Posted on: 1 October 2017
Making the decision to invest in a farm can be a great way to generate income. In order to ensure that your investment is protected, you will need to obtain an insurance policy. Insuring a farm can differ from insuring a traditional business.
Here are three things that you need to consider in order to ensure that you get the right farm insurance policy to protect your new investment:
1. Consider how much coverage you will need.
It's important that you carefully consider your coverage needs before investing in farm insurance. You will want to take the time to calculate the potential earnings you will generate when harvesting your crop, as well as the value of the land itself and any equipment that you will be using to cultivate your new farm property.
Having adequate coverage will protect you from financial disaster in the event that your crop is lost and you are unable to generate income during harvest season.
2. Consider the ways in which your farm will be used.
In an effort to supplement the amount of money generated through produce growth, many farmers open their property up to the public. Agricultural entertainment options like pumpkin patches, markets, or corn mazes can bring in additional income, but these activities also come with unique risks.
Before you insure your new farm, you need to consider the ways in which you will use your new property. If you plan to offer agricultural entertainment options, you will need to secure an insurance policy that protects the public as well as yourself.
3. Consider exclusions.
Many insurance companies list exclusions to coverage in farm insurance policies. It's important that you take the time to identify what these exclusions are before signing an insurance policy for your new farm.
Finding the insurance company willing to offer the fewest number of exclusions ensures that you will enjoy the maximum amount of protection when it comes to insuring your farm. Exclusions can increase your financial risk, so eliminating exclusions will help you protect your new investment in the future.
Being able to properly insure your farm is critical when it comes to the success of your new investment. Be sure that you take your coverage level, intended uses, and exclusions into consideration as you shop for an insurance policy to protect you from financial harm as you invest in a new farm in the future.Share