Home Insurance Vs. Farm Insurance - What’s the Difference?
For those who live on a farm, you might be under the impression that your home insurance will cover your business operations. Unfortunately, most home insurance policies do not provide enough coverage to protect your business from unforeseen incidents, like a loss of machinery or a farm accident. To find out exactly what you need to optimally cover your farming operation, here we’ll explain the difference between home insurance and farm insurance.
Home insurance policies are designed to protect your property from accident, fire, burglary, vandalism, and certain natural disasters. Most policies only cover the dwelling, detached structures like your shed, and the household content. In some cases, your home insurance may also have additional coverage, such as condominium insurance, (to cover damage to common areas and improvements to your unit), tenant insurance, seasonal home insurance for your cottage or mobile home, and even coverage while you’re moving properties.
If you own or run a farm, you need special insurance to cover your business. Most basic farm policies will cover the dwellings you own, the farm structures, machinery, livestock, poultry, produce, and your personal property. It may also provide you with general farmers' liability coverage and pollution liability protection. But not all policies are the same and you may need to add additional coverage for things like loss of farm machinery, power interruption, business interruption, farm accidents, sewer backup, and employer liability. Fortunately, farm insurance can be tailored specifically for your needs. All you need to do is talk to an insurance broker who can assess your farm operation and determine exactly what type of coverage you require to adequately protect your business.
What to Consider When Choosing A Policy
Now that you know what the differences are between home insurance and farm insurance, you will want to have a clear understanding of what options are available to you. There are many different farm insurance products out there to choose from but not all might be right for you and your specific type of operation. Each farm is different in terms of their coverage requirements and risks. So, it’s essential to discuss your needs with an insurance broker. Unlike an insurance agent, a broker does not work for a specific insurance company – they work for you. And their job is to assess your unique needs and find a policy that is best for your farming operation. They have access to a large pool of providers which allows farm owners to access the right coverage for their business needs.
If you own a farm and are looking for a policy that works for your business contact our insurance brokerage team at MLS Insurance for your free assessment and quote today. Our family-owned and operated brokerage are here to help you.