: Farm insurance can cover the various other structures on your property including such things as barns, silos, garages, lean-tos, sheds, and stables.
- Equipment and machinery: Farm insurance can pay to repair or replace your farm equipment and machineries, such as tractors, balers, and plows if they are damaged by a covered event like a hailstorm.
What Additional Coverage Is Available for DeKalb Farm Owners?
There are several additional policy options available. This enables farm and ranch owners to customize their coverage to meet their specific needs. Some optional coverage that you may want to consider including in your farm insurance policy are the following.
- Livestock insurance and poultry insurance: These policies are designed to cover the investment you have made in your farm animals against losses related to deaths and illnesses caused by hazards like severe weather, predatory animal attacks, loading and unloading accidents, floods, and electrocution.
- Specialized property insurance: Some of the property on your farm or ranch may be excluded from regular farm property insurance coverage. You may therefore need to purchase endorsements to cover these items including things like electric fences, feed, and irrigation systems.
- Equipment breakdown insurance: This optional insurance covers the cost of repairs if your farm equipment breaks down or otherwise malfunctions. If a repair will take a long time, this coverage may also pay for the cost of renting comparable equipment so you can keep your farm operations running smoothly.
- Debris removal insurance: Severe weather events like windstorms and tornadoes can result in excessive debris on your farm or ranch property. This coverage can pay for the cost of a timely cleanup. That way, you can get back to normal operations as quickly as possible.
- Farm income insurance: Unexpected problems can sometimes result in much lower-than-expected profits for your farm or ranch. This insurance is designed to make up the difference between expected and actual profits if your farm’s operations are stalled by a covered event.
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 which, if any, are a good fit for your DeKalb-area farm or ranch.
What Is Not Covered by DeKalb Farm Insurance?
Farm insurance covers a lot, but it does not cover everything. Your policy will not cover property damage caused by floods and will not cover loss or damage to your crops.
As with traditional home and business insurance policies, you can only be covered against flood damage if your supplement your farm insurance coverage with flood insurance. You can purchase an affordable commercial flood insurance policy through the National Flood Insurance Program (NFIP).
Additionally, 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).
A local independent agent can help you get all of the supplemental coverage you need to fully protect your farm or ranch.
What Is Crop Insurance and How Is It Different from Farm Insurance?
Your crops can be damaged or destroyed by a number of unavoidable hazards. If this happens, crop insurance can help you recover your losses. This coverage is necessary because in most cases crop damage is not covered by farm insurance.
Crop insurance is designed to cover the loss of crops or lower crop yields due to natural causes such as droughts, heavy rains, hail, unseasonal freezing temperatures, excessive heat, and disease. Crop insurance must typically be purchased prior to planting the crops that will be covered.
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 DeKalb, IL?
Independent insurance agents who live and work in the DeKalb area are familiar with the hazards you face as a farm or ranch owner in northern Illinois. They can help you build a suitable farm insurance policy that provides coverage against all your risks and exposures.
Also, because they are not tied to a single insurance company, these agents are free to shop around in order to find you the coverage you need at the most affordable price. Contact an insurance agent in or near DeKalb to learn more about your options when it comes to farm insurance.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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