Will Farm & Ranch Insurance Cover Grain Ruined in a Silo?

Farms come in all shapes and sizes, which means no single farm and ranch insurance policy can give you all the protection you need to feel like your business, family, and workers are adequately covered.

Getting farm insurance is like bundling customized home and business policies to give yourself more coverage than you could get with one or the other. You can work closely with your agent to craft the policy that meets your farm’s needs.

One question that frequently arises during the process is whether farm and ranch insurance will cover grain ruined in a silo. The short answer is yes, in many cases. However, when it comes to farm insurance, it’s best to be specific.

Check your policy and your coverages, and make sure you talk to your agent about what coverages your policy provides for your silo and grain, which may vary depending on how the grain becomes ruined.

Learn more about farm insurance and how it covers grain ruined inside a silo.

Assessing Your Coverage

If you’re a farmer, you already know that your farm insurance policy includes coverage for just about everything on your property — your home, family, workers and visitors, necessary structures (such as barns, silos, and chicken coops), farm machinery and equipment, livestock, and products.

While these are considered standard coverages, it’s good to know exactly what’s included in your policy and make sure you’re covered for an amount that can help you keep your farm operating if you suffer a loss.

Understanding Key Differences

Few people make a distinction between a silo and a grain bin. More often than not, grain is dry-stored in a bin, a steel structure with moisture and temperature-control properties. By contrast, a silo is typically made from concrete, brick, metal, or wood and is designed to ferment what’s placed inside.

While it’s intended to ferment, silage can still go bad, making it unusable for livestock.

Finding Coverage for Your Grain

It may seem like a trivial matter when you take stock of all the other things you have going on, but the importance of thoroughly understanding the provisions of your farm insurance policy can’t be overstated.

Generally speaking, your silo and the grain in it will likely be insured against damage, but in different parts of the policy and for different reasons.

Your silo is protected along with other buildings and structures on your farm (not including your home) under what’s typically known as “farm structure coverage” or “farm outbuilding coverage.” You can get separate farm product coverage to replace materials and items you use on the farm, such as grain, feed, seed, and silage.

Farm structure coverage may insure against such perils as explosions, fire, hail, lightning, and windstorms, while farm product coverage can insure against grain spoilage and similar issues. It’s a good idea to have both types of coverage to protect your operations from as many disruptive issues as possible.

Consequently, the way in which the grain became ruined will influence the type of claim you file with your insurer.

Enhance Your Farm and Ranch Insurance With These Popular Options

What do you do if your computer system breaks down or you have a large section of electrical fence to repair? Issues like these can disrupt your farming operations.

If you added options for farm equipment breakdown and fencing coverage to your farm and ranch insurance policy, you could get help replacing your computer and fixing your fence. These are just two of more than half a dozen coverage options you can add to your policy to enhance your farm insurance and protect your livelihood.

By necessity, you can customize the farm and ranch insurance you purchase to fit the unique needs of your farming operation. Beyond basic protection for your home, buildings and structures, and farm products, several popular options are available to add coverage to your farm insurance.

7 Popular Options to Enhance Your Farm Insurance

You can add several options to your farm insurance to help guard your business against disruption. Here are a few popular options.

1. Farm Equipment Breakdown

Adding farm equipment breakdown coverage to your policy covers the physical loss of equipment used on your farm, including computers, generators, air conditioners, and boilers. That coverage can help you pay to get the equipment running again.

2. Farm Income Protection Coverage

While farm income protection coverage only guards against insured perils, this add-on to your policy could reimburse you for lost earnings and other expenses if your covered farm property causes you to lose money.

3. Fencing Coverage

Farm insurance doesn’t cover fencing. However, large farms, ranches, and farms in turbulent weather zones or with electrical fencing may find it beneficial to invest in fencing coverage.

4. Livestock Coverage

Basic farm insurance tends to cover livestock for injuries but not illness. With additional livestock coverage, your animals will be covered from death resulting from illness. Moreover, you can be reimbursed for loss of income and insured against legal costs and damages if your livestock injures someone.

5. Commercial Auto Insurance

Your auto insurance won’t cover the farm vehicles driven by your workers. Adding the commercial auto insurance option to your farm and ranch insurance helps you look after your trucks, tractors, and other vehicles.  

6. Equine Coverage

Horses have needs that differ vastly from other livestock. Equine insurance is specific to horses, providing you with coverage for death or theft, loss of use, and major medical or surgical needs.

7. Crop Coverage

Despite covering a wide range of risks, farm insurance doesn’t protect crops grown for profit. This option can help protect your operations against a loss of crops or revenue due to natural disasters, fluctuations in product prices, and other unforeseen circumstances.

These seven popular options can enhance your farm and ranch insurance coverage, giving you bonus protection against losses that might hurt your business.

Explore Your Options

Because farm insurance can be tailored to your farm’s unique characteristics, many optional forms of coverage are available that could help protect your farm and your family. Ask your agent about these and other coverage options that might be available to you.

How Much Farm & Ranch Insurance Do I Need for a Family Farm?

Running a farm takes dedication and passion. It also takes the right kind of insurance. Farm and ranch insurance can provide coverage for your entire property, offering protection for your land, buildings, livestock, and agricultural equipment. But how much insurance do you need for a family farm? 

Types of Farm and Ranch Insurance Coverage

Farm and ranch insurance will provide coverage for your agricultural property — something homeowners insurance alone will not. A farm insurance policy will also typically include coverage for your residential home in addition to your farm. 

However, the exact amount of coverage can be tailored to your specific needs. Here are some insurance options to consider as you operate your family farm.

Equipment Insurance

Farm equipment insurance covers things like your planting and harvesting equipment, as well as equipment you use to manage your livestock. This can be an important policy inclusion for those who grow crops, and you may need coverage that matches the number and value of your farm vehicles.

Livestock Insurance

Livestock insurance protects your animals and will generally include veterinary care, coverage for stray animals, and business protections that guard against unexpected price drops. The amount of livestock insurance will depend on the nature and number of farm animals under your care.

Equine Insurance

Caring for horses is a unique challenge, which is why farm insurance providers offer equine coverage in addition to general livestock insurance. This policy will provide coverage for medical care, loss of use, theft, and mortality. Consider this policy if you own horses, particularly if these animals are a part of your revenue cycle.

Dwelling and Structure Insurance

Farm and ranch insurance typically includes coverage for your home, as well as any other structures on your property. This can include other residential structures, such as cabins, as well as barns, garages, silos, and storage facilities. Most farmers will need some type of insurance coverage on their structures, though the exact amount depends on the type and number of structures as well as the valuation of their home and its contents.

Farm Liability Insurance

Farm liability insurance is designed to protect against disputes that arise from your agricultural activities. 

For instance, chemical drift coverage protects you from claims of damage caused by pesticides drifting to neighboring properties. This can be important depending on the size of your farm, as well as your proximity to neighboring residences and businesses.

Should I Consider Umbrella Insurance for My Family Farm?

Some farmers choose umbrella insurance for their farms. This policy extends the limit of a standard insurance policy to protect against catastrophic business losses. 

While these are excellent policies, they are best suited for large commercial operations and direct-to-consumer farms. Small, family-based farms may not benefit from the additional costs of an umbrella policy.

How Much Farm Insurance Do I Need?

Before you calculate your coverage, you’ll need to review the above list to determine your insurance goals. By talking with a qualified insurance agent, you’ll be able to invest in a policy that aligns with your needs — and your budget.

If My Home Is on the Property, Is It Covered Under Farm & Ranch Insurance?

Whether you operate an agricultural business or just a hobby farm, you know that homeowners insurance is not enough to cover your barns, fields, or livestock. For that, you’ll need farm and ranch insurance. 

But will farm insurance also cover your home? The answer is yes, though always make sure your farm insurance provider offers dwelling and structures insurance on the policy.

What Is the Difference Between Homeowners and Farm and Ranch Insurance?

Both homeowners insurance and farm and ranch insurance will cover your personal property in the event of a fire, theft, or certain natural disasters. But farm and ranch insurance (often simply called “farm insurance”) offers additional coverage for things like your outbuildings, fields, equipment, and livestock.

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Unfortunately, there is no such thing as a homeowners insurance policy that will cover agricultural property or equipment. If you own a farm or ranch, you’ll need the coverage that only comes from farm and ranch insurance.

What Does Farm and Ranch Insurance Cover?

Farm insurance provides coverage for a variety of agricultural needs, including:

• Farm equipment

• Farm structures and outbuildings

• Fencing and corrals

• Livestock 

• Horses

• Liability

Together, these coverage options offer protection for your property, animals, and even your crops. This can be particularly important for farmers who rely on their land and equipment to earn a living. 

Does Farm and Ranch Insurance Cover My Home?

Most farm and ranch insurance policies offer some type of coverage for your home. This is commonly known as “dwelling” or “structures” insurance. This can include your residential house, as well as:

• Silos

• Barns

• Cabins

• Outbuildings and storage facilities

Like a regular homeowners insurance policy, your farm and ranch insurance coverage will protect both your home and its contents from dangers such as fire, theft, storms, and acts of vandalism. Liability coverage is also provided in case someone experiences an injury on your property.

Do I Need Both Homeowners Insurance and Farm and Ranch Insurance?

Most farm and ranch insurance providers include dwelling coverage in their farm insurance policy. If so, you only need to purchase farm and ranch insurance and not homeowners insurance. 

However, in the event that your provider only covers your farm buildings (and not your residence), you either need to purchase additional insurance to cover your home or seek an insurance provider who offers comprehensive coverage for all your needs.

Always remember that while farm insurance will cover both your home and farmland, homeowners insurance is not enough on its own. Only a farm insurance policy will cover both your home and your agricultural property.

Bottom Line: Does My Farm Insurance Protect My Home?

If you already have farm and ranch insurance coverage, check with your provider to make sure your policy covers your residential dwelling. Chances are that your home is already covered. But if you don’t have the right coverage, it may be time to seek an insurance provider that can cover both your home and your farm.

Top 6 Ways to Customize Your Farm & Ranch Insurance Policy

Whether you tinker around a converted greenhouse out back or farm 5,000 acres to earn a living, you need farm and ranch insurance. However, finding a farm insurance policy that covers everything you need isn’t always simple.

An insurance policy does one thing: It protects you and your family against unexpected losses. But on a farm or ranch, those losses can come in many varieties, and there are just as many ways to build your policy.

Farmers and ranchers face distinct challenges and risks. No two farms are the same, so it’s important to work closely with a farm insurance agent to start with a basic policy and then customize it to meet your needs.

Here are the top six ways to customize your farm and ranch insurance policy.

1. Home and Personal Property

The first big item in your farm insurance policy will cover your home and its contents. It also will insure the grass and property within a certain distance of your farmhouse and provide liability coverage for any house guests.

2. Farm Buildings and Equipment and Machinery

Along with your home, you will have to account for all of the buildings (barns, garages, silos, etc.) on your property. You’ll also list equipment and machinery, such as trucks, tractors, and balers, used on your farm or stored in your buildings. Farm insurance covers farm buildings and their contents separately. Farming equipment is expensive, and insurance can prove useful when you need an unexpected repair or replacement.

3. Livestock Sold or Used on Your Farm

For many farmers, an important part of their business involves livestock raised to be sold, cows and sheep that need to be herded, or horses ridden to round up other livestock. 

You can customize your livestock coverage to the specific needs of your farming operation, including equine insurance that addresses horses’ particular needs.

4. Liability Insurance

Another item on your list for farm and ranch insurance should be liability coverage. Even the most seasoned farmworkers can suffer accidents and injuries around vehicles, machinery, and livestock. Liability coverage can help keep your farm safe from financial setbacks if a worker, customer, or visitor is hurt on your farm or ranch.

5. Umbrella Liability Insurance

One potential customization to your farm and ranch insurance is liability coverage beyond the limits of your auto and home insurance. Typically, umbrella liability coverage options range from $1 million to $5 million, but larger coverage limits are available up to $10 million.

6. Crop Coverage

If you grow spices, herbs, vegetables, or fruits to sell, consider purchasing crop coverage. Basic farm insurance policies don’t cover the produce you grow to sell for income. However, this coverage can be purchased separately.

An Agent Can Help Set Your Priorities for Coverage

These are the top six ways to customize farm and ranch insurance, but you might consider even more, depending on your farm operation. A site visit from your farm and ranch insurance agent can help you decide what type of coverage will meet your needs.

What Is an Act of God in a Farm & Ranch Insurance Policy?

Farms and ranches stand more to lose from “acts of God” than any other business. Unforeseen weather disasters cause immediate damage to the products farms and ranches make. While other businesses can protect their inventory from these events, that’s not as easy with acres of crops or herds of livestock.

While every underwriter has different coverage standards, there are common understandings of what events qualify as acts of God. How do they relate to the fields of farm and ranch insurance?

What Is an Act of God?

Legally, an act of God is defined as an unpredictable natural event for which no human being could be held responsible. “Unpredictable” is the keyword in this definition. It separates acts of God from disasters that can be anticipated and managed.

Acts of God can take many forms in the context of farms and ranches. Periods of heavy rainfall or high winds can devastate crop fields. Tornadoes can upend barns, equipment, and other farm structures. Over the last few years, we’ve seen how extended droughts have crippled entire agricultural industries in the Western United States.

Farm and ranch insurance companies that account for acts of God do so in several ways. Many of them include or exclude specific acts of God in their policies. Premiums and deductibles to cover unexpected disasters may be different from other coverages (usually higher).

Because of their nature, assessing the risk of acts of God on farms and ranches can be quite complex. They don’t just suffer property losses — they also experience income and inventory losses.

Are Earthquakes and Floods Acts of God?

Many insurers exclude earthquakes and floods from the list of “acts of God.” True, you can’t blame any specific person for earthquakes or floods. However, they are, in the slightest of ways, “predictable.”

It comes down to geography. Certain parts of the world experience earthquakes more frequently than others. Other areas are mapped as floodplains that are much more susceptible to heavy rains.

Some farm and ranch insurance companies do include earthquakes and floods as acts of God. For the most part, however, those who run agribusinesses and want additional earthquake and flood insurance policies must purchase them on top of standard liability coverage.

How Are Acts of God Covered?

A typical farm insurance policy covers equipment, buildings, structures, feed, livestock, irrigation systems, and vehicles for their insured repair or replacement value. This usually includes acts of God like tornadoes, lightning strikes, winds, thunderstorms, tornadoes, pest infestation, wildfires, and drought.

Insurance policies typically distinguish crops from other farm and ranch assets. Most agribusinesses take out “multiple peril crop insurance” (MPCI) for events resulting in low harvest yields. The federal government regulates the purchase of MPCI policies, and farmers must buy them before growing season deadlines. 

Hail storms are typically covered in separate “crop-hail” policies. That’s because hail could decimate a particular area of a rancher’s farmland but leave others intact.

What Does Your Insurance Cover?

Insurance companies have different policies and limits on losses caused by acts of God. Farmers must examine their insurance documents carefully to see what’s covered and speak to their agents to make adjustments.

Sources:

https://www.law.cornell.edu/wex/act_of_god

https://www.iii.org/article/understanding-crop-insurance

Does Agriculture Insurance Cover My Loss if Crop Prices Collapse?

Farmers are known for being extremely hard workers. They also face unique challenges and risks. Agriculture insurance can protect farms, livestock, and equipment from loss and damage. And yes: agriculture insurance can protect against losses due to price fluctuations. 

Read on to discover how agriculture insurance works and how it can protect your farm.

What Is Agriculture Insurance?

Agriculture insurance is designed to cover the needs of farms, ranches, wineries, and nurseries. It also serves other commercial enterprises that focus on raising livestock or producing crops. 

The exact coverage varies depending on your insurance policy. Commonly, agriculture insurance will cover the buildings, animals, or equipment that constitute your farm or ranch.

Types of Agriculture Insurance

Farm and ranch insurance can be further divided based on the assets covered. For instance, common forms of agriculture insurance include the following:

• Farm owner insurance (protects the physical property)

• Farm livestock insurance (protects animals)

• Equine insurance (covers the needs of horses)

• Farm equipment insurance (protects machinery and tools)

• Farm dwelling and structures (protects homes, silos, barns, etc.)

• Farm liability insurance (covers you in the event of an accident)

• Crop insurance (covers crops)

These policies are designed to adapt to the needs of ranch owners, growers, and livestock-dependent farmers. 

What Does Agriculture Insurance Cover?

Depending on the policy, you can use agriculture insurance to cover such events as:

• Damage to your home, barn, or other exterior structures

• Damage or theft to equipment

• Medical care of livestock

• Accidents that occur on your property 

Certain types of equipment coverage can also provide financing for rental vehicles should a major piece of equipment be damaged or stolen.   

Can Agriculture Insurance Cover Crops?

The Federal Crop Insurance Program (FCIP) has been in place since the 1930s. Today, it’s administered by the USDA, Risk Management Agency (RMA). This program offers farmers coverage if their crops are damaged or destroyed due to events and disasters such as:

• Excess moisture

• Damaging cold

• Hail

• High winds

• Disease

Crop insurance can also protect farmers against price fluctuation that would impact a farmer’s ability to profit from the year’s crop. The FCIP is not, though, the only type of crop insurance commercially available. Many other agriculture insurance providers offer revenue protection coverage that protects against major shifts in price.

How Revenue Protection Insurance Works

Most commonly, crop insurance offers revenue protection based on historic yields, sometimes called the Actual Production History (APH). This is simply the historic (mean) average of your crop yields.

The crop insurance provider will use the APH as well as futures market prices to determine the revenue coverage guarantee. As a result, farmers can remain confident that even if prices should plummet, their income is secure through an agriculture insurance policy.

The Protection You Need

Farmers play an essential role in the food supply chain in the United States. For that reason alone, they deserve all the protection they can get. And with the right agricultural insurance product, growers can find protection even if crop prices collapse.