Cotton is grown on around 530,000 acres of land in Mississippi. In fact, this state produces more than 1 billion pounds of cotton every year, making it one of Mississippi’s largest commodities. If you are among the many cotton farmers in the Magnolia State, you can benefit from having good cotton farm insurance.
A local independent insurance agent can help you review policies and quotes from a variety of the area’s top-rated insurance companies. That way, you can be sure you are getting the coverage your cotton farm needs at a competitive price. Contact an insurance agent near you to more.
What Is Cotton Farm Insurance?
Cotton farm insurance is specialized insurance that is designed to meet the specific coverage needs of cotton farmers. It combines coverage for your home with coverage for your farming business in single, customizable policy package.
Is Cotton Farm Insurance Required in Mississippi?
Cotton farm insurance is not required by law in Mississippi. However, it may be required by your lender if you are still paying on a mortgage for your farm property or if you have taken out a business loan.
Whether or not it is required, cotton farm insurance is usually a very good idea. Without a solid policy in place, a major disaster like a fire or a tornado could result in your losing you home, businesses, and livelihood.
How Much Does Cotton Farm Insurance Cost in Mississippi?
The cost for farm insurance can vary from one farm to the next because rates are based on factors like the following.
- The size and value of your farm
- The size and value of your farmhouse
- The annual revenues generated by your cotton farm
- The value of your farm equipment, machinery, and outbuildings
Every insurance company has its own way calculating costs so you may be able to save a lot of money if you comparison shop before choosing a policy.
What Kinds of Property Damage Does Mississippi Cotton Farm Insurance Cover?
Your cotton farm insurance is designed to cover against many of the hazards you are likely to face as a farmer in Mississippi. Covered risks include: the following.
- Severe storms, including hurricanes, tropical storms, electrical storms, and windstorms
- Fires, including accidental fires and wildfires
- Property crimes, including burglary, theft, vandalism, and arson
The kinds of farm property your policy can cover include the following.
- Your farmhouse: If you live on your farm property, your cotton farm insurance can provide you with the same kind of coverage for your home as you would expect from a traditional homeowners insurance policy.
- Outbuildings: Cotton farm insurance can cover the structure and contents of the other buildings on your property including things like silos, sheds, garages, and bunkhouses.
- Equipment and machinery: Farm insurance can cover the cost to repair or replace farm equipment like tractors, plows, and sprayers if it is damaged by a covered event.
You will want to be certain that your coverage limits are high enough to fully cover all of your valuable farm property.
What Kinds of Liability Risks Does Cotton Farm Insurance Cover?
All cotton farm insurance policies offer liability coverage. This can cover court costs, legal fees, settlements, judgements, and other damages if you or your cotton farm business are sued for a covered event.
The following are some of the many available types of liability coverage that you may want to include in your cotton farm insurance policy package.
- Commercial general liability insurance: This can cover against many of the most common liability risks business face, such as if a guest is injured on your farm property.
- Commercial vehicle liability insurance: This can cover other people’s property damage and treatment of injuries if you or one of your employees causes a collision while driving a farm-owned vehicle.
- Workers’ compensation insurance: This is designed to pay for the cost of treating injuries and reimbursing workers for lost wages if they need to take time off to recuperate after being injured on the job. Mississippi does not require you to cover farm laborers, but you can if you want to.
It is important to consider all of the potential liability risks your cotton farm is exposed to when you are deciding which liability insurance products to purchase.
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What Else Can a Mississippi Cotton Farm Insurance Policy Cover?
When purchasing cotton insurance, you can also choose from among a few policy options. This enables you to customize your cotton farm's coverage to meet its specific coverage needs. Here are some optional coverages that you may want to consider.
- Specialized property insurance: Some of the property on your cotton farm, like fencing and irrigation systems, may be excluded from regular farm property insurance coverage. To be covered, you will need to purchase special property endorsements.
- Debris removal insurance: This can cover the cost of a timely cleanup of debris on your farm property following a severe weather event like a hurricane or tornado. That way, your cotton farm can quickly return to normal business operations.
It is always important to review all available coverage options to determine whether any are appropriate for your cotton farm in Mississippi.
What Is Not Covered by Cotton Farm Insurance?
Cotton farm insurance covers a lot, but it does not cover everything.
These policies do not cover damage to crops nor do they cover damage caused by floods. To be covered against these hazards, you will need to purchase separate, supplementary policies.
- Crop insurance: Crop insurance is federally backed coverage that is designed to cover loss or damage to your crops.
- Flood insurance: A policy through the National Flood Insurance Program (NFIP) can provide your cotton farm with up to $500,000 in structural coverage and $500,000 in contents coverage.
You will want to be sure that you have suitable supplementary coverage in place so that your cotton farm is not exposed to any unintended coverage gaps.
What Do Mississippi Cotton Farmers Need to Know about Crop Insurance?
Crop insurance is designed to cover against damage to your crops as well as against significant drops in your commodity values. Coverage can be purchased through any insurance company that has been approved by and is working in conjunction with the Federal Crop Insurance Corporation (FCIC).
There are different types of crop insurance. You can opt to buy just one type or a combination of coverage.
- Multiple peril crop insurance (MPCI): This can cover your cotton crops against a wide range of hazards including floods, droughts, severe storms, insect infestations, and plant diseases.
- Crop-hail insurance: This can cover your cotton against hail damage only. While this coverage is much less expensive than multiple peril crop insurance, its coverage is also very limited.
- Crop revenue insurance: This can cover against lost or lower-than-expected revenue due to a low crop yield or an extreme drop in the price of cotton as a commodity.
Be sure to cover against financial losses related to loss or damage of your cotton crops by supplementing your farm insurance with the right kinds of crop insurance.
What Is the Best Way to Get Cotton Farm Insurance in Mississippi?
When you are looking for the best insurance to cover your cotton farm, you may find it beneficial to work with a local independent agent. These insurance professionals live and work in your community, so they are familiar with the risks you are likely to face as farmer in Mississippi.
Also, because they are not tied to a single insurance company, independent agents are free to shop around to find you the coverage you need at the most affordable price. Set up an obligation-free consultation with an insurance agent near you to start comparing customized cotton farm insurance quotes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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