Protect Farm Assets with Proper Insurance Coverage

By Scout Nelson

Information shared by agricultural extension experts highlights the importance of understanding farm and ranch insurance coverage before wildfire events occur. Most farms and ranches carry insurance policies to protect their assets, and reviewing these policies helps ensure better preparedness during emergencies.

Two common types of insurance policies are property insurance and farm or ranch liability insurance. Property insurance covers items that are listed on the policy. These items may be included under blanket coverage or scheduled individually. For coverage to apply, items must be clearly listed on the policy, and many companies require new items to be added within 30 days of purchase.

Common items covered under property insurance include machinery, buildings, houses, and equipment such as panels and wells. However, certain important assets are not automatically covered. Livestock, fences, and pasture or crop forage losses are usually excluded unless they are specifically scheduled in the policy.

Even when fences are listed, payments may be based on depreciated value. This means the value decreases over time due to wear and use, and the payment may not cover full replacement costs.

Additional insurance options are available for better protection. For example, separate policies can cover pasture forage losses caused by fire. These policies must be in place at least two weeks before a wildfire occurs. Coverage is relatively low-cost, with $20 per acre coverage costing about $0.25 per acre.

Liability insurance is another important tool. It helps protect farm or ranch assets in case of lawsuits. Many producers also choose umbrella policies, which provide extra liability and personal injury coverage beyond standard limits.

In most cases, wildfire losses involving livestock, fences, and forage are not covered unless special policies are purchased or items are properly scheduled. Reviewing insurance policies regularly helps identify gaps and ensures better protection.

Producers are encouraged to speak with their insurance agents to confirm coverage details and prepare for unexpected risks before disaster occurs.

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