Buying farm and crop insurance is one of the most important ways to protect yourself if your livelihood depends on the harvest. If you are not currently covered, First State Insurance Agency in David City, NE, offers some compelling reasons why you should be. The following information should help you understand why farm insurance is essential for anyone who owns farmland.

5 Reasons You Need Farm Insurance

1. Protect Your Home & Personal Property

Farm insurance usually contains a dwelling coverage component that protects your home. For example, if your dwelling suffers damage due to fire, storm, vandalism, or other named hazards, your policy covers the cost of repairs. In addition to the structure of your home, farm insurance also covers the loss of its contents. This includes electronics, clothing, appliances, furniture, and other personal property. You can also customize your policy to cover other structures such as barns, sheds, grain silos, and even fences as needed. 

2. Protect Your Farm Equipment

Farm personal property—which is distinct from household property—is also covered. You can purchase broad coverage for grain, tools, and other items used in your agribusiness. For the utmost protection, you should purchase individual riders for your high-cost equipment like plows, tillers, and cultivators. This ensures that you receive full value if they sustain damage.

3. Guard Against Liability

Farming can be dangerous, so farm insurance pays for medical treatment and repairs if you or a member of your household should accidentally injure someone or damage their property. For instance, if you should injure someone while operating a harvester, your farm insurance policy pays the doctor's bill. If an animal escapes, crosses a road, and causes an accident, insurance will protect you from paying out-of-pocket for damages. Your policy also pays for any legal fees arising out of these incidents.

4. Protect Your Crops

Crop insurance pays out if your crops are damaged by fire, insects, weather, or drought. It also covers unexpected drops in market price. So if prices drop just before harvest, your insurance will bridge the gap to protect your financial security.

5. Protect Your Livestock

The simplest way to protect livestock is with a policy that covers your entire herd based on the market price for each animal. For high-end animals like a prize bull or thoroughbred horse, you can purchase individual coverage to ensure you receive full value for any loss.

Farm insurance is an essential risk management tool. To discuss your coverage options with an experienced professional, contact First State Insurance Agency. For your convenience, they maintain locations in Beatrice, Hickman, and David City, NE. They also specialize in home, life, business, and auto insurance, so they are effectively a one-stop shop for all your coverage needs. Call their all-agency number (402) 979-7585 to request an insurance quote, and visit them online to view a list of their insurance products.