Farmowners

Farm Package Policy

Farm policies are designed to accommodate business exposures while retaining personal coverages typically found in a Homeowners Insurance policy. There are several factors that pertain to Equine properties that will dictate the need for a farm policy.

The first is an equine business is operated on the property. We actually look to a typical Homeowners policy for the definition of “business” because if the threshold (and it is a low one) is met the Liability coverage on a Homeowners policy will not cover “business” activities. There are endorsements that can be used to mitigate the problem but most insurance companies are just not comfortable insuring equine exposures so they typically will not allow these endorsements to be added to a Homeowners policy.

Second, if you own over 4 horses (even just for personal use and can be as low as 2 horses) many insurance companies will not insure your home. Although a Farm policy can be used please see our Equi-Home/Estate page for more information.

Third reason is the deed to your home is held by a corporate entity. Many Homeowners insurance companies cannot write a home that is held in a corporate entity. There are some exceptions to this rule for sure but you will need an agent to help you with that process because we know who will do it and who will not. Also see our Equi-Home/Estate page for another potential option.

Lastly, a farm policy may be needed if the exposures do not meet the guidelines of a company that offers a Equi-Home/Estate policy. This may occur because of underwriting issues or just simply because the product is not available in your state or region.

What Can I Cover?

A Farm policy can cover many items to include your home, barns, stables, riding arenas (even coverall style) sheds and any other farm buildings. It can also cover your household furnishings and farm equipment. Machinery can be scheduled as well. Liability coverages are provided for the named insured , resident family members and business exposures. Care, Custody, and Control coverage can be added as an option for your negligent acts that injure a non owned horse. Loss of Income from your farm operation can be added as well to protect your income stream in the event of a covered property loss.

Activities, Activities, Activities

Farm liability is dictated by the amount and type of activities disclosed on an insurance application. Most equine activities can be accommodated on a Farm policy. Liability coverage applies both on and off premise. Problems arise when activities are being conducted that were either not disclosed or the activities (trail, pony, sleigh and wagon rides for example) fall outside typical farm underwriting guidelines. These situations can put a policyholder in the NO COVERAGE ZONE. Avoid these problems by understanding how the coverage works and by keeping insurance providers informed.