Tag: Home Insurance

Farm and Ranch Insurance vs. Homeowners Insurance: What’s the Difference?

Own a farm or ranch? Learn how farm and ranch insurance differs from homeowners insurance and why having the right coverage matters.

If you live on rural property in Oklahoma, you might wonder whether homeowners insurance alone is enough to protect your home, land, and livelihood. While homeowners insurance is designed to cover your residence and personal belongings, farm and ranch insurance offers broader protection for your agricultural operations, livestock, and equipment.

At OKFB Insurance, we’re here to ensure your coverage matches your lifestyle, because your property is more than just a home, it may be your way of life.

What Does Homeowners Insurance Typically Cover?

A standard homeowners policy provides essential protection for:

  • Your home’s structure against covered perils
  • Personal property such as furniture, clothing, and electronics
  • Liability coverage if someone is injured on your property
  • Medical payments for guest injuries
  • Loss of use, such as hotel stays if your home is uninhabitable due to a covered loss

While homeowners insurance is crucial, it doesn’t cover your farm or ranch operations, equipment, or livestock.

Learn more: Homeowners Insurance

What Does Farm and Ranch Insurance Cover That Homeowners Insurance Doesn’t?

Farm and ranch insurance combines the protection of a homeowners policy with specialized coverage for your agricultural property and operations. It can include:

  • Barns, sheds, and outbuildings
  • Farm equipment and machinery, like tractors or combines
  • Livestock coverage, including animal collision
  • Hired labor or farm employees
  • Farm liability, protecting you if someone is injured due to farm operations

This coverage is customized line by line, ensuring you’re protected for the unique risks your property faces.

Learn more: Farm & Ranch Insurance 

How Does It Cover Personal Property Differently?

While homeowners insurance protects personal belongings, farm and ranch insurance covers your income-producing property, such as:

  • Tractors and farm machinery
  • Livestock
  • Tools and supplies used in farm operations

Each item is added individually, creating an a la carte policy tailored to your farm’s needs.

What About Hobby Farms or Small-Scale Operations?

If you have a small hobby farm – like a large garden or a few chickens – your homeowners insurance may be enough. However, if you have farm exposure, such as livestock, crops for sale, or hired workers, farm and ranch insurance is recommended.

Your OKFB agent can help determine if incidental farming coverage added to a homeowners policy is sufficient or if a full farm and ranch policy is needed.

When Should You Consider Farm and Ranch Insurance?

There isn’t a strict acreage or income cutoff, but consider farm and ranch insurance if you:

  • Raise livestock or grow crops commercially
  • Own large equipment for agricultural use
  • Have hired farm employees
  • Operate, lease or inherit more than 2 acres with active farming exposure

What Risks Are Not Covered by Homeowners Insurance?

Standard homeowners policies generally don’t cover farm-specific risks, including:

  • Damage to barns and farm structures
  • Loss of livestock due to collision or covered perils
  • Farm liability for agricultural operations

How Do Premiums Compare?

Premiums vary widely based on your property, location, equipment, livestock, and type of operation. Because farm and ranch policies are highly customizable, your OKFB agent will work with you to create a plan that fits your needs and budget.

Do You Ever Need Both Policies?

Typically, you will have either a homeowners policy or a farm and ranch policy, not both. Farm and ranch insurance combines homeowners coverage with additional protections, avoiding duplicate coverage while ensuring you’re fully protected.

A Common Misconception

Many rural homeowners think “I don’t qualify for farm and ranch insurance.” In reality, if you may have farm exposure, even minimal livestock or equipment, and specialized coverage could save you from risk.

Key Question to Ask Your Agent

When deciding between homeowners and farm and ranch insurance, ask:

“Can I describe my property and operation so we can build coverage that protects everything important to me?”

Protect What Matters Most

At OKFB Insurance, we take the time to understand your goals and lifestyle. Whether you’re protecting your family home, your land, or your entire farming operation, our agents are here to create coverage that fits your life in rural Oklahoma.

Contact your local OKFB agent today to discuss whether farm and ranch insurance is right for you.

We’re Here to Help

Whether you’re a longtime policyholder or just starting to look for insurance options, we’re here to 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.

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What to Know Before Making A Claim

No matter how prepared you are, sometimes life deals you a bad hand. If you’ve experienced property theft, severe weather damage, a car accident, home fire or another unfortunate incident, calling your insurance company may not be the first thing you think about doing. However, once you’re safe, it’s important to act quickly. Starting the claims process early helps you get back on your feet as soon as possible.

If you’ve never needed to file a claim on your auto or home insurance policy, the process might seem unfamiliar and daunting. That’s where we come in to help. Your local OKFB Insurance agent can answer any questions you may have about how insurance claims work. The guide below breaks down some of the key elements to know about the process.

Communication is critical

As soon as you’ve suffered a loss, it’s important to communicate the details to your insurance company. Even if you’re uncertain whether the event is covered or if you plan to file a claim, let us know what happened so that our team can help evaluate the coverage you have and guide you through the next steps. In some cases, there may be a limited amount of time to file a claim after you’ve experienced a loss. Getting in touch with your insurance agent quickly can get you a better understanding of the finer details of your policy, but it can also help you avoid missing out on the timeframe you’re eligible to file a claim.

Document the claim

More is always better when it comes to documentation for insurance claims! If the claim involves theft or vandalism, you will likely need to file a police report to submit alongside your claim. Keep note of who you speak to and who inspects your property. It’s also important to document all damage, stolen items, or anything else that will substantiate the claim. For claims involving property damage, document as much as you can about the items and approximate value. It’s also important to take pictures and video if possible. You should also build an inventory list that is specific to the brand and model of the damaged items. This will help your agent accurately assess what is covered under your policy and your options for reimbursement.

Appraise damages and start repairs

Once a claim is filed, most insurance companies will deploy an adjuster or contractor to assess the extent of the damages. This could involve coordinating with a local mechanic for auto insurance claims or personally inspecting the property for home claims. They will ask you certain questions and give an estimate for how much it will cost. You’ll receive payment from your insurer once the deductible is paid and you have agreed on a settlement amount. Depending on the type of claim, these payments may come as a one-time lump sum for replacement costs or as incrementally released funds throughout the repair process. Your agent or adjuster can help guide you through the options available for payment and securing contractors for repairs.

We’re here for you

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 media! This kind of information and more is just a click away. You can find us on Facebook, Instagram and LinkedIn.

Is My Home Underinsured?

How do you know if your home is underinsured? In this blog post, we touch on some common signs that may indicate a need for increased Home Insurance coverage. Whether you just bought your first home or you’ve been a homeowner for years, keep reading to learn more!

How to Determine if Your Home is Underinsured

One of the most obvious signs that a home may be underinsured is if current coverage couldn’t cover the cost to rebuild if it was severely damaged. For example, if there was a major storm or fire. This is a major indication that you may need to review your policy and talk to an insurance agent to determine the best plan for your situation. 

There are other less obvious signs to keep in mind. For example, if a home has outdated features, it may not be worth as much as a newer home. This means that a homeowners insurance policy may not cover as much in the event of a claim. Additionally, consider increasing your coverage if you have expensive belongings to ensure they’re protected in case of damage or theft.

What Type of Coverage is Available?

The first step is to understand the different types of coverage available. There are a few types of coverage that homeowners should become familiar with: Cash Value coverage and Replacement Cost coverage.

Cash Value coverage is based on a home’s current condition and provides reimbursements for its monetary worth. Depreciation can happen over time, especially pertaining to older homes. It’s important to consider whether or not a home can be fully rebuilt based on today’s cost estimate, instead of the initial price when it was originally built.

Replacement Cost coverage is another type of coverage that homeowners can purchase. This type of coverage will provide a reimbursement for the cost of rebuilding a home using the same type of materials. This policy could require enough coverage to restore a home to new, so it’s important to consider how much it would actually cost, as opposed to covering market value. For example, the price of a home today may not be at the same rate as the rebuild.

Currently, there are issues surrounding inflation that may lead to the adjustment or change in the costs of goods and services across Oklahoma. Consider taking some time with your insurance agent to review your insurance policies to discuss if your coverage may be impacted. They can help you assess your home’s value and ensure you have the proper coverage.

If you have any other questions about insurance, connect with us today. We are happy to help you find the coverage that best meets your home, auto, commercial and life insurance needs.  

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Top Insurance Questions Answered by Insurance Agents – Part 3

Insurance can be confusing and that’s why some of our agents took the time to answer a few of the most frequently asked questions. If you have any other questions or need additional clarification, please do not hesitate to reach out and contact your local OKFB agent today!

What is Insurance?

Insurance is a contract between you and a provider. You pay your premiums (typically monthly or annually) and an insurance company agrees to pay for your covered losses. It can help protect you from the financial consequences of unexpected events, such as car accidents, fires, or theft.

What Does Homeowners Insurance Cover?

Homeowners Insurance can help protect your home and possessions from damage or loss due to covered perils. This can include fire, windstorm, hail, water damage and theft. It also offers personal liability coverage. It can also help financially protect you if you are sued for causing property damage or someone is severely injured at your home.

What Does It Not Cover?

Every home policy is unique to each individual, location, cost of a home, and past credit history. To cover other aspects, you may need extended coverage. Have an open conversation with your agent about which parts of your policy may need to be expanded (i.e. by-laws, earthquakes, floods, etc.). However, typical wear and tear is not covered and should be maintained over time.

What Does Auto Insurance Cover?

Auto coverage can help financially protect you if you are in covered accident. It may cover damage to a car, as well as potential medical expenses and property damage incurred by you or other people involved in the accident.

Does a Small Business Need Insurance?

A business that is run through your home by one or two people might not need workers’ compensation insurance, but it could need more coverage than your average homeowner’s policy. Make sure to double-check your home liability and property policy to see whether you are financially covered. Be sure to stay in touch with your OKFB agent about your business coverage needs.

What is the Difference Between Term Life and Whole Life Insurance?

Term life insurance provides coverage for a specific period of time, such as 20 years. Whole life insurance provides coverage for your entire life. Term life typically has lower premiums than whole life, but it does not build cash value. Whole life typically has higher premiums than term life policies, but it builds cash value over time.

We hope you found these questions and answers helpful! If you have any other questions, please do not hesitate to connect with us. We would be happy 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 media! This kind of information and more is just a click away. You can find us on Facebook, Instagram, and LinkedIn.