It probably comes as no surprise that farmers have different insurance needs than people who live in a house or condominium.  In addition to the residence issues, you have to consider the business side of things as well. Below are some of the key items covered under a basic ranch or farm insurance policy.

What Does Ranch or Farm Insurance Cover?

1. Dwelling & Outbuildings

A basic farm or ranch insurance policy covers damages to your dwelling, just as a homeowners insurance policy would. It pays for losses due to storms, fire, falling objects, vandalism, and several other perils. However, most do not cover floods, earthquakes, or mudslides. In addition to the dwelling, you need to customize your policy to cover barns, sheds, grain bins, and other structures on your property.  Unlike a homeowners policy, there is no automatic coverage for “Other Structures.”

2. Personal Property

Personal property coverage, as it does for homeowners insurance, pays for damage or theft of your personal contents. This includes furniture, clothing, appliances, and other belongings of a personal nature. In order to include this as part of your farm package, your farm dwelling needs to be owner-occupied, not rented out to others.

3. Farm Personal Property

Farm personal property coverage pays for losses to your farm or ranch "personal property" as distinguished from "real property," or buildings. It covers farm machinery and tools, as well as other materials you use in operating your farm. It also covers losses to stored grain as well as livestock.

4. Crops

Crop insurance is not usually part of a basic farm insurance policy, although you can purchase it separately and it is an essential insurance component of your farm coverage. It protects you against the loss of your crops due to weather-related perils—ex. hail, flood, fire (from lightning), drought—or the loss of revenue due to unexpected price declines in conjunction with a lower than expected yield.

To discuss your ranch and farm insurance options with an experienced professional, contact Hummel Insurance Services in Oakland, IA. They've been serving businesses, individuals, and farmers throughout Pottawattamie, Mills, Montgomery, Cass, and Shelby Counties since 1944. In addition to farm and crop insurance, they also specialize in auto, home, health, and life insurance coverage. Visit their website to view location information and business hours or call (712) 482-6424 to speak with a friendly, helpful insurance agent.