Investing in farm insurance is an important thing for some business farm owners or hobby farm owners. Take a look at some of the most common myths about farm insurance and the truths you should know.
Myth: There is a standard farm policy built for all farms.
There is no one-size-fits-all farm insurance policy, even though this is an ongoing misconception. Farm policies are custom built for the customer because every farm can be different in its own way. For example, one farmer may have a lot of livestock and they will need loss insurance in case something goes wrong, but another farmer may have no livestock and a lot of on-site customers, so they need a good level of liability coverage. Building the proper farm insurance policy can take a lot of insight into how the property is used, how the business functions, and what risks are present.
Myth: Blanket insurance policies are always the best way to go for farm coverage.
Blanket insurance policies are nice. These policies are designed to offer some level of protection for the farm's structures, equipment, and even the livestock. However, blanket coverage is actually not always the best option for everyone. These blanket policies can have limited coverage values. For example, you may only have a $2,000 policy for livestock, but if you have $10,000 worth of livestock, this will not suffice.
Myth: Farming for-profit and farming for sustenance require the same farm insurance.
Farming purely for your own benefit is not treated the same as farming for profit where insurance is concerned. Yes, you may have some of the same coverage needs, such as coverage for your farm equipment or for your livestock. However, business coverage is a lot different; you have product and property liabilities that a hobby farm would not, and you probably have greater risks involved if there is a loss. You may even have employees, which brings on even more insurance requirements. Therefore, the policies for either of these farms are actually going to look much different from the other.
Myth: Homeowner's insurance will cover a hobby farm.
Homeowner's insurance can cover some aspects of a hobby farm. For example, if you have a tractor on your hobby farm, a storm blows through, and that tractor is destroyed, your homeowner's policy may cover that tractor. However, standard homeowner's insurance may have limitations on things like structures, livestock, and things of that nature.
For more information, check out sites like http://www.wrg-ins.com/.