What Isn't Covered By Farm Insurance?

Be cautious when purchasing farm insurance. There are a few items that you would think are automatically covered but are most likely not. In particular, there are a few coverage considerations about fencing and fires that homeowners must keep in mind.

Farm Insurance Does Not Automatically Include Fencing

Rarely are fences covered by standard farm insurance policies. This may seem counterintuitive regarding requirements, given that many farms have extensive fencing, but this is precisely why standard farm insurance policies do not cover it. Some farms may be unfenced, whereas others may have miles of fencing. Additionally, there are numerous types of fencing, which may affect its insurance cost. For instance, a quarter mile of woven wire fence costs approximately $2,600, whereas a barbed wire fence costs approximately $1,600.

For the reasons above, insurance companies allow policyholders to choose to cover fencing through a policy extension. For a farm insurance policy to broadly cover fencing, it would be necessary to account for a risk that few policyholders face, which would be reflected in a higher premium.

Numerous individuals opt not to insure their fencing. Only a tornado could destroy a substantial portion or the entirety of a fence. However, electric gates can cost more than $15,000. If you have electric gates, you should evaluate their value and determine if you need to insure them.

Note on Covered Risks in Agricultural Insurance

The only perils covering farm machinery and equipment are listed in your policy. Equipment that is not properly maintained will not be covered, nor are technical malfunctions. Like many other things, farm equipment is becoming increasingly technologically advanced; if you do not purchase a specific extension, it may not be covered.

Policyholders must ensure that their homes and other buildings are covered in a fire. Although farms are typically insured against fires, certain circumstances may trigger an exclusion. For instance, your agent will consider the accessibility of farm structures via road. Some insurers require that the roads leading to buildings covered by the policy be paved or solid gravel.

Regarding water sources, some people believe a pond on the property is sufficient, but if there is no hydrant, fire truck hoses must be able to reach both the pond and any covered structures. A fire truck is likely to deviate from a road or gravel in dry conditions, but in snowy or muddy conditions, it may not. A lack of clear roads leading to your barn or stable would increase your risk of fire damage, resulting in your insurer excluding fire as a covered peril.