Insurance 101: 6 Things You Should Know about Farm Insurance

Insurance is necessary because they protect you from having to pay for damages or losses that may occur. Without insurance, you would be responsible for paying for any damages or losses that occurred, which could be very costly. Some of the most common examples of insurance are home, auto, and life insurance, which most people have. However, insurance also applies to things you may not know possible, such as farms.

As the name suggests, farm insurance helps protect farmers from having to pay for damages or losses that may occur on their farms. This can include things like crop damage, livestock loss, and more. Farm insurance can help farmers keep their business running after an accident or loss and help them cover repairs or replacement costs. However, few people know how to farm insurances work, so we’ll discuss lesser-known details about them. These include:

#1 – A Standard Homeowners’ Insurance Covers Farming Activities

Few homeowners know this, but homeowners insurance sometimes covers farming activities. Because farming is considered a business activity, there are limits to what is covered. For example, most homeowners’ policies will not cover any livestock or crops grown for commercial purposes. However, if you have a small farm with a few animals and grow your own food for personal consumption, your homeowners’ policy may provide some coverage.

#2 – Farming for Profit Requires a Different Policy

There’s a fine line between farming for personal use and making a profit, so different policies apply to them. Farming for profit is a business, and businesses require other policies than personal farms. For example, businesses must be insured against liability in accidents, follow zoning laws, and obtain the necessary permits and licenses.

#3 – A Farm Owner’s Policy Is Needed If You’re a Full-Time Farmer

If you’re farming as a full-time job, a farm owner’s policy is needed because it provides coverage for your dwelling, other structures on your property, personal property, and liability. A standard homeowner’s policy will not provide the same level of coverage as a farm owner’s policy, so it’s important to ensure you have the right type of insurance in place if you’re running a farm.

#4 – Not All Coverages Cover Commercial Structures

Not all coverages extend to commercial structures built on the farm property. Commercial structures are not considered part of the “farm” per se and thus may not be included in a standard farm insurance policy. For example, if you have a small shop on your farm where you sell products, this shop would not be considered part of the farm and would therefore need a separate policy. The same goes for any other commercial structure, such as a storage shed or barn used for business purposes. If you’re unsure whether your commercial structures are covered, it’s always best to check with your insurance provider before assuming anything.

#5 – Farm Insurance Coverage Is Not Standard

Many believe that farm insurance covers many things, but this is never the case. Since every farm is different, different types of insurance coverage are available to protect farmers. Depending on the farm type, the operation, and the location, different types of insurance coverage may be necessary to protect the farmer and their assets.

#6 – Livestock Requires Special Coverage

Livestock isn’t covered in standard farm insurance coverages. They’re not a farming activity because they’re not being grown for profit. Livestock requires special coverage because of the unique risks they pose. For example, livestock can easily escape and cause property damage or injure people. They can also contract diseases that can be costly to treat.


Farm insurance is essential for any farm owner because it provides financial protection in the event of a loss. Many types of farm insurance policies are available, and choosing the one that best suits your needs is vital. Farm insurance can be expensive, but protecting your business is worth the investment.

If you’re looking for farm insurance in California, Crop Insurance Services by AMS can help you! We provide comprehensive insurance options that cover equipment, structures and buildings, liability, and livestock, all for affordable prices. Simply call 800-454-8148 today to learn more!

Contact us today!

and connect with an insurance specialist.