If you're getting ready to purchase insurance for your new farm, be prepared for the process. Purchasing insurance for your farm is a lot different than purchasing basic homeowners or auto insurance. It has to be different. Running a farm is an intricate business, even if you're running it as a hobby farm. Before you start shopping for farm insurance, here are four things you'll need to know:
Know What Kind of Farm You Actually Have
When it comes to owning a farm, one-size-fits-all does not apply. While all farms may have the same basic components – livestock, crops, and machinery – that's about where the similarities end. Before you purchase your insurance, you need to know what type of farm you own.
If you've purchased a basic hobby farm, and you don't plan on making money from it, you may be fine with a homeowners policy. Most homeowners policies will cover your hobby farm, as long as anything you produce will be used strictly for you and your family.
Hobby Farm For-Profit
If you're going to take your new hobby farm one step past family use and try to make a little money on the side from the crops you raise, you're going to need an insurance policy that covers for-profit hobby farms. This type of policy will provide the protection you need when you decide to sell your crops, or your livestock as part-time income flow.
Full-Time For-Profit Farm
If you've purchased a for-profit farm, and you intend to make it your full-time business, you're going to need farm coverage that not only protects you against damages, but that also protects you from liability.
Make Sure Everything Is Covered
When you begin your search for farm insurance, make sure that everything on your farm will be protected. Unlike homeowners policies, farm policies are designed to fit the specific needs of each individual farm. For instance, if you have heavy farm equipment, outbuildings, or livestock, you'll need to ensure that any policy you purchase will cover those options.
Be Prepared for a Visit from Your Agent
If you're planning on purchasing your farm insurance online, you'll need to make other plans. Farm insurance is one coverage that you won't be able to purchase online. That's because an agent will need to come out and inspect your farm. They'll need to get a clear picture of everything you have on your farm and the type of coverage you'll need.