Comparing Farm Owner’s Insurance and Homeowner’s Insurance

Getting insurance for your farm is not like applying for home insurance. You have to understand that a homeowner’s insurance policy and a farm owner’s insurance policy have numerous important coverage distinctions. 

Both plans protect your personal belongings and liability risks, but the scope of coverage can vary significantly.

Agents and brokers will need to figure out if the rural dwelling on the land is a house or a ranch. It’s a crucial point to make because there can be significant coverage differences. 

Learn about the most common differences between the two insurance policies in the sections below.

Setting Property Limitations

The coverage for Business Property and appurtenant structures is severely limited under a homeowner’s insurance policy. Any structure that can be used in whole or in part for business purposes on homeowner’s insurance is excluded from coverage for appurtenant structures. 

Whether or whether they are used for a business operation, agricultural facilities such as barns, hay storage, and tack rooms are included. If you board, train, breed, or even just have personal horses, your homeowner’s policy may not cover any losses to those structures.

Handling Care, Custody & Control

Non-owned property in the insured’s care, custody, and control is excluded from the homeowner’s policies. This exclusion applies to any non-owned horse on your land, regardless of how long it has been there.

Livestock care, custody, and control coverage can be added to a Farm & Ranch Package/ Farm Owners Insurance policy with limits starting at $5,000 per horse and $25,000 per incident. On request, higher limitations are available.

Qualifying to Business Pursuits Exclusion

Home-based company entrepreneurs may feel that their homeowner’s insurance will cover their operations. A business pursuit or professionals services exclusion is included in every typical homeowner’s insurance. 

The policy does not cover business operations conducted at home, according to these exclusions.

If a homeowner boards a horse or gives a few lessons in exchange for money, feed, or anything of value, they are engaging in a business activity. Unfortunately, this is not covered by a home’s policy’s liability coverage.

The ISO or AAIS Commercial General Liability forms are used in a Farm Package or Farm Owners Insurance policy to extend suitable commercial and company liability coverage. 

This form does not have a Business Pursuit exclusion because it is designed to cover loss resulting from injury or property damage caused by horse business activities as defined in the policy declarations.

Looking into Business Personal Property

Business personal property coverage is normally restricted to $2,500 on-premises and $250 off-premises for tack, hay provided to boarded horses, and other equipment needed for horse care. 

This level is rarely sufficient to replace this type of horse property, particularly when it occurs outside of the insured site.

A farm owner’s insurance policy specifies the genuine replacement values of farm buildings and structures and personal farm property such that the intent of the property to be covered is clear and there are no business limitations on the use of the property. 

In addition, off-premises coverage for miscellaneous tack and equipment is at least 25 percent of the amount.


As you can see, a farm owner’s insurance policy has features that specifically cover farm-related concerns. When looking for a farm owner’s insurance of your own, be sure to choose a provider dedicated to protecting your property and responsibility while also reducing risk on your farm or ranch.

If you need farm insurance in Arizona, don’t hesitate to contact Crop Insurance Services by AMS. We provide risk management solutions for America’s farmers, ranchers, and producers. Check out our services and project your farm and crops today!

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