Some Common Misconceptions About Farm Insurance Coverages

Good afternoon everyone!

Today, we want to share an article with you that does a good job explaining a little bit about some common misconceptions about farm insurance coverages. This article is taken from a blog by NC Horse Lawyer written back in August of this year.

Once you have found a reputable agent experienced with equine insurance, tell them everything you plan to do at your farm (e.g., pasture horses, grow hay, breed horses, board horses, teach lessons, etc.). And do it in an email if possible so that it is in writing so there will be no confusion about what you remembered to tell the agent. Also, you both will have that email to reference in the future if you want to be sure you have addressed everything which needs to be covered. If there are particular concerns about which you are worried, ask questions of your agent. The agent would much rather you ask questions in the beginning when placing the insurance coverage than find out the hard way when you have a claim that something is not a covered risk. Take notes on the agent’s answers to your questions or hang on to the email if the agent responds via email.

"This month’s article will focus on misconceptions which are common on the property insurance side of things. Next month we will address misconceptions about other types of equine-related coverages (e.g., instructor coverage, mortality coverage and others).
What kinds of coverage might you be surprised to know you do NOT have with a typical farmowner’s or homeowner’s policy? Well, that is hard to say because folks have differing ideas of what they think is covered under these policies. Generally speaking, though, here a few examples of things which some people believe are covered under their policies but may not be:

1. Fencing – if your fencing around your pastures is damaged, your basic farmowners/homeowners’ policies do not pay to repair that damage. You can purchase separate fence insurance, but it is not something which is automatically covered by the common farmowners/homeowners’ policy.

2. Certain Downed Trees – If a storm blows a tree down on your farm, unless it lands on a covered structure, none of the cost to cut it up and haul it away is covered by your basic farmowners/homeowners’ insurance policy. Even if it is partially on a covered structure, the insurance company may only be required to remove that portion of the tree (limb, etc) which is actually touching the structure.

3. Barns and other Outbuildings Not Scheduled – Be sure to schedule all the structures on your property, from the barn to the run in out in the pasture to the tool shed by the pond. If a structure is not specifically scheduled (listed) on your policy so that it is clear it is expressly covered, you run the risk of it not being covered, so be sure to tell your agent about all your outbuildings!
Hopefully this information has been useful and will help us remember some of the things which are and are not covered by a standard farmowners/homeowners insurance policy. We can also strive to: (a) remember to find a knowledgeable agent when buying any insurance, especially equine-related insurance; (b) advise your agent in writing of all the structures on your property and all the activities you plan to pursue (or allow other to pursue) on your property; (c) ask any questions about coverage before buying the insurance; (d) confirm you understand the answers from your agent; and (e) request the agent respond via email with the answers so you have a written account of what you told them and what they told you. These simple steps will serve to make everyone’s lives easier rather than trying to recollect conversations from months ago during a claims situation.

Insurance exists for virtually any risk you would like covered, you just have to ask. Certain custom coverages may be very expensive and cost-prohibitive, but creative agents can find almost any coverage you would like to have given a few days. So think about your biggest concerns on your farm and/or about your horse and talk with your agent to be sure you are as covered as you can comfortably afford to be!"

This information was shared from this link.