What is Farm Equipment coverage?

This coverage includes any piece of machinery or equipment that is used in your farm operation. However, it does not include vehicles such as aircraft, ATVs or Snowmobiles. Your broker should evaluate your coverage needs for all the machinery and equipment that’s important to the running of your farm.

The machinery and equipment can be scheduled (listed) on the insurance policy or covered on a blanket basis by class, such as self propelled or stationary equipment. Because of the huge investment you make in machinery and equipment we will carefully review your coverage to make sure nothing is missing or that there is nothing on the policy that you don’t own any longer.

Newer farm machinery can be covered on a replacement cost basis. Older farm machinery will need to be covered on an actual cash value basis. Because the older equipment is only covered up to its cash value we will review with you regularly to make sure that the limits for each item are correct for its real value. There is no need to pay premium for a coverage limit you will not be paid up to should something happen to the unit.

Since you will likely be buying or selling machinery or equipment during the term of your policy we will explain the notification requirements to make sure newly acquired machinery or equipment is covered under the policy.

Coverage can also be extended to non-owned equipment, whether borrowed or rented. Another coverage that can be added to your machinery and equipment coverage is a loss of use endorsement which can cover renting a replacement unit until the damaged or destroyed unit is repaired or replaced.