Top 5 Farm Insurance Myths

Taking care of your crops, livestocks, upkeep and more is your responsibility and livelihood. To help, we cover your farm or ranch the way you need. We understand Farm Insurance coverage can be stressful to figure out. Especially since there are a number of aspects to think about. When obtaining coverage or looking to update your current policy, stay aware of these common Farm Insurance myths.

Myth #1: Farm Insurance Offered as a Standard Package

  • We know most farm and ranch operations are unique and all have different needs. That’s why Farm Insurance policies are not usually standard packages. There are a variety of policy offerings that are designed to be customized to the specific needs of your farm or ranch. 

Myth #2: Crop Insurance Premiums are High 

  • To encourage farmers and ranchers to use and obtain crop insurance, it is federally subsidized. This means the government helps cover some of the costs. Additionally, to increase accessibility for farmers and ranchers joining the industry, there are programs through the USDA’s Risk Management Agency (RMA) that include a lower premium subsidy and a waiver against fees.

Myth #3: Disaster Assistance > Crop Insurance

  • Disaster assistance coverage includes types of crops, losses, etc., but is limiting. While crop insurance provides a guaranteed amount of coverage. This gives farmers and ranchers the chance to cover an array of crops and losses. 

Myth #4: Farm or Ranch Vehicles Need Auto Insurance Coverage

  • Auto insurance covers most vehicles. However, trucks, tractors or vans used for farm and ranch operations will likely need farm auto coverage to ensure it is covered for your specific needs. 

Myth #5: Crop Insurance Only Covers Corn or Wheat Growers

  • Federally subsidized crop insurance is open to more than 500 different types of crops. Additionally, there is no required minimum acreage to qualify for crop insurance. It is also available nationwide.

There is a lot to think about as you explore Farm & Ranch Insurance policy options. If you have questions or would like to discuss any of these myths, consult your local OKFB Insurance Agent today.

Don’t Get Fooled By Top Insurance Myths

When it comes to shopping around for insurance, or even when it’s time for an annual review of your current policy, it can be overwhelming to sort through the sea of information about insurance. Furthermore, popular myths and misconceptions about insurance can leave you even more confused. Check out some of the top myths we hear, and the facts that bust them.

Myth: Life insurance is not necessary until I’m older.

Fact: Life insurance can be a valuable investment at every life stage. Whole and universal life policies not only provide a death benefit, they also allow you to use accumulated cash value for plans such as buying a home or retirement, meaning investing younger can yield benefits for later in life.

Myth: All the belongings in my house are covered by my homeowners policy.

Fact: There are different types of homes and each home varies in the features it has and the homeowners policy it needs! Limitations may apply to specific items, especially those that are high in value. Plus, items you may consider part of your home may be considered separate within your policy, such as a detached property.

Myth: Earthquake and flood insurance come standard with homeowner insurance.

Fact: Standard homeowners insurance policies don’t typically cover damage caused by a flood or earthquake. Policy additions for natural disasters, like floods and earthquakes, can often be added to a policy, but if the coverage is not obtained before the event occurs your property will not be protected.

Myth: Color is a major factor in the cost of my auto insurance.

Fact: Contrary to popular belief, having a red vehicle does not automatically mean your auto insurance will cost more. However, there are several other factors to keep in mind when car shopping, because all of these things could affect the price you pay to insure your car, such as car make, body type, age of your vehicle and the car’s sticker price.

Learn more about the right coverage for your unique needs by contacting an OKFB agent near you.