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The Most Common Questions About Farm Insurance, Answered

Today’s farms are complex businesses with heavy equipment, technology, vehicles, and intelligent machinery designed to complete the job efficiently. There are very few insurance policies that require as many moving pieces and factors as farm insurance. In Edmonton and surrounding areas that are part of Alberta’s thriving agriculture industry, many farms have a sophisticated system. A single farming business can include livestock, crops, land, property, equipment, machinery, and buildings that all come with the risk of loss and damage.

Naturally, the complexity of farm insurance raises many questions. As farm insurance brokers in South Edmonton and beyond, we have a good understanding of some of the most common inquiries that farm owners have about their insurance policy. We answer these questions below.

1. How Much Does Farm Insurance Cost?

The answer to this question is not a straightforward one as no farm insurance policy is created equally. Insurance providers take many factors into account and all aspects of the farm to build out a policy with the right coverages and limits.

Some of these categories typically include:

  • What type of farm equipment and machinery used and the cost to replace them
  • What type of buildings are on the farm and their contents
  • If there are any livestock on the farm
  • The amount of potential income that can be lost
  • Any additional coverage needed

2. What If I Live On The Farm? Does My Standard Home Insurance Policy Cover Me?

No, your standard home insurance policy will not cover any farming activities. If you have a hobby farm and you’re not looking to make money from farming activities, speak with your insurance broker about your home insurance policy and what it may cover.

3. What Is Included In A Farm Insurance Policy?

The types of coverages included in a farm insurance policy vary widely and depend on the type of farm you’re operating. Your insurance broker will discuss with you the top coverages you need and will also help you save money on coverage that you don’t need.

For example, if you have a vegetable farm, you don’t need livestock protection. If you run a dairy farm, you don’t need crop protection. There are some basic coverages that most farmers need, including liability coverage, natural disaster protection, and insurance for equipment and tools.

4. How Do I Get The Cheapest Rate?

Your best bet is to work with an insurance broker. While there are insurance providers out there that specialize only in farm insurance, it’s not a guarantee that you will get the best rates and coverages. This is because insurance agents working for one insurance company can only offer you the packages from the company they work for.

Insurance brokers have a network of different providers and can negotiate the terms on your behalf. They are trained and equipped with the knowledge to get the coverage you need at the best rate. Remember, a cheaper rate is not always the most cost-effective. The most important thing is to make sure you have a farm insurance policy that addresses all of the risks of your particular business with adequate coverage.

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