How to Determine If You Need Farm Insurance

Agribusiness insurance is one of the emerging trends in the insurance industry where people are slowly becoming aware of the importance of accessing protection for your home. Ideally, ranch insurance covers your entire home including livestock and agricultural operations. The greatest challenge that insurance companies are having today is that there is still a significant number of people who are still struggling with the idea of farm insurance. Unlike other insurance policies such as auto insurance, life insurance and health insurance, ranch insurance is yet to make headways in the society-possibly because people don’t know if they need it. Since farmers spend most of their time working on their property, loss of property can be devastating. This is how to establish whether you need ranch insurance.

Do You Live on the Property?
This is rather straightforward when considering ranch insurance. Ask yourself if you happen to live in a farm or ranch. A standard homeowners insurance does not offer enough coverage in case of loss of property. There are also some certain aspects that are covered in a farm insurance but not covered by a homeowners insurance. For example, ask yourself whether there are structures in the homestead other than a garage or a pool that might not be covered by a standard homeowners insurance. If there are sheds, barns and stables, then you definitely need a farm insurance. In addition, using smaller structures such as greenhouses to grow crops might necessitate the need for a ranch insurance policy.

Types of Animals on the Property
The kind of animals on your property will determine whether you require a farm insurance policy. A typical home will have animals such as pets that might not require extensive coverage. However, keeping animals for commercial use requires you to have adequate coverage in the event of a loss. For example, horses-however few they may be, require ranch insurance. This is because in the event of a loss, the amount or revenue lost could be colossal. There are other types of farm animals that homeowners might not pay much attention to. For example, if you are keeping a few dozen pigs in the farm, the issue of farm insurance might be overlooked since they will ultimately be considered as being for domestic use. However, if you are preparing the same pig for slaughter, the likely revenue loss could easily surpass the cost of procuring a ranch insurance cover.

Number of Workers on the Property
An average farm or ranch can span approximately 500 acres. This means that a single family will easily be overwhelmed in terms of farm management. This is the reason why most farm owners employ people to work on these farms. Considering the unpredictable nature of risks, having adequate insurance cover is paramount for the workers on site. The challenge for most people is that procuring multiple insurance policies for the workers always appear like a costly affair. However, ranch insurance would appear like an umbrella policy that covers everything within the property including the workers.

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