A Comprehensive Guide to Farmer's Equipment Insurance

Farmers throughout the nation are preparing as the harvest season dawns upon them for one of the busiest times of the year. It is a time for hard work and anticipation but, unfortunately, of some potential risks. One of these risks is that of the very means by which this harvest will be possible: farming equipment. That is where the Farmers Equipment Insurance steps in to ensure the safety of the farmers at this critical point in time. 

What is Farmer's Equipment Insurance? 

Farmer's Equipment Insurance is a kind of coverage that is tailor-made and intended to assure farmers protection from the multiple kinds of losses that may be fiscally catastrophic due to the damage or loss of the farm equipment/machinery/tools required to plant, till, and above all, harvest crops. 

Farming equipment is a major investment for farmers. Destruction or loss of this equipment, particularly during the harvesting season, could pose a major potential source of financial loss and complete stoppage of operations. The Farmers Equipment Insurance provides that needed financial cushion in the event of any destruction or loss, to quickly make the needed repair or replacement and quickly get back to operations. 

Specific coverage details may vary, but as a general rule, Farmers Equipment Insurance will cover damage or loss caused by most of the events outlined below: 

• Natural disasters  

• Accidents, collisions 

• Theft, vandalism 

Some policies also note that they'll pay out if your equipment breaks down or otherwise experiences mechanical failure, ensuring your equipment is kept in good working order. 

Just as crucial as understanding what your Farmers Equipment Insurance policy covers is understanding what it does not cover. Most Commercial Property Insurance policies have exclusions and limitations.  

Common Exclusions 

Commercial property insurance policy will exclude some kinds of property in respect of the cover granted because generally some of the types of property include money, security, accounts, and bills, including land, piers, docks, and wharfs, and any vehicle. In addition to that, special endorsements may be added to the policy where certain types of damage may be excluded, including theft exclusion, ACV roof limitation on roofs over ten years old, and cosmetic damage exclusion for merely cosmetic claims. 

A common exclusion, within commercial property insurance policies, is that for cosmetic damage from wind and hail. In simple terms, cosmetic damage is damage that alters the look of your property but does not affect its functionality or structural integrity. For instance, if a hailstorm dents your metal roof or cracks your siding and neither is causing leaks or jeopardizing the building's structural integrity, your policy may not cover the cost of repair. 

Understanding Policy Limitations 

Policy limitations are policy provisions that know no boundaries and place further limits on the amount of coverage found in your property insurance policy under certain given conditions. For example, it is becoming very common to find commercial roof limitation endorsements. This limitation can greatly vary from policy to policy but normally will limit coverage to cosmetic wind and hail damage. 

Property owners need to read over their insurance policy and understand everything that is not covered or is limited to wind and hail damage. The broker can explain these aspects to a property owner who may wish to go over any limitations of the coverage with them to discover if there are supplementary options in coverage. 

How is the Premium Determined? 

Premiums under Farmers Equipment Insurance are charged on several considerations, most importantly the type and value of the equipment, the level of risk the use of that equipment involves, and the claim history of the farmer.