Farmers Umbrella Insurance Cost and What You Need to Know

Farmers umbrella insurance can provide an extra layer of protection for your assets, but it's essential to understand the costs involved.

On average, farmers umbrella insurance costs around $200 to $500 per year, depending on your location and the level of coverage you need.

The cost of farmers umbrella insurance can vary significantly based on your state's minimum liability insurance requirements, which range from $15,000 to $300,000.

Many farmers choose to bundle their umbrella insurance with other policies, such as their home or auto insurance, to save money on premiums.

Umbrella insurance provides an extra layer of financial protection for serious occurrences or accidents, covering liability beyond what your primary policy allows.

It's commonly used to cover liability to outside parties, such as vehicle accidents, product liability, or injuries from defective equipment.

This type of insurance can be a lifesaver for farmers, as agriculture is unpredictable and natural weather events, animal-borne illnesses, or transportation accidents can wipe out entire crops or seasons.

Some farmers may not think they're vulnerable to these potential disasters, but umbrella insurance can help them get back on their feet sooner.

The additional premium for umbrella insurance is a consideration, but it's worth the extra expense to protect your farm's financial stability.

To qualify for an umbrella insurance policy, you'll need to have all your insurance policies, including auto, homeowners, and rental property policies, with the same insurance company, typically Farmers Insurance.

You'll also need to have your underlying liability limits up to a certain level, which is $250,000 per person and $500,000 per occurrence for bodily injury liability, and $100,000 liability limit for property damage on your auto insurance policy.

Increasing your bodily injury per person limit to $500,000 can help you get a better rate on your umbrella policy.

A farm umbrella is a type of excess liability coverage that protects your farm and ranch from unexpected lawsuits and financial losses. It provides coverage for farm exposures such as your farm premises, business operations, and larger farm vehicles and trailers.

This type of insurance is provided by BMI Company, Inc., which is licensed to sell insurance only in Missouri. If you're not from Missouri, you may want to consider another insurance provider.

Farm umbrella insurance can help you avoid financial ruin in the event of a lawsuit or unexpected loss. It's a crucial addition to your existing farm insurance policy.

To qualify for an Umbrella Insurance policy, you'll need to have all your insurance policies with the same company, such as your auto and homeowners insurance.

You'll also need to have your underlying liability limits up to a certain level, with a minimum of $250,000 per person and $500,000 per occurrence for bodily injury liability on your auto insurance policy.

Your bodily injury per person limit can be increased to $500,000 for a better rate on your umbrella policy.

For your homeowners and rental property policies, your personal liability coverage needs to be at least $300,000.

Increasing your personal liability coverage to $500,000 can also get you a better rate on your umbrella policy.

Direct-to-Customer Farms can be a great way for farmers to connect with their customers, but it also exposes them to additional liability.

Farmers who sell their wares at farmer’s markets or roadside stands deal with customers in person.

This personal interaction can lead to unexpected situations, such as accidents or disputes, that can be difficult to resolve.

Umbrella insurance can provide the extra protection farmers need to manage these risks.

Having umbrella insurance for your farm or ranch can provide significant peace of mind, as it helps protect you from unexpected expenses that can arise from lawsuits or accidents on your property.

The primary pros to umbrella for your farm and ranch include protecting your personal assets, such as your home and savings, from being seized to pay for damages or judgments.

One key advantage is that umbrella insurance can help cover the costs of defending yourself against lawsuits, which can be very expensive.

This can be especially important for farmers and ranchers, who may be more likely to be sued due to the nature of their work.

Umbrella farm insurance provides an extra layer of financial protection for serious occurrences or accidents on your farm.

The primary pros to umbrella for your farm and ranch include: added coverage for liability to outside parties, protection against accidents or injuries caused by defective equipment, and coverage for damage to farm visitors.

Umbrella farm insurance can help you get back on your feet sooner after a disaster, which is especially important in agriculture where natural weather events and animal-borne illnesses can be devastating.

Farmers who sell directly to customers, such as those at farmer's markets or roadside stands, face additional liability that umbrella insurance can address.

Umbrella farm insurance is often used to cover liability for vehicle accidents, product liability, and livestock-related events, giving you peace of mind and financial security.

For many farmers, umbrella insurance premiums are worth the expense. It’s far easier to deal with monthly or annual policy premiums than the economic fallout from disasters.

When choosing a farmers umbrella insurance policy, it's essential to understand the coverage and limits involved.

Farmers umbrella insurance typically offers a minimum of $1 million in liability coverage, but some policies can go up to $5 million or more.

This coverage extends beyond the limits of your primary auto or home insurance policy, providing an additional layer of protection in case of a lawsuit or other liability issue.

For example, if you're involved in an accident and are sued for $3 million, your primary auto insurance policy might only cover up to $250,000, but your umbrella policy would kick in to cover the remaining $2.75 million.

Umbrella policies often have a deductible, typically ranging from $250 to $1,000, which you'll need to pay out of pocket before your policy coverage kicks in.

The deductible amount will be subtracted from the total liability amount, so in the above example, you'd pay the deductible and then your umbrella policy would cover the remaining $2,650,000.