Farm insurance not only covers the business against liability, crop failure, equipment damage, and the vicissitudes of the commodity market; it also covers your farmhouse against losses due to fire, storms, falling objects, and theft. It is an essential risk management tool for anyone who makes a living at the whim of Mother Nature. However, the cost of coverage varies based on numerous factors. Here are some of the most common.

4 Factors That Affect the Cost of Farm Insurance

1. Age, Condition, & Size of the Home

The size, age, and condition of the home also affect rates. Larger homes cost more to insure because they cost more to rebuild. Older homes often have more structural problems and buildings in bad repair are often at risk of causing injury or experiencing property damage. For instance, many insurers offer discounts if the home has recently been reroofed or re-sided.

2. Risk Factors on Your Property

Some properties are just inherently more risky for carriers to insure. For instance, if you have a pond on your property, you will likely pay more because of the increased risk that someone could drown while swimming. For another example, if part of your business includes offering horseback rides to visitors, you'll pay more because of the increased risk of someone falling off, being bitten, or being kicked by one of the animals.

3. Credit History

Surprisingly, insurers have found a correlation between responsible credit use and a low risk of filing claims. Therefore, if you pay your bills on time, get current on past-due accounts, and avoid charge offs and bankruptcies, you'll likely pay less for farm insurance than someone with a history of bad credit.

4. Prior Claims

If you have a history of filing insurance claims—even for reasons that were no fault of your own—you'll almost certainly pay a higher premium. It means you are more likely to file another claim in the future, so insurers take this into account when pricing.

For expert assistance designing a farm insurance policy, contact Advantage Insurers in Demorest, GA. They are an independent insurance agency that serves clients in and around Habersham and White counties. They are a proud member of the Trusted Choice Network of Independent agencies and are known throughout the region for their commitment to customer service. In addition to farm insurance, they also carry auto, home, life, and business insurance. Call them at (706) 754-1590 or visit their website to request an insurance quote.