Below is general information- always check with your local insurance agent to review your policies and specific needs.
Most farms and ranches carry insurance policies. You hope you never have to use insurance, but it is important to understand what your policy covers.
Two common policies your farm or ranch may have:
- Property insurance
- Farm or ranch liability insurance.
Farm and Ranch Property Insurance
This is a common policy that covers items listed on the policy. Items must be scheduled or specifically listed on your policy. If items are scheduled, the policy should cover the items.
Common items that are covered are:
- Machinery
- Buildings and houses
- Panels, wells/solars, etc.
However, these items are often NOT covered unless scheduled:
- Livestock
- Fence
- Pasture or crop forage losses
Livestock and fence can be listed on property insurance; however, they must be scheduled. If fence is listed and damaged, you receive a depreciated value. A depreciated value drops with time, as the item “wears out,” and is not the full replacement cost.
Special Policies
Other policies can be purchased. Separate coverage is available for pasture forage lost to fire. However, the policy needs to be in place two weeks before the fire happens. Currently, coverage of $20/acre costs about $0.25 per acre.
Liability Insurance
To protect your farm or ranch assets during a lawsuit, farm or ranch liability insurance can be purchased. Umbrella policies are often purchased with liability insurance, adding extra coverage.
Bottom Line
Livestock, fence, and forage losses from wildfire are usually not covered, unless specific policies are in place, or items are scheduled on existing policies.
Always check with your insurance agent to review your policies, confirm what is scheduled, identify coverage gaps, and develop an understanding of what is covered and what is not.
Don’t wait for a disaster to hit- review your insurance policies to make sure you are covered.
