Farm & Ranch: FAQ

Jul 11, 2018

What’s the difference in Farm & Ranch Insurance and Homeowners Insurance?

Farm and ranch insurance is generally a mixture of homeowner’s insurance plus business liability insurance, and will generally cover the buildings and equipment found on a farm as well as a farmer’s house.

What does a Farm Insurance Policy Cover?

As a general rule, most farm insurance polices will provide the following coverages:

– Dwelling or home protections: Covers your home in the event of major perils, such as windstorms, hail, lightening and fires;  accidents, such as a vehicle damaging your home, theft or vandalism; & covers personal belongings in the home.

– Farm liability protection: Protects you from losing your farm due to liability issues.

Is my farm covered under my Homeowners Insurance Policy?

A standard homeowners policy will cover some farming activities, but generally excludes things like farm equipment and farm outbuildings.

Coverage under your homeowners policy also depends on whether you receive income from your farming activities. Most homeowners policies will include a set “incidental income” threshold. Once you meet or surpass this threshold, your property is now treated as a business and may require additional coverage or endorsements.

What Is Ranch Insurance?

A ranch is a large farm that breeds animals like cattle, sheep, or horses. Normally, when insurance companies offer ranch insurance, it is defined as a farm policy that also provides additional risk protections for livestock, such as animal mortality insurance.

A ranch insurance policy will also cover home and belongings, other ranch structures, ranch operations equipment and more. It will also provide protection for the liability risks you face in this line of work.

Are my Livestock covered?

Ranch insurance property coverage will often include some protection against the death of livestock, including cattle, horses, sheep, and pigs. These may cover accidental deaths by multiple causes, such as weather events and death while transporting animals. To cover death by sickness and disease, you will probably need to add a specialized animal mortality policy. These can normally be underwritten to cover a herd or high value animals on an individual basis.

What is Farm Insurance?

A farm insurance policy combines the standard coverage offered by a personal homeowners policy with commercial property and liability coverage.

Will my farm insurance policy cover agri-tourism activities on my farm?

If you are considering agri-tourism activities on your farm, whether they are a one-time event or a daily occurrence as part of your business, we advise you to talk with your insurance agent and review your current coverage before making any changes in your operations.

What other coverages do I need?

Many ranch insurance packages cover the property side of the ranch business, but do not provide for the business loss provisions in a business owners policy or BOP.

Normally these can be added as an endorsement to your ranch insurance policy. Other business protection coverages you may be interested in include:

– Business income or loss: Covers your lost revenue and operating costs if a business interruption is caused by a covered incident

– Commercial vehicle: Protects your trucks, vans, and specialized vehicles used for business purposes

– Workers Compensation: Covers your employees if they get sick, injured or die as a result of your ranch operations; legal requirements to carry this policy vary, so ask your agent about the law in your state

– Professional liability or errors and omissions insurance: Protects you if you unintentionally cause financial harm to someone as you are carrying out your business or professional duties


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