6 Essential Farm and Ranch Insurance Terms You Should Know April 4, 2023 Farm and ranch insurance is crucial for your agricultural operations. It protects not just your business, but also its many assets–from the buildings and tools to the animals and crops it depends on. To help you better understand farm and ranch insurance, let’s take a closer look at some of the jargon associated with it. Farm Implement Farm Implement includes equipment such as harvesters, planters, tractors and trailers. These machines provide a great deal of assistance to farmers in completing tasks like harvesting crops, planting seeds and transporting goods. They can be expensive items, so insuring them is the best way to protect your investment. Dwelling vs. Structure You might notice there’s a difference between the coverage for a dwelling versus a structure. This is because a dwelling is a place where someone lives, like a house or mobile home. A farm structure is a building that isn’t used for residence, like barns, corrals and silos. These structures typically have different coverage than dwellings. There’s also “other structures,” which are non farm-use structures on the same lot as your dwelling, like a detached garage. New Farm Under Construction This refers to a special policy that covers a farmer or rancher’s primary residence and other structures. These kinds of investments can be costly, so it’s important that they have adequate protection from any potential loss due to damage or destruction by things like fire, theft or weather events. Animal Mortality This is a term used for the coverage option that provides compensation if any of your show animals die unexpectedly while under your care. This type of policy will pay out a certain amount based on the value of the animal as determined by appraisers. It’s important to understand what kind of animals your policy covers—and possibly excludes—so you can make sure you’re getting proper protection for all your livestock investments. Animal Collision No, this doesn’t mean your animals are colliding with each other. Animal Collision is a common component of farm and ranch insurance policies which pays out if one of your animals is killed after being struck by a vehicle on the road. This ensures that you don’t have to bear full financial responsibility for any unfortunate incidents involving your livestock and vehicles. However, this does not apply if your livestock are struck by you or a vehicle you own. Comprehensive Coverage Comprehensive Coverage isn’t just a term used to describe your current policy. It’s actually a coverage option that provides additional protection for things like hail damage, theft, fire or vandalism that are not related to collisions with other vehicles on the road. Additionally, this helps cover costs associated with repairing damages caused by external forces outside those covered by traditional farm auto policies. Understanding these terms helps ensure you understand your policy, your benefits and when you need to file a claim. We’re Here to Help Whether you’re a long-time policyholder or just starting to look for insurance options, we have team members who can help. If you have questions or concerns that you want to discuss, connect with your local OKFB agent today. If you have any insurance-specific questions, we would love to help you find the coverage that best meets your home, auto, commercial and life insurance needs. Don’t forget to follow us on social! This kind of information and more is just a click away. You can find us on Facebook, Instagram and LinkedIn.
Defining Insurance Jargon January 21, 2021 Insurance has your back by ensuring your assets are covered, but insurance jargon can often get in the way of you clearly understanding your policy. To help make sense of your insurance policy, here are 10 common insurance terms that could help when both reviewing policies or speaking with your agent. Line(s) of Insurance: A class of type of insurance e.g. home insurance, auto insurance, commercial insurance, etc. Example: Charles has two lines of insurance with OKFB: Auto Insurance and Farm & Ranch Insurance. Deductible: A specified amount of money that a policyholder must pay before an insurance company will pay a claim. Example: Esther has to pay a deductible of $300. After she pays her deductible, OKFB will pay the remainder of the claim that is stated in her policy. Claim: A request or demand for payment from an insurance carrier, as defined in the policy. Example: Carl and Robert filed a claim after a tornado impacted their car and farm. See how Billy and the rest of our team immediately worked to fulfill it here. Coverage: The extent an item or property is insured in the event of an accident. Example: Daniel got a full coverage auto insurance policy with OKFB, so he is covered in the event that he is in an accident. Umbrella Coverage: Provides higher limits of protection against bodily injury or property damage claims by a third party. Example: After careful consideration, Anthony decided that umbrella coverage would offer greater protection and peace of mind. Risk: The chances a loss could potentially occur. Example: Christie carefully explained the risks associated with lower coverage insurance policies, so I opted for more coverage. Policy: The contract between a policyholder and insurance carrier. Example: Lauren has an auto insurance policy with OKFB Insurance, so OKFB insures her vehicle in the case of an accident. Premium: Cost an insurer sets for the coverage listed in an insurance policy. Example: Marco’s premium for his homeowner insurance is $1,200, so he pays $100 every month. Quote: An estimate of premium for a specific line of insurance/policy. Example: Ashley just bought a new home and was looking for the best coverage on Home Insurance, so she used OKFB’s Instant Homeowners Quote to find OKFB’s prices. Dwelling: A place of residence, e.g. a home, mobile home, etc. Example: After talking to my agent, I got Dwelling Fire Insurance on my vacation home in Broken Bow. Check out our glossary for more common insurance terms. If you have any questions or want further clarification about an insurance term contact your OKFB agent. Also, don’t forget to check in regularly with your agent to ensure your coverage is up to date. We’re here to help you through the unexpected.
