Understanding Farm Insurance for First Time Sustainable Homestead Businesses
When you first started your sustainable homestead, you likely had plans of sustaining your family. As your farm expanded, you may have decided to open a small business. Opening a small and sustainable homestead farm business also means considering farm insurance. Here are a few things you need to understand about farm insurance as a first-time sustainable homestead business.
Personal Coverage
The first thing to understand about farm insurance as a first-time farm insurance buyer is that it is a hybrid coverage. This means that you will receive personal coverage and commercial coverage. The personal coverage covers your farmland as well as the machinery and any other personal items that go into your farm. This may also include your home, and in some cases may include income as well. The personal coverage can also cover the land, your home, stables for animals, fencing and areas that may be damaged due to natural disasters.
Commercial Coverage
The commercial coverage of a farm insurance plan covers the liability of the products that you distribute from your homestead farm business. For example, if you have a small dairy and you sell milk and other dairy products from a homestead-placed business, the insurance would cover any liability from those products. If one of those products sours or makes someone sick, you are covered under the farm insurance liability. This can also go for bee farms, poultry farms and even fish farms.
Natural Disasters
Natural disasters are covered under some farm insurance policies. The natural disasters may fall under the commercial side or the personal side. In some cases, insurance for natural disasters is covered under both. Natural disasters include hurricanes, floods, tornadoes, earthquakes and other natural disasters that are specific to your location. In some locations, you may have to add certain coverages such as flood coverage depending on the insurance company and the policies they have available.
As a new homestead business, you may want to consider a consultation appointment with your insurance provider. They can discuss the various types of farm insurance they have available. They can also discuss what the policies cover and which options may be best for your business. They can also go over the upgrades you may want to make over time and answer any other questions you have regarding the policies. For more information, contact a company that provides farm insurance. They can help you decide a plan based on your farm's needs.