Many different types of risks are present on farms.  From machinery, to irrigation systems, to buildings, our comprehensive farm policies are designed to cover all of your farm’s insurance needs. We have partnered with several different insurance carriers to help us insure your farm – no matter what your current circumstances are.

Below are some common terms that are used throughout the farm policies:

Replacement cost – Will pay to replace the item damaged, not just reimburse you for its current value

ACV (actual cash value) – this applies when an item either doesn’t qualify for replacement cost, or the insured choosing not to insure the item for replacement cost.  This coverage pays for the value of the item at the time of the loss.  For example, if a 20 year-old pivot irrigation system has a total loss, the company will pay for what a 20-year old pivot irrigation system will cost at the time of the current market conditions.  Replacement cost, on the other hand, will pay to fully replace that pivot with a new one.

Blanket Coverage – Blanket coverage may have different conditions with each company.  However, the general idea behind a blanket is that a total dollar amount is assigned to all machinery.  In the event of a loss, part of that limit will be used to cover a particular piece of equipment.  The advantage of having a blanket is that insurance companies realize that sometimes people forget to add equipment to their policy.  The blanket is designed to cover those pieces of equipment (so long as other requirements are met).

Scheduled Machinery – Coverage is provided on a broader scope.  By scheduling property to your policy, not only are you ensuring it will be covered, but you are also ensuring that it will be covered for more perils (types of losses) than if it was on a blanket.  A common form of coverage that is included on scheduled machinery, but not on the blanket is ingestion coverage for combines.

**** All coverages are subject to the terms, limits and conditions of your policy contract

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