How to Insure Your Hobby Farm Equipment and Structures

Hobby farms can be an enjoyable and rewarding investment of your time and resources. Regardless of what you plan to grow or raise, even a small operation may require a significant financial commitment. Buildings, tools, equipment, seeds, livestock and labor can all be quite expensive, and given the many incidents and perils that could befall your hobby farm, appropriate insurance should be considered essential.

What Is Hobby Farm Insurance?

You should first understand that hobby farm insurance may not consist of a single policy available from all insurance carriers. While some insurers may offer packages tailored toward small farms’ needs, you might also need to work with a broker to secure several types of policies and build your own hobby farm insurance portfolio.

What Types of Insurance Do I Need?

Hobby farms can come in many shapes and sizes, with location, crops and other operational details all playing roles in determining your coverage needs. In many cases, you may want to prioritize the following:

• Farm structures insurance—This can help pay for losses involving buildings used for your hobby farm, such as barns and sheds. Even if you base your farm out of your own home, you may need this coverage, as standard homeowners insurance could exclude such losses or have insufficient limits.
• Tools and equipment insurance—This coverage can help pay to repair or replace your farming equipment. Covered perils may include fires, theft, vandalism and certain types of water damage.
• Flood insurance—Floods are typically excluded from many standard property insurance policies, so you may need this specialized form of coverage to address such losses.
• Earthquake insurance—Like flood insurance, this type of coverage is often separate and excluded from other policies.
• Inland marine insurance—If you plan to transport your goods or property elsewhere, such as for a trade show or farmers market, you may need this type of coverage to maintain financial security.

In addition to the aforementioned types of insurance covering tangible hobby farm assets, you may also need other policies. For example, general liability insurance can help pay for third-party losses for which you’re responsible, such as if you sell contaminated crops.

We’re Here to Help

At Don Ramatici Insurance, we can help you understand hobby farm coverage options and secure appropriate policies. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.