Your farm is not only your business, but your life
We want to help you protect it with the right amount of coverage
You’re a farmer. It’s probably in your blood. No matter what scale your farm is—small, medium, or large—we’re here to help protect it.
We get how important your farm is to you. Not only is it your business, but it’s personal for you and your family. At Preferred Insurance, we’re going to take time to learn about you and get every detail about your farm right so we can give you the best quote for your specific needs.
Nowadays, farms are getting much, much larger. Most policies are only written through a small number of insurance companies, many of which we have access too, including Westfield, Travelers, and Everett Cash. While farms may be getting more complex because of size, we can handle complexity.
Our goal is making sure you’re properly covered in case of a calamity
One of the main issues we see is farmers who come to us with too-little coverage. It’s amazing just how many farms have buildings that are insured for far too little to make a real difference if something were to happen. We’re talking hundreds of thousands of dollars underinsured.
Buildings and Actual Cash Value Policies
In the case of farms, most buildings are insured for their actual cash value, not the replacement value. And, in the case of a partial loss, that cash value is going to be depreciated based on how old the roof is. Or, in other words, if the cash value for the building is $48,000 but the roof is 15 years old, half its life is gone. You’ll get a check for the depreciated value of $24,000.
In the case of a loss, the person would be very disappointed and you can see how much an issue like this could pose during a time when you are in need.
Care, Custody, and Control Coverage Policies
Let’s say your farm is contracted through a bigger farm. Because they technically own the animals, you would not be liable for those animals in the case they were harmed during a storm or other disaster outside your control.
However, in certain cases you would be responsible. For example, if the power goes out and you don’t check to make sure the generator kicks on and half the hogs die, you would be liable for that accident.
To protect yourself in such a case, there is an add-on policy called Care Custody Control which does cover animals for you if you were deemed liable. Most people don’t have this policy and don’t think they need it, but could end up meaning hundreds of thousands of dollars in cost if such a scenario were to occur.
Loss of use
Another way many farmers are uninsured is in the case of loss of use. Loss of use occurs during times where you can’t use equipment or building—for example if there is fire in your building. You are now out of commission and cannot have animals in that barn for three months. But, you still have payments due on the building every month. A Loss of Use Policy can get you coverage on this kind of loss.
Farm equipment and expansion of the farm
Most farmers start a policy with what they have and then never update it. This can translate into millions of dollars of equipment that is underinsured, simply because the equipment is not revisited and updated onto the current policy. Most of the time, the farmer doesn’t realize this is the case and thinks they are insured properly.
These are just some of the ways we can help protect your farm
Our agents can help walk you step-by-step through the insurance process, making sure you a have plan in place and the right protection you need. If you have concerns that your farm isn’t protected enough, please come and talk to us. We want to make a difference in your business and help your family during unexpected times of need.