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What Does Farm and Ranch Insurance Cover?

What Does Farm and Ranch Insurance Cover?

Farmers and ranchers are the backbone of any society; they work with land and livestock to make sure we have food in our markets and on our tables! As such, they need to make sure that their assets are protected. This is where farm and ranch insurance comes in.

Farm and ranch insurance, also known as rural property insurance, is an often overlooked but very important type of insurance for those in the agricultural industry. But what does it cover, exactly?

What is Farm and Ranch Insurance?

At its core, farm, and ranch insurance is a specialized form of property and liability insurance. It’s designed specifically for farmers, ranchers, and other agricultural professionals. Whether it’s a hobby farm or an agriculture project, farm and ranch insurance aims to protect the policyholder from financial loss due to various unforeseen circumstances that impact their farming or ranching operation.

What Does a Farm and Ranch Policy Cover?

The Farm and Ranch Insurance coverage in a policy varies by provider but generally covers different types of property damage, liability, and other losses. Some of the most commonly covered items in a farm or ranch insurance policy include:

Rural Property Insurance: Covering Your Home on the Range

When it comes to rural property insurance, what are we really talking about? It’s all about making sure the home where your heart is – and probably a good bit of your hard-earned cash – is well protected. After all, farming or ranching isn’t just a business. It’s a way of life, including your living quarters on the property. Under rural property insurance, your farm and ranch coverage is generally divided into two main areas: your main residence and any other structures on your property.

Home or Dwelling

Now let’s talk about that first part – your dwelling, homestead, and castle. The part of the policy that covers your home, often known as dwelling coverage, is designed to protect the main residential structure on your farm or ranch. That means the building where you and your family live.

First and foremost, this insurance covers the physical structure of your home. Whether it’s an old farmhouse that’s been in your family for generations or a brand new ranch house you’ve just built, the dwelling coverage in your farm and ranch insurance is there to protect it. It covers the cost of repairs or rebuilding if your home is damaged or destroyed by a covered peril, such as a fire, windstorm, or vandalism.

But it’s not just about bricks and mortar. Your dwelling coverage also extends to everything inside your home that makes it yours. We’re talking about your furniture, clothes, appliances – all your personal belongings. If your home was turned upside down and shaken, everything that would fall out is generally considered personal property and covered under this part of your policy. It’s a bit like shaking a doll’s house, only hopefully less messy!

Other Structures and buildings

Moving on from your main house, your farm and ranch insurance also covers other farm structures and buildings. And if you’re anything like most farmers or ranchers, you’ve probably got a few of those around!

Other structures and buildings are the buildings on your property other than your home. This can include barns, machine sheds, detached garages, storage sheds, and other structures used in your farming or ranching operation. So, if a storm damages your barn or a fire destroys your machine shed, this part of your insurance can help you rebuild.

But it doesn’t stop at larger buildings. Smaller structures, things like your fences, silos, or even a greenhouse, are also covered. Remember, these buildings and structures often house important equipment, supplies, and sometimes even livestock, so their insurance protection is crucial for the smooth operation of your farm or ranch.

It’s worth noting that coverage for other structures and buildings usually comes with a separate limit, typically a percentage of the dwelling coverage. It’s important to make sure this limit accurately reflects the value of the buildings on your property – because if disaster strikes, you’ll want to be sure you’ve got enough coverage to get you back on your feet.

What Does Farm and Ranch Insurance Cover?
sunlight over Dutch farmland in summer

Covering Your Farm or Ranch Equipment and Operations

Diving deeper into the details of your farm and ranch insurance, let’s talk about the lifeblood of your operation: your equipment, livestock, products, and other agricultural structures. After all, those are the gears that keep your business running day in and day out. Let’s dig in and see how your policy safeguards these indispensable assets.

Farm Machinery and Equipment

If you’re a farmer or a rancher, you probably know your machinery and equipment like the back of your hand. Whether it’s your trusty tractor, your indispensable irrigation system, or that combine harvester that’s worth its weight in gold during the harvest season, these are crucial tools of your trade.

Here’s where your farm and ranch insurance comes into play. It covers your machinery and equipment from a variety of unfortunate events. Suppose a windstorm causes a tree to fall on your tractor or a fire destroys part of your irrigation system. In these cases, your insurance steps in to help cover the costs of repairing or replacing that vital machinery.

It’s important to know that your equipment is covered, whether it’s at rest or on the move. So, if that tractor breaks down in the middle of a field or a piece of equipment is damaged while being transported, your insurance has your back. That’s some serious peace of mind right there!


When it comes to livestock, we’re dealing with a unique type of asset. Whether you’re raising cattle, sheep, pigs, poultry, or anything in between, these animals are a crucial part of your farming operation. They’re not just farm animals; they’re part of your livelihood and deserve protection.

That’s why farm and ranch insurance offers livestock coverage. It can protect if your livestock is killed or seriously injured due to a covered peril, such as lightning, fire, or even accidental shooting. Some policies might also offer coverage for theft.

However, remember that livestock coverage is generally limited to certain named perils and doesn’t typically cover death or injury due to disease or old age. So, while you’re protecting your animals, it’s equally important to take good care of them with proper veterinary care and preventative measures.

Farm Products

With the ever-changing climate, unpredictable weather patterns, and the rise of natural disasters, having the right kind of Farm Insurance is essential to protect your farming assets. As a farmer or rancher, you understand that your livelihood depends on your livestock, and equipment. Any damage to these farming essentials can result in a significant financial loss, halting the growth of your business. At our insurance agency, we prioritize providing comprehensive and customized Farm Insurance policies to ensure that your investment is protected against different risks. From covering farm buildings, livestock, machinery, and equipment to offering liability coverage, our Farm Insurance policies are tailored to meet your unique farming needs. Our team of experienced and professional insurance agents is available to help you choose the right plan for your farm business. Contact us today to learn more about how we can help secure your farming investments.

As any farmer knows, owning and running a farm is no easy feat. It requires hard work, dedication, and a deep understanding of the land and animals that are being raised. However, despite all of this hard work, farms remain susceptible to a variety of risks including severe weather, animal injury or illness, or equipment breakdowns. That’s why Farm Insurance is a crucial necessity for any farming operation. The right insurance policy can help protect against a variety of risks and liabilities, while also ensuring that both the farmer and the land are properly covered. From livestock coverage to liability insurance and beyond, Farm Insurance provides the peace of mind that farmers need to focus on their work without worrying about the unexpected.

Other Agricultural Structures

Last, but definitely not least, let’s not forget the other agricultural structures that play key roles in your farming or ranching operation. These might include structures like grain bins, greenhouses, or even permanent fixtures like irrigation systems.

Similar to coverage for other buildings, your farm and ranch insurance provides protection for these structures if they’re damaged or destroyed by a covered peril. Whether a windstorm damages your greenhouse or a fire ravages your grain bin, your policy is there to help you recover financially and rebuild these important structures.

Here’s a friendly reminder though: Don’t underestimate the value of these structures when setting your policy limits. If you’ve ever priced out a new greenhouse or grain bin, you know that these structures can represent a significant investment. Ensuring they’re accurately covered under your insurance can save you from potential headaches down the road.

And, don’t forget about fixtures like irrigation systems. An irrigation system can be as important as the fields it waters in many farming operations. If it’s damaged, you’ll want the peace of mind that your insurance coverage can help you get it back up and running as quickly as possible.

Farm and Ranch Liability Coverage

So, we’ve covered the ins and outs of protecting your property, equipment, livestock, farm products, and other crucial structures. But what happens if someone gets injured on your property or if you’re found responsible for damage to someone else’s property? That’s where your farm and ranch liability coverage comes into play.

The first thing to understand about liability coverage is that it’s there to protect you against financial fallout from a wide range of potential incidents. Say a visitor trips over a piece of equipment and breaks their arm, or one of your animals escapes and causes damage to a neighbor’s property. These situations could result in lawsuits that can be costly, even if you’re not at fault.

That’s where your farm and ranch liability insurance steps in. It can help cover the costs of medical bills if someone is injured on your property. Plus, if you’re sued, it can help with legal expenses, including attorney fees, court costs, and any settlements or judgments against you.

But wait, there’s more! Liability coverage also extends to damage caused by your farming operations. For instance, suppose you accidentally spray a pesticide that drifts onto a neighboring property, damaging their plants. Your liability coverage can help cover the costs associated with this damage.

However, it’s important to remember that liability coverage has limits. These are usually defined in your policy, and you must choose a limit that reflects the potential risks associated with your farm or ranch operations. Too little coverage could leave you vulnerable to out-of-pocket expenses if a claim exceeds your policy limits.

Lastly, remember that certain activities might not be covered under the standard liability coverage in your farm and ranch insurance. For instance, you may need additional coverage if you offer agritourism activities, like pumpkin patches, corn mazes, or horseback riding. Always check with your insurance agent to make sure you’re fully protected.

In short, farm and ranch liability coverage is a vital part of your insurance policy. It helps protect your financial wellbeing in an accident or incident for which you’re held responsible. And, given the wide range of activities and potential risks on a farm or ranch, it’s not just a good idea—it’s a necessity!

What Isn’t Covered by Farm Insurance?

As important as it is to understand what your farm insurance does cover, it’s equally important to know what it doesn’t. Like any insurance policy, farm and ranch insurance has its limits and exclusions. And while these may vary from policy to policy, there are a few common things that typically aren’t covered. So, let’s dive in and uncover some of these areas that often fly under the radar.

Fencing not Automatically Included in Farm Insurance

Let’s start with something that can be a big part of any farming operation – fencing. From corralling your livestock to marking your property boundaries, fences play an important role. However, it may surprise you to learn that fencing is often not automatically included in farm insurance policies.

Why is that, you ask? Well, fences are exposed to all sorts of conditions and are often subject to damage, whether from natural wear and tear, weather conditions, or your livestock themselves. Because of this, many insurance policies treat fencing separately from other structures on your property.

If you want your fencing to be insured, you’ll typically need to add it to your policy separately. This may increase your premium, but it could be well worth it considering the cost of replacing or repairing damaged fencing. So, take a good look at your fences and have a chat with your insurance agent about your coverage options.

What Does Farm and Ranch Insurance Cover?
Senior grandparents and granddaughter picking strawberries on the farm

Note on Covered Perils in Farm Insurance Policies

Another critical point to be aware of when it comes to farm insurance is the concept of covered perils. This is insurance speak for the specific events or situations that your policy covers. Farm and ranch insurance typically includes coverage for common perils such as fire, windstorms, lightning, and theft.

But here’s the catch: not all potential risks are covered. For example, damage from floods or earthquakes is typically not included in standard policies. So, if your farm is in an area prone to these natural disasters, you may need to look into additional coverage.

Similarly, standard farm and ranch policies don’t usually cover livestock mortality due to disease or old age. If you have a significant investment in livestock, you might want to consider livestock insurance to provide more comprehensive coverage.

The bottom line is that it’s crucial to understand the limits of your policy’s covered perils. Don’t make assumptions about what is and isn’t covered. If you’re not sure, ask your insurance agent for clarification. It’s always better to know your coverage details upfront, rather than discovering a gap after a loss has occurred.

Understanding what isn’t covered by farm insurance is as important as knowing what is. By considering things like fencing and covered perils, you can ensure you’re getting the most out of your insurance policy. After all, when you’re working hard to keep your farming or ranching operation running smoothly, the last thing you need is an unexpected insurance surprise!

Final Words: Should You Get Farm or Ranch Insurance?

Deciding whether to get farm or ranch insurance is a crucial decision that should be based on an evaluation of your specific needs and risks. If you’re in the farming or ranching industry, chances are you have a significant investment in your home, structures, equipment, and livestock. The potential financial loss from an unforeseen event can be devastating.

Farm and ranch insurance can offer peace of mind that your investments are protected. Even with the exclusions, its broad coverage can be a financial lifesaver in the wake of a disaster.

As with any insurance policy, it’s important to understand exactly what’s covered, what’s not, and what additional coverage options are available. A good insurance agent can walk you through the ins and outs of farm and ranch insurance to help you choose the coverage that best fits your needs and budget.

If your livelihood is tied to the agricultural sector, farm and ranch insurance is not just an option—it’s necessary. Understanding what it covers and doesn’t is the first step towards protecting your farm or ranch and, ultimately, your livelihood.