Farm Insurance - Your protection against farm encroachers

Few of us have sufficient personal resources to cover these types of loss. Insurance provides a means by which we can transfer this risk of loss to an insurance company that does have the financial resources to cover the costs. In addition, insurance policies can provide you with protection if someone is injured or hurt while on your property or if someone has their property damaged due to something you did or failed to do. The same applies if a person is injured or their property is damaged by something you own or by someone that works for you. You may also be able to purchase insurance that will provide you with protection if someone becomes ill or hurt after eating or using a product they receive or purchase from you (such as fruits, vegetables, pies or jams). Insurance policies may also protect you by providing you with an attorney to represent you at no charge if you are sued by someone making a claim that might be covered by your policy.

The following are some of the standard coverages available under a farm policy:

• Property damage coverage protects your farmhouse and outbuildings or household belongings if they are damaged or destroyed by certain causes of loss. Some examples are fire, lightening, hail or tornado.
• Liability coverage will pay if you unintentionally cause another person to be injured or another person's property to be damaged or destroyed.

Medical payments coverage will pay up to a specified amount for medical expenses incurred by persons injured in an accident on your property and, in certain situations, away from your farm regardless of whether you were at fault for that person's injury.

This coverage does not apply to you or a member of your household.

• Additional living expenses coverage will pay for the additional expenses you incur when you can not live in your dwelling because of damage or loss that is covered by your policy. For example, if you are required to move into a motel or apartment while your home is being repaired, your insurance company will pay the cost of this temporary housing. In addition to these basic coverages, many companies offer a variety of additional coverages for an additional cost. These are generally referred to as endorsements to your policy. Endorsements may be purchased to increase or expand some of the basic coverages (i.e. changing from actual cash value coverage to replacement cost coverage); to provide coverage for specific types of losses (i.e. water that backs up from sewer and drains); or to cover items that are excluded by your policy (i.e. particular animals, outbuildings, farm equipment, etc). Many of the items that are typically covered under a homeowners policy (i.e. fences, outbuildings, swimming pools, etc.) will not be covered under your farm policy, unless you specifically purchase an endorsement that covers these items.