THURSDAY, MARCH 25, 2021
How Much Does It Cost to Insure a Farm?
The cost of farm insurance varies on several different factors from your farm’s location and size to coverage limits and policy types. As an estimate, farm equipment may be insured around $15 for $1,000 in value. For example, say your combine is worth $380,000. This means it would cost approximately $5,700 to insure.
What Does Farm Insurance Cover?
Farm insurance covers a range of dangers and items unique to farms. Coverage included in farm insurance are:
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General Liability covers accidents of bodily injury or property damage of a third party on the farm property. Farms and ranches especially need this if they host events, offer tours or provide horse riding lessons. This insurance can help with the victim’s medical expenses as well as the farm’s legal expenses should the victim decide to sue.
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Farm Products covers products produced by the farm such as wheat, grain, etc., in case they are lost or damaged due to a covered disaster such as fire or lightning.
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Livestock insurance provides the farm compensation if livestock is injured or killed. It can even cover livestock killed or injured in transport. Livestock commonly covered under this insurance include cattle, sheep, emu, horses, bison and deer.
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Farm Machinery and Equipment covers crucial machinery and equipment. This includes tractors, combines, field equipment and more. This insurance compensates for incidents involving fire, lightning, theft, vandalism, hail, wind and explosions
Depending on how much insurance you have and at how much coverage, the price you pay for farm insurance may be vastly different than your neighbor’s. Calculate the value of your equipment before searching for coverage to find a policy that is right for your farm. Every farm is different and may need different limits of insurance.
Farms that specialize in livestock, for example, should have higher limits on livestock than farms that specialize in crops. The type of livestock a farm has influences the cost of insurance. For horses, farmers generally pay between 2.5% and 5% of the horse’s total value in insurance. A horse at a value of $5,000 and a rate of 3% would be about $150 a year for a single horse.
If you are uncertain about your farm insurance policy or want to find ways to save money, be sure to compare quotes with multiple insurers and ask an insurance agent any questions you may have.
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