Weathering the Storm: Insuring Your Farm Against Natural Disasters

Farms are quite literally dependent on the land and natural world, meaning even slightly unexpected conditions and suboptimal forecasts could incur harsh consequences. As a responsible farm owner, diligent risk management and exhaustive loss control measures can make all the difference in the wake of natural disasters. Fortunately, you can weather these incidents by securing a suitable insurance portfolio.

How Insurance Can Address Disasters

There’s no shortage of natural disasters that might impact farms. While your farm’s location and other unique circumstances can impact its exact coverage needs, understanding how various types of insurance might cast a suitable safety net can prove to be invaluable knowledge. Consider the following potential incidents:

• Floods—Heavy rains, rapid snowmelt and overflowing bodies of water can ruin your harvest, harm your livestock and damage your property. Such losses can be catastrophic for those without flood insurance as you’d potentially be left to manage such losses out of pocket.

• Hail—Your crops may suffer irreparable damage from even an isolated hailstorm. Fortunately, you can secure crop insurance, which may include a separate deductible for hail-related losses. As such, even if only a small area of your farm is affected, you may have minimal out-of-pocket costs.

• Tornadoes—The whipping winds of tornadoes can inflict significant damage and financial loss on your farm. Standard farm insurance policies typically include wind-related losses, although you should check with your agent before assuming such incidents will be covered.

• Wildfires—Even a small blaze can quickly be fueled by your own fields, potentially igniting an inferno that could negatively affect your farm’s finances. Although farm property insurance typically covers fire-related losses, some carriers have started making exceptions for wildfires, so you should double-check your policy.

• Earthquakes—These seismic events can cause devastating damage and are typically excluded from standard property insurance policies. Fortunately, you may be able to add an endorsement to your coverage or purchase a separate earthquake insurance policy to account for these losses.

How to Get Farm Insurance Near You

Contact First Community Insurance & Annuity Center today to learn more about coverage options and secure appropriate policies for natural disasters.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.