Farm insurance is a necessity for any working farm or ranch business in Texas.
Getting the right farm policies so your entire investment and livelihood is protected can be tricky, making it important to understand what is covered and what isn’t.
Make certain that you purchase the right policy for your needs by working with a farm insurance agency that can offer you the best advice and help you protect your farm, your ranch home, and everything on your property with the right policies.
Complete Protection - Have the Right Farm Insurance Coverage
Because a working farm or ranch will have on it many different structures, items, and animals, it’s essential that you understand how farm insurance agencies view these properties and how they must be protected.
You should also understand which policies provide which coverage so that any loss you have will be protected.
Farm insurance is not an all-inclusive policy.
From the dwellings and fencing that may be on your property to the equipment and livestock, each risk may fall under a different type of insurance.
Different Types of Farm Insurance - What Do They Cover?
A Texas farm or ranch operated as a business falls outside of any homeowners policy, no matter how large or small the operation may be.
As such, these businesses typically need a variety of farm insurance policies so they are thoroughly covered for the range of losses that could affect them:
Homeowners Insurance - Whether your operation is a working farm, a hobby venture, or just your personal property that you generate no income from, the building that is your home or the main home dwelling on a farm or ranch property must be covered by a homeowners insurance policy. Like any standard policy, this will protect your home against named perils, your personal property up to the policy limits, and even a few outside structures like sheds and pool houses as the policy permits.
Barns and Buildings - The next main insurance policy your operation should have is one that covers your barns and agricultural buildings. From livestock barns to equipment sheds, this policy will cover the buildings themselves as long as each one is named on the insurance policy.
Fences, Pens, and Sheds - Fences are not included in most farm insurance coverage, nor are animal sheds, corrals, gates, and other associated structures. These items should be insured separately with a policy from your farm insurance agency designed to protect these structures only.
Farm Property and Equipment - Unlike a homeowners policy, the business property and equipment held within your agricultural buildings is not automatically covered by the policy that covers those structures. You must purchase enough separate coverage so that anything stored within those buildings is protected in the event of damage, loss, or theft.
Livestock - Horses, cattle, and other livestock must also be insured under their own farm insurance policy. There are differences in these policies as well, between stock herds, valuable breeding stock, and animals used for show or competition.
Liability - Beyond insurance policies that cover structures, property, and even animals, your operation may also require certain types of liability coverage beyond the basic coverage provided with a homeowners policy, especially if you have employees, customers or clients come to your property, or you sell any kind of produce or food product.
Know Your Farm Insurance Coverage to Stay Protected
Farm insurance can be a complex topic for any Texas farm or ranch business owner.
There are many different policies that may apply to your specific business which you should purchase to ensure your total investment is well-protected against all the perils that could affect it.
It’s essential that you discuss your property and business with a knowledgeable Texas farm insurance agent who will take the time to understand what your business does and how it does it, then help you choose the most complete agricultural insurance coverage!