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How Farm Insurance Works
How Farm Insurance Works – Hobby vs. Commercial
When considering how farm insurance works there are three criteria which help decide if your farm is considered a Hobby Farm or Commercial Farm. An insurance broker needs to know the following details in order to provide the right insurance:
• The size, or acreage, of the land.
• How much income, if any, the farm generates.
• How much livestock is on the farm.
How Farm Insurance Works – Hobby Farms
Think small – in farm insurance terms, a hobby farm must:
• be 10 working acres or less in size,
• generate up to $8,000 per annum only,
• have less than six animals or livestock, with the exception of saddle animals.
How Farm Insurance Works – Commercial Farms
An insurance broker will ask plenty of questions in order to provide the correct recommendations to insure a commercial farm. The following areas are evaluated:
• Crops
• Machinery
• Livestock
• Farm Buildings
• Land rental and properties
If your home is located on the farm property, a separate Homeowners policy is required.
Farm Policy Requirements
Liability Insurance, Home Insurance, and Business Interruption Insurance are three important coverages to have in place for commercial farms. A separate homeowners policy is required for personal dwellings and if there are farm vehicles on the property a separate auto insurance policy is required.
Understanding how Farm Insurance works requires a more personal level of service and working with an experienced broker will provide peace of mind and reassurance that all of the right coverages are in place. Call us for advice at 1-877-454-4476 or visit our quote page to speak with a broker to see if we can find a better insurance solution for you.