When Should I Review My Farm Insurance?

The ebb and flow of farm life is marked by seasons, harvests, and cycles of growth. Just as crops need regular tending and livestock periodic checks, your farm insurance policy also requires attention. A timely review ensures that the safety net you’ve put in place remains relevant and robust, offering optimal protection against the evolving challenges and risks of agricultural life.

Why Regular Reviews Matter
Farm insurance isn’t a one-off task to be checked off and forgotten. It’s a living document reflecting the state and aspirations of your farm. As your farm grows, diversifies, or even shrinks, the risks and assets associated change. A regular review helps align your coverage with these changes, ensuring you’re neither over-insured (paying premiums for assets you no longer have) nor under-insured (facing uncovered risks).

Key Times to Review Your Farm Insurance

•  Annual Check: Just as you review and adjust your farming strategies annually, do the same with your insurance. An annual touchpoint ensures any minor changes, new purchases, or asset disposals are factored into your coverage.
• After Major Purchases: Acquired a new tractor? Built another barn? Significant additions to your farm’s assets demand a quick review to ensure they’re adequately covered.
• Post Expansion or Diversification: If you’ve branched into dairy from grain or expanded your acreage, these major operational shifts necessitate a revisit of your insurance framework.
• Changes in Farm Ownership: Whether it’s welcoming a new partner or handing the reins to the next generation, any alterations in farm ownership or management structure can have insurance implications.
• Following a Claim: After you’ve filed a claim, it’s prudent to assess the incident’s cause, evaluate if such risks could recur, and check if your current coverage addresses them adequately.
• Legislative or Policy Changes: Sometimes external factors, like changes in agricultural regulations or shifts in insurance industry standards, can impact your coverage. Stay informed and adjust accordingly.
• Market Value Fluctuations: The value of crops, livestock, or equipment can fluctuate based on market conditions. Regularly evaluate if the insured value mirrors the current market value.
• Changes in Risk Profile: Moved to an area prone to floods? Started storing hazardous materials? These alter your farm’s risk profile and, by extension, your insurance needs. 

Making the Most of Your Review

When it’s time to review, approach it systematically:

• Update Your Inventory: Ensure you have a current list of all assets, including machinery, structures, livestock, and even smaller tools.
• Re-evaluate Your Farm’s Risk Profile: Understand the potential risks associated with your location, operations, and assets. Factor in both historical data and emerging threats.
• Seek Expert Guidance: Your insurance provider or agent can offer insights into industry trends, potential coverage gaps, and suitable solutions.
• Compare and Contrast: While loyalty has its merits, periodically comparing offerings from various insurance providers ensures you’re getting the best deal.

Your farm is more than just a business; it’s a legacy, a testament to hard work, resilience, and the undying human spirit’s connection with the land. As it evolves, so should its protective shield. Regular reviews of your farm insurance policy ensure that this shield remains strong, adaptive, and ready to defend against the myriad challenges that come your way. So, amidst the hustle of sowing and reaping, take a moment to ensure your farm’s future remains as promising as its present.