Understanding Insurance Options for Farm Outbuildings
An important part of your farm or ranch policy is the protection it offers for damage to farm or ranch buildings and structures. These buildings must be listed on your policy to be covered.
In addition to barns, stables, pens, confinement buildings and sheds, other outbuildings include cold storage structures, rice dryers, nut hullers, packing houses, prune dehydrators and potato storage sheds, for example.
Coverage for farm buildings includes:
Water pumps, motors and other outdoor equipment used for the operation of the building
Furniture, fixtures, machinery and equipment – pertaining to the use of the building – located in, on or within 100 feet of the building
Also talk to your agent about:
Insuring your farm buildings for replacement cost or actual cash value
The Causes of Loss (Broad, Basic or Special) for which you want to insure
How much deductible to carry. A higher deductible may lower your premium, but you would have to pay more in the event of a loss.
The current values of your farm buildings
Under certain conditions, AgriChoice® may also provide coverage for collapsed farm buildings.
Extended coverage for new farm buildings
If you add a new barn, shelter or other confinement building, AgriChoice extends your coverage of up to $100,000 for 60 days (beginning when the building materials are delivered) or until your next renewal date. When your policy is about to renew, discuss the values of any new structures with your agent to be sure you’re properly insured.
Don’t forget the fixtures
The AgriChoice policy provides coverage for equipment breakdown and mechanical failure of fixtures or systems built into farm buildings. Be sure your agent is aware of the values of all fixtures, systems and equipment associated with your barns or other structures.