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Just 5 Questions
About.....
By Kindra Gordon |
When
disaster strikes, some ranch owners may find gaps in their
insurance coverage – the hard way. A better way to be prepared is
to know what kinds of losses are covered and which are excluded
from your policy in advance, so there are no unpleasant surprises
down the road. |
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Jessie Telford and Patty Clark work as agents for Ranch
Insurance, which is part of the Sage Insurance Center family and
offers numerous insurance products with some of the nations
leading carriers. Telford and Clark specialize in ranch and
equine insurance needs and each draw from their own agricultural
backgrounds. Telford is based in Caldwell, Idaho and Clark is
located in Bend, OR, and they are licensed in several states
across the West, as well as New York. Here, they answer some
common questions about ranch insurance needs:
- What are some of the common mistakes you see made in
insurance coverage for farms and/or ranches?
Telford says lack of liability coverage for livestock in the
operation is one common mistake she sees in policies. She
explains, “The insured needs to be certain they have coverage if
an animal were to get out on the road and hit by a car because
the livestock owner would be at fault and needs to have coverage
for this. If the person would die or get seriously injured the
livestock owner would be responsible for costs and that makes
insurance very important.” She notes that there are differences
in insurance needs depending on if you are in an “Open or
Closed” range, but it is a topic that needs to be discussed with
your insurance agent.
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What is another factor that often is overlooked in ranch
coverage?
Telford and Clark say a frequent mistake they see farmers make
is inadequate stored product coverage. For example, if three
years ago farmer Jo stored $50,000 of potatoes in Barn A. Those
potatoes were all sold and he hasn’t put any potatoes back in
that barn, he now stores them in Barn B. If Barn B were to burn
down there would be no coverage because Barn A was the only
place they were covered, unless they called their agent and
notified them of the change.
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How does
that apply to
stored hay?
Telford says with hay stacks, there is a $10,000 limit on each
stack, unless the agent adds an agri-plus endorsement to
increase the stacks to $100,000. She explains that the stacks
have to be at least 100 feet apart for the insurance company to
pay for multiple hay stack losses. All of these hay stack limits
and rules need to be properly explained to the insured so he can
be sure his stacks will have coverage, she adds.
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What other insurance coverage products do you like to see
included in farm or ranch policies?
Telford says she includes a rented/barrowed equipment
endorsement on most policies. “It will cover the insured, up to
$50,000, if he were to wreck any barrowed or rented equipment.
This endorsement is very affordable, costing between
$100-$200/year,” she explains.
She also recommends adding a Tack/Tool/ and Equipment floater
for $20,000. This would cover the insured for many smaller items
without having to list each item individually. There is a $2000
per item limit and a total limit of $20,000. Telford says,
“Since this is a floater it will cover losses anywhere in the
US. If you were at a rodeo and someone stole your
saddles/generator out of your trailer, they would now be
covered.” This floater costs less than $100/year.
Telford also likes a Farm Package Policy because within the
package Auto or Truck premiums are offered lower rates.
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Any
final
tips?
Clark and Telford say the most important factor a ranch owner
should consider in designing their insurance coverage is finding
the correct agent. “The agent needs to have a true understanding
of a working farm and ranch. Only your agent will know exactly
what the insurance companies have to offer and it is their
responsibility to get you the best coverage possible. If they do
not know the business you are in, how would they know exactly
what coverage you need?” says Telford.
She concludes, “Find an agent that knows where your highest
amount of risk lies all the way down to the least amount of
risk. Then have the agent put a package together that you, the
client, agrees with both on coverage and cost.”
To contact Telford or Clark visit their website at
www.ranch-insurance.com or call 888-382-1611. |
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