IS YOUR CURRENT PROPERTY INSURANCE ADEQUATE?

 

If you have a Homeowner's policy providing insurance on your residence…...

 

  1. Are you barns, farm structures and other outbuildings insured for replacement cost?
  2. Is the insured limit of your barns, farm structures and other outbuildings adequate?
  3. Do you have insurance on your farm equipment such as tractors?
  4. Do you have insurance on your tack and horse equipment?
  5. Does the liability insurance extend to bodily injury or property damage caused by your horse both on and off of your premises ?
  6. Does the liability insurance extend if you are operating as a business?

These are just a few of the questions you should ask your current insurance agent to make certain your farm property is adequately insured.

Some differences between a Homeowner and Farmowner Policy:

A Homeowner policy significantly limits coverage for Appurtenant Structures:

  • Appurtenant or Other Structures (Coverage “B”) on a Homeowners policy is usually limited to 10% of the limit of the dwelling. In most cases, this amount is not adequate to replace your equine structure such as your barn or arena.

  • Coverage for appurtenant or other structures is excluded for any structure, which can be used in whole or in part for business purposes. This would include any farm building, such as barns, hay storage and tack rooms whether or not they are used for a business or commercial venture. If you are boarding, training, breeding or even if you only have personal horses, your homeowners policy may not insure those buildings for any loss.
  • A Farmowner policy lists each farm building and structure individually at their respective replacement value so there is no doubt about the intent of the property is covered.

 

A Homeowner policy excludes business pursuits

A home-based business owner may mistakenly believe their homeowners policy will cover their business activities, but a standard homeowners policy contains a specific exclusion for “business pursuit” or “professional services”. The Homeowner policy will specifically exclude any business activity at home.

If a homeowner boards a horse or gives a few lessons in exchange for money or anything of value, this would be considered a business and liability coverage would not apply under a homeowner policy.

  • A Farmowner policy uses the Commercial General Liability Form and thus extends liability coverage for loss arising from bodily injury or property damage which results from equine business activities as declared in the policy.
  • A Homeowner policy excludes non-owned property in your care, custody & control. This exclusion would apply to any non-owned horse on your property, even if there for a short time.
  • A Farmowner policy can be endorsed to include livestock care, custody & control including during transportation of a non-owned horse.

 

Why should you consider a Farm Owners Insurance Policy for your Equine Property?

 

•  A Farm & Ranch Owners Policy will provide replacement cost insurance on your residence.

  1. A Farm & Ranch Owners Policy will provide replacement cost insurance on your household personal property.
  2. A Farm & Ranch Owners Policy will provide replacement cost insurance on your barns, farm structures and other outbuildings on your premises.
  3. A Farm & Ranch Owners Policy will provide Additional Living Expense during reconstruction of your residence from an insured loss.
  4. A Farm & Ranch Owners Policy can include Extra Expense coverage for loss of use of your barn requiring you to board your horses or continue your equine operation at another facility during reconstruction of your stable from an insured loss.
  5. A Farm & Ranch Owners Policy can provide insurance on your farm equipment.
  6. A Farm & Ranch Owners Policy can provide insurance on your tack and horse equipment.
  7. A Farm & Ranch Owners Policy will provide not only your personal and premises liability, but will include equine liability for bodily injury or property damage cause by your horses both on and off of your premises.
  8. A Farm & Ranch Owners Policy can provide insurance for the commercial liability exposures if you operate your horse ownership as a business or offer boarding of non-owned horses, provide riding lessons, horse breeding or horse sales.
  9. A Farm & Ranch Owners Policy can provide Care, Custody & Control Liability offering protection for you should legal action be taken against you for the death or injury to a non-owned horse in your care.

 

Don't wait until you have a loss to find out if you are properly insured.

Contact Smith-Embry Insurance Associates, Inc.

We will gladly review your current insurance and make recommendations on the insurance which best suits your needs, and offer a Property & Liability Insurance Quote for your consideration.

 

 

Smith-Embry Insurance Associates, Inc.

3044 Breckenridge Lane, Suite LL1

Louisville , KY 40220

Phone: 502-493-9911 Fax: 502-493-0070

Website: www.insurehorses.com

Email: basmith@insurehorses.com or tamara@insurehorses.com