Farm Insurance – the basics
Farm Insurance – Hobby vs. Commercial
When considering farm insurance there are three criteria which help decide if your farm is considered a Hobby or Commercial Farm. An insurance broker needs to know the following details in order to provide the right insurance:
- The size, or acreage, of the land
- How much income, if any, the farm generates
- How much livestock is on the farm
What makes a Hobby Farm a Hobby Farm?
Think small – in farm insurance terms, a hobby farm must:
- be 10 working acres or less in size,
- generate up to $8,000 per annum only,
- have less than six animals or livestock, with the exception of saddle animals.
An insurance broker will ask plenty of questions in order to provide the correct recommendations to insure a commercial farm. The following areas are evaluated:
- farm buildings
- land rental and properties
If your home is located on the farm property a separate Homeowners policy is required.
Farm Policy Requirements
Liability Insurance, Home Insurance, and Business Interruption Insurance are three important coverages to have in place for commercial farms. A separate homeowners policy is required for personal dwellings and if there are farm vehicles on the property a separate auto insurance policy is required.
Farm insurance requires a more personal level of service and working with an experienced insurance broker will give peace of mind and reassurance that the right coverages are in place.