Farm Insurance FAQ
(You've got questions, we've got answers)
Written by
Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for TrustedChoice.com on a continuous basis and is here with the facts about all your insurance inquiries.
Reviewed by
Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.
Table of Contents
Q. Are my farmhouse and personal vehicles covered under my commercial farm policy?
Q. How does a commercial farm cover livestock?
Q. How are my crops covered under my commercial farm policy?
Q. How will my farm policy pay for heavy machinery and equipment?
Question: Are my farmhouse and personal vehicles covered under my commercial farm policy?
As a new farm owner, I’m curious about what all is covered under my farm insurance. Does my farm policy include coverage for my farmhouse and personal vehicles?
Yes, your commercial farm policy is a package and has coverage for your farmhouse. A farm policy is a unique mixture of commercial and personal coverages because most farmers live on their farm and as such need coverage for both their personal and commercial operations. Your farmhouse would have coverage just like a regular homeowners policy would.
Question: How does a commercial farm cover livestock?
I have been thinking about getting livestock at my farm and was wondering if my commercial farm insurance would provide coverage for them? If so, what coverages can be expected?
Insurance for livestock is covered under your commercial farm package and can be either added as an endorsement or a separate policy. The policy can provide coverage for the value of your livestock should they need replacing. Even if they get attacked by a predator, get caught in a barbwire fence, or stolen, a livestock policy will cover it.
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Question: How are my crops covered under my commercial farm policy?
Since I'm producing crops for the first time, I am not positive what crop insurance covers and how much I need. What if my crop is low yielding. Is there coverage for that?
There are separate policies for your crop insurance. The one that covers multiple claims is called Multiple Peril Crop Insurance, and the other is for hail, specifically called Crop-Hail insurance. Multiple Peril Crop Insurance or MPCI will be the policy that will provide coverage for low yielding crop years due to drought, pests, and the like.
Question: How will my farm policy pay for heavy machinery and equipment?
Since I have taken over a farm, we will be purchasing our first piece of heavy machinery. I need to know how we get coverage for this and what will be covered exactly?
Coverage for your farm's heavy machinery and farm equipment will be covered under your farm's package policy. It will typically cover the value of each piece of machinery or equipment that is listed on the policy and will protect against fire, weather, theft, or vandalism perils that take place.