Agricultural insurance is not a simple matter. It is necessary to analyze several aspects in order to obtain the right coverage that really meets your unique needs.
Farming Residences and Facilities
An agriculutral insurance policy protects the owner's private residence as well as their personal property and additional living expenses. It is essential to check "The agricultural risk" because it is the farmer's main income.
For all farm facilities, a proportional rule is applied and must be respected so that the owner does not have to assume part of the loss in the event of a claim. Consult Lussier's agricultural experts to make sure you have the right coverage.
It is recommended to cover the building and its equipment in one global amount and according to an adequate value, considering the "replacement value" since most insurance contracts include this clause. It is also suggested to insure concrete stave silos, poured concrete, harvestore and farm products, such as hay, crops, etc. Farm equipment is generally insured on a market value basis and may be eligible for replacement cost coverage under certain criteria. This amount must be reviewed regularly and the owner must also advise if he/she does paid farm work.
Generally, there is a clause called "extended warranty" that covers the farmer for the use of machinery that he does not own. It is important to verify if you are well covered in this eventuality to avoid unpleasant surprises down the line.
Animals and Agricultural Insurance
Animals can be covered with a standard or extended coverage. The latter is more expensive but includes additional coverage. It is important to note that this is not a life insurance policy, but an accident insurance policy.
If an agricultural producer owns animals in co-ownership or if he houses animals that do not belong to him, he must advise his insurance broker.
The "liability" section is very important and is part of the insurance contract. There are additional coverages that can be added, such as clearing costs, loss of income, machinery breakdown, extra expenses and pollution.
