What You Need To Know About Ranch Insurance

What You Need To Know About Ranch Insurance

October 13, 2023

Ranchers face unique risks and liabilities not addressed by standard personal or commercial insurance policies. Luckily, farm and ranch policies are designed to address these specific risks. Farm and ranch policies can include property coverage, liability coverage and more. Chat with an experienced insurance agent to determine how these policies can keep you safe.

Property Coverage

The property coverage benefits available under Ranch Insurance protect your home, farm buildings and equipment. It also offers liability protection. A ranch policy’s home/dwelling portion works similarly to traditional homeowners insurance. The policy also covers farm personal property like tractors, machinery, tools and irrigation equipment. Depending on your policy, you can choose blanket or scheduled farm personal property coverage. Using motorized vehicles like a pickup truck or semi for commerce may be secured by an isolated commercial auto protection approach. It is important because standard auto policies typically exclude commercial use.

Farm insurance covers crops (like feed, grain, seeds and other agricultural products) as long as they’re in storage. Once planted, however, they aren’t covered under farm insurance and would need to be protected by a commercial insurance policy. For this reason, it’s important to work with an agent who understands your industry.

Additional Living Expenses Coverage

While most farm and ranch policies provide personal property and liability coverage, they often include specific coverages to protect farmers from additional risks. These may consist of specialized coverage for livestock and crop insurance. Like homeowners insurance, a farm and ranch policy typically covers your dwelling; personal property like appliances, clothing, furniture and more; and outbuildings like barns, stables, sheds and detached garages. Unlike a typical homeowners policy, however, the personal property section of a farm and ranch policy usually includes the equipment you use for commercial agricultural purposes, such as machinery, tools, tractors, feed, seeds and fertilizers. It may also include vehicles used for farming, such as a pickup truck, though in some cases, they might be better served by a commercial auto or business auto policy. Working with a knowledgeable agent is important to ensure you are fully protected from all potential losses and exposures related to your ranch or farm.

Liability Coverage

When you have a farm, ranch, orchard, vineyard, equine operation, or other agricultural property, there is much more at risk than what is covered by traditional homeowners insurance. These properties often have commercial activities that increase their liability exposures. A specialized policy like ranch insurance may be needed. This coverage protects the dwelling, farm structures, personal property, equipment and livestock. It also offers protection for agribusiness liability. In addition, farm and ranch insurance can also provide excess liability coverage, similar to umbrella insurance, that increases the payout limits of an underlying insurance policy. The livestock part of ranch insurance typically includes two options: Scheduled, where each animal is listed on the contract schedule to obtain a higher limit, and blanket coverage, where all animals are insured under one overall limit. This policy can also include business interruption coverage that covers the loss of income when your farm can’t operate due to damage or a disaster.

Equipment Coverage

Running a ranch or farm can come with many unique financial risks. From natural disasters to food poisoning lawsuits, it is important to have a policy in place to protect your assets. Generally, the most cost-effective and efficient way to obtain property and liability coverage is with a farm and ranch insurance package. These policies are similar to business owner’s insurance but with a few additional features specific to the agricultural industry. Machinery and equipment coverage is available in a farm and ranch insurance policy to protect the expensive equipment you use to run your operation. It can include tractors, combines, shredders, plows, cotton strippers, hay balers and more. Depending on the insurance company and policy, this may consist of vehicles (like a pickup truck) used for farm work. Livestock is another important element to consider. These can be covered under livestock insurance to protect against various perils, including death or loss of income.

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