Whether you have a hobby farm or a commercial farm, hopefully you are playing it smart by taking out a farm insurance policy that will fully cover any incidents that take place on your land. Farm insurance policies can differ in some ways, though,when compared with a typical homeowner's policy or your car insurance. To get the most out of your farm insurance, here are some important tips to keep in mind.
More Than Just Crops
When most people think of farm insurance, they might imagine a policy that will pay out if the farm gets hit by a fire or some other natural disaster that destroys crops or ruins the land. While crop insurance is often a part of the policy, you should also be aware of your coverage for things like accidents with equipment or liability from someone getting injured on your property. If you have staff working for you on your farm, a complete farm insurance policy will pay out if one of your workers is injured on the job or you have equipment destroyed in an accident. Read your current policy's fine print, and make sure you are fully covered for all contingencies.
Inquire About Loss of Income
While many farm insurance policies may pay out for the value of your land if that land is damaged or destroyed, there's another consideration here to keep in mind when it comes to the crops that grow on said land. If you know that your crops bring in a certain amount of money at every harvest, you can be insured for loss of income if something happens to your crops. Such an addition to your policy will ensure that your family still receives a comparable amount of money to what you would have gotten if you were able to take all of your crops to the local market.
You May Need to Expand Your Policy If Your Farm Expands
If you started out with a small or hobby-sized farm but now have your sights set on something larger, you need to contact your farm insurance provider and let them know about the expansion. Policies that cover smaller or hobby farms often have specific restrictions, like not providing coverage for employees or only covering a small number of acres. If your farm is expanding past these limitations, you will need to take on a new or different policy than what you have now in order to maintain full coverage.
To learn more about farm insurance, check out websites like http://www.wrg-ins.com/.