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Range2W
Visitor

Insurance for the farm.

I've noticed over the last few years my insurance for the farm has gone up quite a bit. Others with this same company have commented on it also. So, I'm starting the daunting task of looking around for farm insurance which includes liability, umbrella, trucks, auto's, the whole shootin match. Any suggestions? Who is the best company out there? Not just cheepest, although I'm looking to lower premiums, but who is good to work with?

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3 Replies
Nebrfarmr
Veteran Advisor

Re: Insurance for the farm.

I like our local Farm Bureau agent.  FB will bundle your auto, property, and even health insurance into one premium.  I don't know if they necessarily are the cheapest, but they are one of the few that will let you cover things like grain bins, and irrigation equipment at replacement cost, even if it is older.  Most other companies I know of, once your stuff gets over 10 or 20 years old, they will do a pro-rated, or 'value only' policy.  Doesn't do you a lot of good when a bin you put up for $20,000 costs $50,000 to replace.  FB will let you buy up to replacement value, if you want to.  Of course, a lot of why I like FB is because of our local agent.  They can make or break your coverage.

 

Lastly, if you DO have your bins, buildings, etc already covered for replacement value, your premiums will go up simply because the cost of replacing the stuff has gone up.  For example, a center pivot that was $35,000 7 years ago was $50,000 4 years ago, and $70,000 today.  The premiums go up just because the value of what you are covering has risen.

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Kay/NC
Honored Advisor

Re: Insurance for the farm.

Good point about the need to secure " replacement cost" coverage. "Actual cash value" coverage is not thtal kuch cheaper, but is not worth the time it takes to call the company if you have a loss...you will not get paid but a depreciated value, less the deductible.

We use Farm Bureau, because not just anyone will cover a big hog farm here in NC. Keep loss and liability farm owners policy, general liability umbrella, vehicles and equipment, and health insurance, all with them. Life policies are elsewhere.

Another factor that makes premiums jump is losses in your area...even if you don't have claims, you will help pay for everyone else's losses that the company covers. I am scared to see what ours will be after the tornados last spring, hurricane just past, and tornado activity off of TS Lee today.

Not complaining about not collecting...I hope never to need a single cent of what, we pay in....
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Kay/NC
Honored Advisor

Re: Insurance for the farm.

Forgot to say, they carry our comp, too.
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