Factors That Impact Your Farm Insurance Cost 

Farm insurance is a collection of policies designed to help agricultural businesses mitigate financial stress caused by various incidents and perils. Understanding the factors that drive farm insurance costs can help you select policies suited to your operations and avoid surprises like sudden premium increases or inadequate coverage.

Factors That Affect Farm Insurance Premiums

Insurers consider many factors when determining farm insurance premiums. Common ones include the following:

• Type and size of farm operations—The nature of your farm can significantly impact your insurance costs. Larger farms or those with diverse operations may require broader coverage, which can result in increased premiums.
• Property value and equipment—The value of your farm buildings, machinery and equipment is a significant consideration. Higher-value assets typically mean higher insurance costs, as more coverage is needed to guard against potential losses.
• Livestock and crop coverage—If your farm includes livestock or high-value crops, your insurance needs may be more complex. Coverage for animals and specialty crops can increase your premium, especially if you require coverage for specific risks, such as disease or severe weather events.
• Location and environmental risks—New Jersey farms face distinct risks like coastal storms and winter weather. The location of your property, proximity to flood zones and local crime rates can all influence your insurance rates.
• Claims history—A history of frequent or large claims may result in higher premiums. Insurers view past claims as an indicator of future risk, so maintaining a safe operation can help keep your costs down.
• Safety measures and risk management—Implementing safety protocols, maintaining equipment and investing in risk management practices can positively impact your insurance costs. Insurers may offer discounts for farms that demonstrate proactive safety efforts.

Get Started

M.L. Ruberton Agency is committed to helping New Jersey farmers secure farm insurance. Our team can explain your options, help you compare policies and identify ways to manage costs without sacrificing essential coverage. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.