When it comes to insuring farms and related businesses, there are several types of coverage that are often overlooked. Here are three that are important areas to consider – talk with your agent to make sure you have the coverage you need!
1. Expanded Replacement Cost Endorsement
This endorsement, or addition to your policy, requires that the dwelling be insured for 100% of the cost to replace it, known as the replacement cost value. This form provides up to an additional 25% coverage for the particular dwelling listed under coverage “A”. Note – this coverage is not available for irreplaceable or unique construction.
2. Expanded Property Coverage Endorsement
This endorsement offers several additional coverages, including “Farm Earning & Extra Expense”. Consider this – what happens if equipment on your farm breaks down, resulting in lost earnings and or extra expenses just to keep the farm running? The Expanded Property Coverage Endorsement, combined with an Equipment Breakdown policy, provides coverage in the event of a loss due to equipment breakdown.
3. Suffocation of Poultry and Livestock
This covers the poultry or livestock listed on Coverage “E” in your policy for suffocation as a result of breakdown of or interruption of power to equipment in the building these animals are kept in. This is important, because the Equipment Breakdown policy excludes animals and therefore won’t cover suffocation. Make sure your animals are properly covered by talking to your agent about this coverage.
It’s our goal to make sure you are aware of all the options you have to properly protect yourself from the risk of loss. We understand that the various policies and how they apply to your operation can be daunting, so we highly recommend you work closely with an independent insurance agent.
What coverage questions do you have? Post a comment below and we’ll ask our underwriters to answer your question.
Jessica Workinger gathered information from this article from the farm and agribusiness underwriters at Westfield. She is a student at Ashland University and is a summer intern in the Agribusiness division at Westfield.