We have been insuring farms of all sizes across Texas since 1949. Whether you are thinking about selling produce from your garden at the local farmers market or making your farm your full-time job, it is important to make sure that you understand the ins and outs of farm insurance coverage.
Your Standard Homeowners Policy Covers Some Farming Activities
Many treat their large garden or small farm as a hobby and have no intention of making money. If you fall into this category, it’s possible that your standard homeowners insurance policy will cover some of these farming activities. But, keep in mind that homeowners insurance policies generally exclude things like farm equipment and farm outbuildings. Make sure to speak with your local insurance agent to find out precisely what coverage your homeowners policy provides.
If You’re Farming for a Profit, You Will Need a Different Policy
The moment the income you derive from your home’s land and other resources exceeds the “incidental income” threshold laid down in your homeowners policy, the game changes. In the eyes of your insurer, you’re now a business, and there’s a high chance things you thought were covered no longer are, and require additional coverage or endorsements.
If Farming is Your Full-Time Occupation, You Will Need a Farm Owner’s Policy
A basic farm owner’s policy generally includes property coverage, liability coverage, and more. To better protect your livelihood, this basic coverage should be modified with endorsements based on your farm’s unique needs.
Farm Insurance Coverage is Not Standard
A common misconception about farm insurance is that a policy is one big bundle of predetermined coverages. In reality, farm insurance policies have so many different aspects that there is no standard policy. Each farming operation is unique and a policy should be custom built for the needs of the farmer.
You Need Special Coverage for Livestock
Depending on the types of animals you have on your farm, you will likely require special coverage for livestock. A few options to consider include individual coverage, as well as blanket coverage. Keep in mind that the maximum amount payable per head is dependent upon your choice of insurance (i.e. individual or blanket), so be sure to talk to your insurance agent about which option will work best for your operation.
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