General Farm Insurance

Overall, the standard coverage is the same, but there are a few notable differences:

Coverage for detached private structures

• Typical coverage includes:
  • Detached garage that is used to park your car/truck
  • Pump house for the pool
  • Small garden shed
  • Gazebo
• Coverage does NOT typically include:
  • Any building that was built for or used for any farm use
  • Detached garage that houses a farm tractor (or any other farm use)
  • Barn that is no longer used as a barn (just personal storage now)

In other words, any building that was built for or used for farming or commercial operations must be insured separately and an additional premium will be charged.

Coverage for outdoor trees, lawns, shrubs, and plants

• This coverage is specific to the landscaping around your dwelling — not the bush lot on the farm. Landscaping coverage for homes located on farm properties is limited to a maximum distance of 100 feet (31.35 metres) from the house.

There are also other limitations that come with operating a business (your farm business) on the premises.

We offer two forms of coverage: basic coverage for fire, lightning, and wind; and broad form coverage for everything (unless specifically excluded). 

We offer three claim settlement options. Depending on the age, use, and condition of your buildings, all or some of the following options may also be available to you:

• Actual cash value — the replacement value less its depreciation
• Replacement cost — the cost to replace your building with a new construction (no deduction for depreciation).
• Utility value — this is a term unique to farm insurance and is often used with large, older buildings that are not being fully used for what they were originally built for. With utility value, you can receive the value for what it would cost to replace the building based on its present use. This is commonly used with grain elevators and older 2-storey bank barns, where the buildings are not being used for their original purpose.

Just to clarify, any equipment that is attached to the building is NOT considered farm machinery — it’s insured as “building including equipment.”

Farm machinery coverage options:

• Choose one blanket limit — if you pick this option, ALL machinery must be insured
• List only the specific machinery you want to insure
• List the larger equipment and blanket the smaller items (valued at under $2,500 per item)

Farm machinery is settled on an actual cash basis at the time of the loss, but we’ll agree to waive any depreciation value on qualifying machinery that’s up to 5 years old (60 months). Partial losses are covered for the cost of repairs without deduction for the depreciation of parts.

We insure all types of farm livestock including dairy, beef and veal cattle, chickens, turkeys, hogs, horses, buffalo, and emus. Different types of livestock require different types of coverage, with the typical maximum limit per head at $4,000, unless specifically approved for a higher amount.

At the most basic level, we provide coverage against fire, lightning, wind, explosion, attack by wild animals, accidental shooting, losses during transportation, etc.

Additional coverage is available for specific types of livestock, such as:

• Heat prostration (poultry)
• Electrical power interruption (hogs and poultry)
• Limited mortality (Option A) for casting, hardware, bloat, rabies, etc.
• Limited mortality (Option B) for animal birth (to the mother giving birth, not to the baby)

Our definition of farm produce includes harvested crops, seeds, herbicides, pesticides, commercial fertilizers, milk, eggs, fruit, vegetables, and anything that’s an agricultural product of the soil. This coverage also extends to packing, wrapping, and advertising materials used with harvested produce. 

When an insured loss occurs, physically damaged items are very likely to be covered. But without coverage for business interruption, you won’t have protection against lost income as a result of the damage.

For example, if there’s a fire to your dairy barn, your barn, livestock, and farm produce is typically insured and will be replaced. But, rebuilding a barn can take up to a year or more to complete and you won’t be getting paid for your milk or the sale of calves during this time. At the same time, your expenses continue: things such as taxes, heat, hydro, and salaries of employees you wish to retain.  

Although optional, we strongly suggest adding coverage for business interruption, as it can replace lost income for up to 12 months after an insured loss.

Farming in not just a business — it’s your way of life, and it’s where you live. Having the right liability protection in place is extremely important, and that’s why we can cover your personal, farm, and commercial liability needs on one policy. Depending on your operation, we may be able to offer liability limits of up to a maximum of $12 million.