Just like other types of insurance policies, there are different types of farm insurance policies out there. As a farm owner, you need to not only protect your livelihood, but your personal property and homestead if you live on the property as well. Finding the right insurance is not easy, but by understanding the different types of coverage available, you may be able to better determine what you need.
Most Common Types of Coverage for Farms
There are a variety of policies, but these are the most common types of coverage required by farmers.
- Dwelling Coverage – This protects your home and belongings from fire, windstorms, lightning, hail and accidental losses (such as theft).
- Farm Liability Coverage – Your farm may have been passed down for generations, so you do not want to risk losing that. Farm liability coverage protects you from the unexpected, including medical expenses, property damage and accidental bodily injury for when you are at fault.
- Personal Property Coverage – This add-on type of policy can protect the farm equipment you have, including machinery, animals and even feed / fodder.
- Outbuilding Coverage – Most farms have multiple outbuildings, which require their own level of protection. This can include barns and sheds.
- Grain Farm – If you have a grain farm, this is your main crop. Poor weather or even fire can damage your grain, so you need to have that protected.
Understanding the different types of Alabama farm insurance is challenging but essential. To find the right type of coverage for your farm given all of the potential losses and risks, you need an insurance broker’s help. The team at The Nowell Agency can help identify your risks and discuss your coverage options so that your farm is fully protected. We can also provide guidance and tips on certification and compliance requirements. For example, in order to receive federal crop insurance premium subsidies, Alabama farmers that grow specialty crops are required to have on USDA file their Highly Erodible Land Conservation and Wetland Conservation Certification form, commonly called form AD-1026 by June 1, 2015.