You might have found yourself in the position to buy a farm. One of the first steps you'll need to take is investing in farm insurance. In fact, like most land buying transactions, you won't be able to complete the purchase of the transition without an active farm insurance policy in place. That said, you might be considering issues such as:
- How much money you'll need to invest for proper coverage
- Is there one blanket policy you'll need to purchase?
- Are there separate policies you'll need to purchase for all of your specific farm assets?
Here's what you need to know to decide what size and type of policy is right for your needs.
There's no such thing as a blanket farm insurance policy
While a blanket policy that provides coverage to your farm and its assets would make life easier for you, that's not how things work. You will be able to purchase a basic policy that provides coverage for liabilities and your property. But once you take inventory, you'll quickly realize that your assets will require very specific coverage of their own. First, there's the issue of whether or not you're using your farm in order to generate profit. If so, then you'll need to provide very specific coverage for your equipment, along with coverage for your employees. You could possibly experience liability for any independent contractors you hire. Then, there's the issue of the type of agriculture you're farming. Will you be specializing in raising plants or animals? The answer will also determine what type of riders and endorsements you'll need to purchase.
There are specific deductibles to be considered as well. It's important to keep in mind that the more you pay in deductibles, the less your premiums will be. You might be able to get away with paying a lower deductible for your homeowner's policy, but this isn't something you should attempt when you're talking about your farmer's policy.
Additionally, will you be living in a residential building on the farm, or is your residential home built on another location outside of your farmland? Both of these things determine what policy you will need.
How much will all of this cost?
There's no easy answer to this question because farm insurance policies are very nuanced. You'll need to work with a property and casualty insurance agent who specializes in writing farm policies. It's in your best interest to schedule a time to have the agent tour the property and inventory your assets so that they can give you a concise policy quote. Check out this site http://www.wrg-ins.com/ or similar sites for more information.