Farm insurance?

[Jim Timber]

With the imminent onset of logging happening on my property, I'm starting to look at insurance options for the parcel since it won't be covered under my personal umbrella attached to my homeowners policy as vacant land if I'm operating as a business venture off it.

What are some things I should be aware of when setting up a farm policy, and what kind of rates will I be looking at?

My agent had to defer to underwriting before being able to give me any info when we broached the subject today while I was inquiring about how to accurately insure my soon-to-be dump truck, which will be for personal use, but stored on the farm.

I know a couple of you guys are agents, so maybe we could air this out for everyone's benefit when looking at protecting our asse(t)s. :)

One thing in particular that'd be nice to talk about is what kind of risk and coverage would be needed for "load your own" firewood sales? The Mrs. seems to be freaked out about that idea, when someone pulling a muscle because they tossed too much wood is hardly something you could blame me for.

 

[SD51555]

Doesn't mean they won't try.

Got an infection from a splinter. Missed work. Now the guy's got partial numbness...

 

[Jim Timber]

Yeah, there's crooks all over. I guess I'd rather be covered and hope for the best than not try.

 

[bwoods11]

Logging and firewood sales would more than likely trigger a commercial policy. This can be very expensive and sometimes not worth it. If you hire a logger to come in, he will have to carry the insurance. If you do the cutting yourself and then sell to consumers, well that is whole different situation.

The last time I checked on coverage for a local logger, the premium was high and if you do not have the new mechanical equipment, it was almost impossible to get.

I hope that helps?

 

[Jim Timber]

I was thinking I'd have piles of a cord or 2, in a designated area (the turn out just inside the swamp) ready to go for people who made appointments to get it. I'd be present and would probably need to have cameras to CMA. A big chunk of the expense in firewood is delivering it.

Another option would be to dump said piles along the road frontage, that way they'd be on the public ROW and not my property when loading. In a month or so, I should have a 5yd dump truck. :)

Tree farming has to be different than logging. Logging has multiple people in the woods and you're operating on someone else's property. I'm just a guy working in my yard.

 

[bwoods11]

I would say firewood sales would be different than logging yes. Either way, my guess is the premium will be high. You can always just do it and not tell the insurance company, but they may not pay out on the claim if they determine that it was more than a one time deal.

 

[Jim Timber]

Business use of my dump truck ends up being $60/yr more for liability and only needs to be added if 51% of the annual mileage is business related.

She's still checking on a farm policy. Comp with 250/free glass is 52/yr. Liability will be 500/yr, but I can suspend that at will when not using it on the road.