Understanding the difference between homeowners insurance and farm insurance is useful for selecting the right policy. Otherwise, you’ll be left without support and have to pay for damages on your own. Consider the following to determine their unique limitations and how they can provide the coverage you require. 

What’s the Difference Between Home & Farm Insurance?

What Is Homeowners Insurance?

This type of insurance focuses directly on covering the family’s home and related structures. Any buildings that may be used for business, such as barns, feed storage, and tack rooms, are not eligible for coverage. It doesn’t matter if they’re for personal use. The fact remains that they have the potential to become a business venture, which automatically disqualifies them from this particular policy.

Exclusions are also in place for any non-owned property that’s in the care of the homeowner. Whether you’re boarding a horse for a friend or maintaining a nearby pond, any damages that occur won’t receive coverage. There may be exceptions, but you’ll have to talk it over with an insurance agent.

What Is Farm Insurance?

On the other hand, farm insurance does not cover residential structures or related materials. It’s strictly made to protect anything that’s directly related to the business side of things, including equipment, feed stores, and animals. The policy will list each item individually to ensure a true estimate of its value. This serves to identify the purpose of each piece so that there are no limitations on how they can be used.

Farm insurance is also not standard. Agencies recognize the individuality of these properties and personalize their policies to meet specific needs. For instance, a farm with livestock may require an additional amount of coverage than a farm that deals only with the seasonal harvest. Going over each asset with your agent should reveal what to include in the policy.

If you’re in need of insurance, reach out to Barron Mutual Insurance Company. These professionals have been serving the community since 1891 and specialize in homeowners, liability, rental, and farm insurance. They treat each customer like family and offer some of the most competitive rates in the region. While based in Barron, WI, their service area extends throughout Bayfield, Burnett, Washburn, Sawyer, and the surrounding counties. Call (715) 537-5141 to request a quote or visit their website for additional information on their policies.