5 Reasons to consider changing from a Homeowners to a Small or Hobby Farm insurance policy

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5 Reasons to change from a Homeowners to a Small Farm Policy

You have worked hard, you have taken your acreage from a weed infested plot to a workable piece of ground you can be proud of. You have started to realize some income from your hard work, and invested in some structures to help your land grow, and be productive. As your farming operations enter the next phase, you find yourself wondering, how adequate is my present homeowner’s policy? Here are 5 critical questions you need to answer to help guide you. As always, if you have questions, please reach out to Toni or Jan at 208-762-2122 or email Toni

Noncontiguous acreage- Have you added additional property that does not border your present property? Often, we will hear about some land that has become available for lease or purchase. This land , however, is not adjoining our present property. In this case, your homeowner’s liability may not extend to this land, especially if you are farming it, even just for hay, or pasture, for your livestock.

Outbuildings- Are your outbuildings located away from your primary residence? How many outbuildings do you have, what is their worth, and are you using them to sell a product? Is there a stable or a hay barn? What is the rebuilding cost of these buildings Taking an inventory of your outbuildings, their value, as well as their use. These are important indicators in thinking about your protection of these assets. If your buildings are being utilized to produce income in a way that exceeds the limits of your homeowner’s policy, (usually determined by gross income generated), you may need to consider a small farm policy.

Horses-How many horses do you have? Horses obviously present a larger liability concern. One needs to consider use, as well as whether any income is generated. Consider the following example: Your home is worth $500,000, and you have decided to build an 8 stall horse stable, but you only own 2 horses.To help with cash flow, you board a friend’s horses, and charge them a monthly fee, and she occasionally brings friends to ride with her on your property. The stable then becomes a commercial property and may not cover the liability incurred in these activities. To read more about horse insurance please read: As a horse owner, what do I need to know about insurance in Idaho.

Livestock-What livestock do you have on your property? From chickens, to llamas, having property almost always means owning animals. Generation of income from eggs, to zucchini, is a big deciding factor here to provide the correct protection for you assets. If you are selling products derived from your farm, you should consider visiting with us about your protection needs. Some animals, like llamas or alpacas might need special coverage, because they are sometimes challenging to raise and care for, and can come with significant risks, and you may need special coverage.

Farmstand or Farmers Market Liability-Selling your bounty of excess goodness is a good way to help defray the expenses of running your small farm. Having protection for your small farm, that is now a small business, is an important step in assuring your success. Even the most meticulous of farmers can have a liability situation in selling their wares .I read of an organic farmer in California who had bought some fertilizer from another farmer, that was infected with E.coli, sickening several customers who had bought produce from their stand. With hospital bills that can run up to $7000 per day, this unfortunately led to a bankruptcy. As a responsible business owner, I would not only want to protect my assets, but also make whole those who I am liable for.

The bottom line is this: At jan jesberger insurance, that every farm, every situation is different.We understand you and your unique requirements, to protect you home as it grows in your farm.Our farm expert Toni would love to sit down with you, and have a meaningful conversation so you can rest assured that your dreams are protected.