Insurance: Farm vs. Commercial

[Riverrose28]

I'm not the smartest cookie in the box, can someone please explain to me the difference between farm insurance and commercial ins. or are they the same.

Reason: We've had homeowners ins. with one company for 36 yrs. and farm ins. with another since 1988. The one that holds our home owners wants us to get commercial ins. I don't understand. Any help would be appreciated. Actually we only have one or two clients come to the farm every yr. no tours, most of our sales have been on line or through auctions, but I do realize we need to be protected. Thank you for your advice. Oh to add our property is zoned ag.

 

[MountainWoman]

We have a farm policy that covers our house as well as the farm meaning all our outbuildings and the farm equipment (tractors, etc.), and we are engaged in agricultural pursuits although we do not conduct business on our farm.. Don't know why they'd be suggesting a commercial policy f you're not engaged in commercial pursuits but maybe it varies by state? It will be interesting to see what others have.

 

[bevann]

Terry I just went through major insurance changes.Had Farm Family for over 20 years-company changed and I am now with Westfield Insurance from OH.couldn't be mopre pleased.In March 2011 we had a very bad rain high wind storm.Fri eve 6 PM part of the roof blew off the back of the house and was laying in the drive.I called toll free number and got a real live person.She took info made some calls and at 7PM there was a man at my house to fix what he could in the driving rain.He secured it and was back at 9 AM the next day for further assessment and repairs.Monday he had a roofer come and give me an estimate on repairs.Guy who did the work was fantastic and this company is GREAT!!! There rates are very competitive.We have our farm policy,commercial auto fleet policy and umbrella policy.Nice company to work with>I got the whole back roof on my house replaced for my deductible since it was a semi flat area over the whole back even though it was not all damaged.If you need contact info e mail me and I will give you phone numbers I am also zoned ag and my house buildings and even a rental house in town is covered on the same policy.

 

[Bess Kelly]

Hmmmm....why doesn't your "farm insurance" cover the dwelling? Or have you asked? Maybe your "farm ins" is just a commercial device to cover the operation & equipment, etc.

Not all companies will even offer a farm/multi acreage policy coverage. It has to do with there unintentional liability for various things that can occur on a "farm and its operation or events", as well as their licensure within the State Ins Corp guidelines where you live. They want to cover only the house & yard in a sub-division with family & certain pet dogs, cats, fish. Generally these companies will advise you to get a full farm policy and yours may just want to convert you to "commercial" to keep you and cover their butt. The agents sometimes slip the policies thru (commission, ya know?) and not tell their clients the full truth. Has the agent ever asked about the equipment, suggested a scheduled coverage for equipment, tools, outbuildings, livestock, etc? (livestock in a liability situation, not mortality -- although some offer riders for such, often limited to things such as killed in accident, etc.)

I would certainly consider asking and then combining all efforts under one policy. I use Farm Bureau here in VA and have had no issues -- no claims either LOL -- but was a property & casualty insurance agent in VA for long time. So, heartly suggest you check this out well before you have an ooops and find you paid for nothing....or could have all the coverage for less.

Best of luck......

 

[Miniv]

Sounds like you need Farm Insurance more than Commercial. Does your company offer farm insurance? If not, that's probably why the agent is pushing for a commercial policy - just to keep your business. Not all insurance companies offer farm coverage.

We have a farm policy with Country Mutual. It covers our house, garage, shop, barn, trailer, ATV and includes liability.