Question 1

What Does Standard Farm Personal Property Insurance Cover?

Accepted Answer

Standard farm personal property insurance is designed to provide protection for movable farm assets against covered perils. One of the things to know about farm insurance is that it can cover these assets on and off the farm premises. Farm personal property is usually covered on a scheduled or unscheduled basis.

Key Categories of Farm Personal Property Coverage

Standard farm personal property insurance often provides coverage for these key areas:

Farm Machinery & Equipment, which often includes:
- Tractors
- Combines
- Tools
- Irrigation systems
- Computers
- Other office equipment
Livestock, which usually provides protection specifically against perils like:
- Electrocution
- Lightning
- Fire
- Theft
- Vandalism
Farm Supplies & Products, which usually includes:
- Harvested crops
- Grain
- Silage
- Seed
- Fertilizer
- Hay
- Seed

Scheduled and Unscheduled Personal Property

Farm personal property coverage is usually on a scheduled or an unscheduled basis.

Scheduled Farm Personal Property

Scheduled personal property is used to tailor coverage for specific needs or items that do not qualify for unscheduled farm personal property. These items are listed individually and separately on your policy. This allows you to tailor coverage to these items and assign a specific amount of insurance to each to ensure you have adequate coverage and limits for them on your policy.

Unscheduled Farm Personal Property

Unscheduled personal property provides general blanket coverage for items up to your selected blanket coverage limit. In the case of farm personal property, this often includes things like smaller machinery or tools. It is also often referred to as “blanket coverage.” There are some types of coverage that are not eligible for unscheduled coverage, such as Irrigation Equipment, ATVs/UTVs, etc. Some carriers may not allow certain items, like Combines, Forage Harvesters, Cotton Pickers, etc., to be insured under unscheduled farm personal property.

Covered Perils on a Standard Farm Personal Property Policy

Covered perils on a standard farm personal property policy usually include:

Fire
Smoke
Explosion
Lightning
Hail
Windstorm
Sinkhole collapse
Volcanic action
Vehicles
Aircraft
Collision
Vandalism
Theft
Riot or civil unrest

Question 2

What Does Standard Farm Personal Property Insurance Not Cover?

Accepted Answer

Although farm personal property insurance is often bundled with other coverages, like farm liability, farm structures, and homeowners insurance, it is a distinct coverage. As with all insurance, available coverage is about risk management. Emerging risks and insurance trends can affect what is and is not covered on standard policies. This is why making sure you talk to your insurance agent about the coverage you have and obtaining any endorsements you need is so important. Provided you have the right endorsements on your policy, you can turn coverage exclusions into covered losses. Depending on the nature of the risk and the coverage needed, there could be plenty of coverage options, limited coverage options available, or options that are cost-prohibitive. Your insurance agent will be able to walk you through the current state of insurance and help you evaluate the available options for the coverage you need.

Common Exclusions on a Standard Farm Personal Property Policy

Specific coverage exclusions will vary by location, carrier, market, etc., but they are explicitly stated on insurance policies in most cases. This list is not exhaustive because coverage exclusions can vary, and there are endorsements available to add coverage for some of them. In general, a standard farm personal property insurance policy usually does NOT cover the following perils:

Growing crops
Household goods
Specialized equipment
Routine wear and tear
Sewer backups
Flooding
Earthquakes
Pollution
Disease/sickness
Pest infestation
Non-owned livestock in your care
Inventory used for retail sales
Negligence
Intentional acts
Government-ordered seizure/destruction

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