Frequently Asked Questions
About NY Farm Insurance
Q: Who needs Farm Insurance?
A: If you own farm buildings, farm machinery, any kind of livestock, and land that can be tilled, it’s important that you carry Farm Insurance to protect your investment.
Q: Is there such a thing as a standard Farm Insurance policy?
A: There is no one standard predetermined Farm Insurance policy. Each farm is unique and requires a policy that is custom built for the needs of the farmer.
Q: What are the various types of Farm Insurance offered?
A: Farm Insurance covers:
Property Coverage – Property coverage protects your house and any outbuildings that are located on your property. It also protects your personal property which might include:
– Your home and its contents
– Any tenant dwellings
– Farm equipment and tools
– Harvested grain, silage, feed, pesticides and fertilizers
– Farm structures such as barns, confinement buildings, dairy parlors, silos, portable buildings, pens
– Detached garages, sheds, and other non-far buildings on your property
Farm Liability Coverage – Farm liability covers expenses you are legally liable to pay due to bodily injury or property damage. Liability unique to farms include livestock getting in the road and causing an accident, chemical overspray, lawsuits due to polluting a well or waterway from pesticides or manure, and many more.
Additional coverage options include:
– Business auto
– Umbrella liability
– Disruption of farm income
– Peak season endorsement
– Temperature-sensitive farm personal property
Specialized Farm Insurance Endorsements include:
– Fruit and berries
– Vineyards and wineries
Q: Will one policy cover my home and farm?
A: Yes. One policy can be written to cover your home, personal contents, farm buildings, farm contents, equipment, and farm liability.
Q: What animals can I have insured?
A: Your Farm Insurance coverage can cover many types of animals including cattle, horses, sheep and lambs, goats, donkeys and mules, chickens, ducks, peacocks, llamas, alpacas, and more. If you have an animal not listed here, ask your insurance agent if you can include that animal on your Farm Insurance policy.
Q: Are 'acts of God' covered?
A: Damage caused by natural catastrophes such as a fire, hail storms, lightning strikes, or high winds are sometimes referred to as ‘acts of God’. The insurance industry refers to these events as ‘perils’ and they are covered by insurance coverage known as ‘named perils and also covers losses caused by theft, explosion, transportation, and vandalism to name a few.
A better choice for your farm insurance is called ‘broad form’ (or ‘all-risk’) coverage, which provides coverage for all losses unless they are specifically excluded. It is important to discuss all aspects of your farm with your broker including what may or may not be covered.
Q: Do I need a Farm Insurance policy if I just have a home on my farmland?
A: Certain Homeowners Insurance carriers have a maximum acreage limit for homeowners’ policies. When this is the case, a Farm Insurance policy may need to be put in place.
Q: If I have acreage in multiple locations, can they be covered under one Farm Insurance policy?
A: Yes. You can insure each location as well as all the structures at each location and have them all insured under one Farm Insurance policy.
Q: Does Farm Insurance over pollution incidents?
A: In some cases, yes, but not all pollution incidents are covered under a vehicle and farm insurance policy. This could put farmers at risk for having to pay for damages out-of-pocket, whether you own a dairy, grain, or vegetable farm. For peace of mind, a Pollution Insurance policy is recommended to fill in the gaps that a Farm Insurance policy doesn’t cover.
Q: What is Crop Insurance?
A: Crop Insurance is federally supported and regulated, and is sold and serviced by private-sector crop insurance companies and insurance agents. Crop insurance protects farms against the loss of their crops due to natural disasters, or the loss of revenue due to declines in the prices of agricultural commodities. There are two major types of crop insurance: multiple peril crop insurance (MPCI) and crop-hail insurance.
Q: If farming is just a hobby, does my Homeowners Insurance protect my farming activities?
A: If you treat your large garden or small farm as a hobby and have no intention of making money, it’s possible that your standard Homeowners Insurance policy will cover some of these farming activities. Keep in mind that Homeowners Insurance policies exclude things like farm equipment and farm outbuildings. Make sure to speak with your insurance agent to find out what coverage your homeowners policy provides.
Q: What items should I have ready to thoroughly discuss my Farm Insurance policy?
A: We recommend making a list of your farm locations, farm equipment with corresponding values, dwellings and outbuildings, and operations information (revenue, crops, animals, etc.).
Q: How are prices determined for Farm Insurance?
A: Farm insurance can cost as little as $1,500 per year, while a policy for a large production farm could cost much more. These four factors will have the greatest impact on the cost of your farm insurance premium:
Your place of residence
Farm structures, livestock, and equipment limits
Q: Does a Farm Insurance Liability policy cover services that I provide to others?
A: If your farm provides a service for others, you will likely need extra liability coverage for those activities and services. A few examples idea of additional coverages you may need to add to your policy include:
Selling in a farmer’s market
Boarding horses or dogs
And many more