Choosing insurance for your farm property can be challenging, especially if you have difficulty distinguishing between coverage options. Though farmowners and homeowners insurance are both designed to guard against liability risks and personal property loss, each type of policy has unique characteristics. Knowing what these are is key for ensuring optimal protection. The following guide explains important differences to be aware of. 

Homeowners

The main purpose of homeowners insurance is to protect your dwelling and the belongings inside. It will help pay for repairs or replacement due to damage caused by certain perils, including fire, inclement weather, theft, and vandalism. Standard policies also cover other structures on the property, such as fencing or a detached garage, as well as provide liability protection in the event a visitor is injured on your premises or you damage someone else’s possessions. 

However, when it comes to home-based business activities, homeowners insurance policies generally exclude coverage. Therefore, any farming operations that you engage in for profit won’t be covered. Additionally, exclusions apply to non-owned property in your care, custody, and control, like horses and other livestock.  

Farmowners 

A farmowners insurance policy has some of the same elements of homeowners insurance, but it features an added level of protection for business activities that are conducted on the property. While this will cover damage to your dwelling and the contents within, it also increases liability limits to account for commercial risks. 

This means farmowners insurance can extend to cover items used as part of the business, including farm equipment, livestock, barns, and stables. Specialized coverage options are available, as well, allowing policies to be customized to the farm’s particular operations. 

For help making sure your farm property is adequately protected, turn to Farm Bureau Insurance of North Davidson. Located in Winston-Salem, NC, this locally owned agency is dedicated to providing flexible, high-quality coverage solutions tailored to meet each client’s specific needs. They offer reliable farmowners and homeowners insurance policies and will take the time to fully understand your situation, so they can recommend the right products for you and your business. Call (336) 764-5990 to schedule an appointment, or visit them online to request a detailed quote.