Why It Is in Your Best Interest to Buy Farm Insurance for Your Hobby Farm

Insurance Blog

Many people assume that farmers have huge farms with thousands of acres of land or dozens of animals. While there are many large commercial farms, smaller hobby farms are very common as well. If you have a farm on the land that you own, no matter how big or small, you can consider it a hobby farm if it does not supply your main source of income. Keeping a hobby farm running smoothly is not inexpensive—if you're going to invest your hard-earned money in your hobby farm, it is in your best interest to protect yourself financially. Thus, it is important to purchase a farm insurance policy to cover your hobby farm. Some of the top reasons that you need farm insurance for a hobby farm include:

You Can't Count on Your Homeowners Insurance

It is not uncommon for people to mistakenly believe that their hobby farm will be covered by their homeowners insurance if their house and the farm are on the same land. In reality, very few homeowners insurance policies provide coverage for any type of farming activity. Thus, if you have farming equipment that you use regularly for your hobby farm, you can't count on your homeowners insurance policy providing coverage in the event that the equipment is damaged or stolen. 

Liability Protection

Some people keep animals, such as sheep, goats, or chickens on their hobby farm, while others may focus solely on growing crops. No matter how you use your hobby farm, it is important to have a farm insurance policy that provides liability protection. Liability protection will provide coverage in the event that someone is hurt while on your hobby farm. If you sell products from your farm, such as fresh produce, fruit, eggs, honey, or anything else made with products from your farm, liability protection will provide coverage if someone happens to get sick after consuming a product.

Protect Income

By definition, a hobby farm does not provide a person their sole income. However, it is not uncommon for people who have hobby farms to supplement their incomes by selling their products at farmers' markets or directly to consumers. If you rely on your hobby farm to provide a portion of your income, it can be very difficult if something goes wrong and you don't have products to sell. For example, if you sell produce at a farmers market but your crops are destroyed by a hail storm, you will be out of money. A farm insurance policy will protect you from loss of income. 

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29 July 2020

Insurance: Terms, Tips, and More

When you purchase any type of insurance, there are a number of terms you need to understand. The deductible, for example, is the amount of money you need to pay before the insurance starts covering the damage. The insurance term is the time during which the policy applies. You'll also need to understand the word "premium", which is the amount you pay monthly for your policy. As you can see, there is a lot to buying and understanding insurance. We hope that the information on this website helps you navigate this task and leaves you better informed as a customer.