Farm Insurance Agency in College Station Texas

Insuring private property that includes horses or other livestock requires a careful review by homeowners and their farm insurance agency. There are a number of policies that could apply; obtaining proper coverage means choosing the right kind. To determine this will involve understanding the many differences between homeowners policies versus farm and ranch insurance, then determine which one provides the necessary coverage that will provide the greatest amount of protection.

Private Property vs. A Ranch

The main deciding factor as to what type of insurance a property requires is whether it is considered private property or ranch property. Homeowners insurance will protect a house and additional buildings as well as possessions, provided the property is not used for a business purpose. If there is any type of farm or ranching operation on the property no matter what its size, it should be insured with a farm and ranch insurance policy.

The challenge arises when smaller private property is used to house more than a few animals being kept personally by the owner. Whether boarding horses for friends, keeping a few different animals, or planting even a small crop from which income is derived, it may be necessary to purchase an actual farm and ranch policy from a farm insurance agency. This is necessary because of the way in which the two policies classify certain belongings and whether such belongings are reimbursable.

What Does Homeowners Insurance Cover?

A homeowner’s policy purchased from a farm insurance agency covers the house, additional buildings listed on the policy, and typical liability protection that any standard home insurance provides. This may or may not include a small barn or stable, depending upon what type of animals are being housed and how the buildings are being used. Homeowners insurance typically covers most types of fencing as well as personal belongings inside the home and other buildings based on listed perils.

Coverage of personal property and home equipment is subject to any policy limitations. Riders for specific property, like horse tack and equipment or certain other valuable items may be required. What these policies do not cover is the livestock itself or any type of liability for business operations.

What Does Farm and Ranch Insurance Cover?

Farm and ranch insurance is necessary when a home property meets some of the requirements for being a business. This could mean housing animals not owned by the homeowner or generating some type of income. In these situations, the buildings relating to the operation must be listed under the ranch policy, while the homeowner’s policy covers the home and the buildings belonging to it, like a garage or pool house.

Ranch policies typically do not cover fencing and most property owners find this to be an expensive coverage; however, it can be added as a rider. It is also important to understand that ranch policies only cover the buildings themselves. Ranch equipment, animal care items, horse tack, and other belongings must all be covered under a separate policy. Some policies may cover livestock, but only for losses based on the animal’s sale value. It is recommended that property owners obtain separate equine insurance that will more thoroughly cover their horses.

There is sometimes a very fine line between property that can be insured under a homeowner’s insurance policy and one that requires farm and ranch insurance. A lot depends on the size of the property, the number of animals kept, who owns them, and what the homeowner does with the animals and buildings. It is important that homeowners discuss their needs with a farm insurance agency so they can purchase the right coverage for their individual situation!

Questions About Home or Ranch Insurance In College Station TX?

Talk To The Farm Insurance Specialists At Jones & Associates!

Call (979) 599-7532!