Coverage is typically provided for your farm equipment, including tractors, combines, hay rakes, planters and other field equipment.
Farm Property
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Farm Products
Read MoreThis includes things such as, grain, seed, fertilizer, hay, milk, produce and tobacco.
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Structures
Read MoreYour farm policy should cover loss or damage to buildings used in your farming operation.
Points to Ponder
Covered Causes of Loss
It is important to understand which causes of loss (“perils”) your policy covers. There are three tiers of coverage: Basic, Broad or Special. Basic is the least inclusive and Special is the most inclusive.
Basic coverage includes losses such as fire, wind or theft.
Broad coverage includes basic as well as losses such as collapse, weight of ice and snow or loss of livestock due to electrocution, flood or earthquake.
Special coverage includes Basic, Broad and all other losses that are not specifically excluded.
Coinsurance
You agree to insure your property for a minimum amount. If it is insured for a lower amount, the company pays only a percentage of the loss, determined by dividing the limit of insurance purchased by the amount that should have been purchased in order to comply with the minimum. For example: You insure your 5,400 square foot shop for $30,000 with a real value of $60,000. Your claim settlement for a total loss would be $15,000 or 50%.