Pennsylvania is a very rural state, with many of our residents living on and working family farms. There is a great deal of diversity among Pennsylvania farmers – some own their property and others rent, some raise crops and others raise livestock. While farmers share a lot of the same insurance needs as homeowners, there are other factors that should be considered when looking for farm insurance. Like homeowners and renters policies, coverage is usually either replacement cost or actual cash value. Replacement cost coverage will pay the full amount to repair or replace covered property or structures without regard to depreciation. The premiums for this coverage are usually higher, and replacement cost should be indicated in the policy. Actual cash value coverage, while less expensive, will reimburse you for your losses after accounting for the age, condition, and value of the property or structure.
Pennsylvania Farm Property Insurance can generally be separated into 4 different categories that you should discuss with your insurance agent:
Home and Contents
Insurance for Personal Farm Property
Insurance for Farm Structures
Liability Protection
Home and Contents:
This portion of your farm policy is very similar to a regular homeowner’s insurance policy. It covers your home, your personal household property, and other buildings or outdoor equipment such as garages, storage sheds, satellite dishes, and landscaping. If you rent your farm, then this portion of your farm insurance policy would be similar to renter’s insurance, providing coverage for your personal property.
Personal Farm Property:
Personal farm property coverage would include farm equipment and machinery, supplies, livestock, farm tools, and farm products such as grain, animal feed, seed, and fertilizer.
Farm Structures:
Your farm structures insurance covers you in case of loss or damage to the many different types of structures that you may have on your farm. This would include barns and outbuildings, confinement facilities, dairy parlors, silos, portable buildings, pens, chutes and corral fencing, building materials for farm buildings, and fixed irrigation equipment.
Liability Protection:
This is the most important part of your pennsylvania farm insurance policy. Farming is a very hazardous occupation; accidents can and do happen. No matter how careful you are, accidents can happen to visitors, workers, or others who may be on your farm property. Personal and farm liability insurance is essential to protect your farm and your business. It provides payments for your legal liability up to the limits of your policy, in the event that someone is injured or someone’s property is damaged, while on your farm. Liability insurance will also pay the medical bills for people that have been accidentally injured while on your farm, up to the limits of your policy.
Additional liability coverage can be obtained by purchasing umbrella coverage. Like an umbrella, this coverage arches over your existing pennsylvania auto, homeowner, and farm policies, providing an additional layer of liability protection.
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