As any farmer and rancher will tell you, running a business is a rewarding venture. Yet, there are plenty of risks involved. Thankfully, farm and ranch insurance is designed to provide financial protection from many of the most common dangers. Here’s a closer look at how the coverage works and what's involved. 

How Does Farm & Ranch Insurance Work?

Running a farm or ranch has similar coverage needs to any other business, such as liability and property. However, there are also personal needs involved, as most properties also feature a home. For those reasons, farm and ranch policies combine the bulk of coverage from both home and business insurance. With these plans, you can essentially tailor the protections based on your current situation. 

What's Typically Covered?

No two are identical, so the coverage areas of farm and ranch insurance vary based on circumstance and provider. Typically, the primary components consist of protection for the dwelling, personal belongings, and business-related structures, such as barns. Livestock and supplies, like feed, can be included. Additionally, liability insurance for both the entirety of the property and related operations are standard. 

While machinery and tools utilized for daily farm operation can be covered, the protections may only apply to unexpected perils, like severe weather. It also may not cover fencing. If the replacement value of certain tractors or equipment is higher than the maximum limit on the policy, purchasing additional coverage may be required. For produce and grain-focused operations, the policy may cover the seeds while they’re stored, but it doesn't extend to the crops themselves. 

Need dependable farm and ranch insurance? Reach out to the team at Western States Insurance Group, Inc. in Lovington, NM, to learn about your options. This local agency proudly serves the needs of drivers, property owners, and business owners across Lea County and the surrounding areas, including Hobbs, Lovington and Tatum. Get to know the agents and their service offerings online or call (575) 396-1318 to request an insurance quote.  Follow Western States Insurance on Facebook.