While ranch ownership offers many rewards, it also involves distinct challenges. In addition to understanding what it takes to run a lucrative business, ranch owners must have access to specialized information as well like how to take care of animals and what types of equipment and specialized structures they will need in order to turn a profit. Operational costs associated with a ranch can be high. In order to safeguard their investments adequately, owners must invest in the right type of ranch insurance.
What Is Ranch Coverage?
Ranch coverage is a specialized policy that combines aspects of home and business insurance. You’ll want to protect your land and the structures on it, but you’ll also need some type of protection from liability. Many insurers will write policies for ranchers who are renting the land they are using.
An insurance policy for a ranch typically focuses on four areas:
• The ranch home and its contents: This policy is similar to a standard homeowner’s policy. It provides protection against catastrophes like fire and storms as well as protection against accidental losses associated with theft, vandalism and similar events.
• Ranch structures: This coverage is similar to business property insurance. It provides coverage for building, equipment and inventory, which in this case would be animals.
• Personal property associated with the ranch: This coverage provides protection for furniture and other personal effects.
• Liability insurance: This policy safeguards its holder against claims of premise liability as well as against other claims of injury or property damage.
Other Ranch Policy Options
Other types of optional insurance policies for ranches may be available that offer protection for more specific types of circumstances a rancher may encounter:
• Ranch income coverage: This policy will cover the projected loss of earnings in the event that one of the catastrophes covered by another part of your insurance plan transpires.
• Livestock hazard insurance: This policy will protect the investment you’ve made in your livestock.
• Supplemental service insurance: This policy will reimburse you for any charges you may incur for debris removal or the use of local fire department services.