3 Important Facts To Consider About Homeowner's Insurance As A Homesteader

About Me
Insurance 101: Tips and Tricks to Choosing the Right Policy

Since my parents always added me to their auto insurance policy when I was a teenager, I never learned how to make educated insurance policy decisions. When I moved out of my parents house at the age of 25 and it was time to get my own policy, I was overwhelmed with all of the decisions I had to make. Thankfully, my parents were eager to teach me what each insurance coverage option meant and what the best choices were for me. I learned a lot about insurance during this experience, and I am eager to share what I learned with others on my new blog. I also plan to include many tips on choosing health and homeowners insurance policies, so check back often if you want to learn a little more about insurance!


3 Important Facts To Consider About Homeowner's Insurance As A Homesteader

7 November 2017
 Categories: Insurance, Blog

Homesteading is defined as living a life of self-sufficiency, or in other words, you use what you have available to produce what you need to get by. For someone who is living the homesteading lifestyle on their home property, the rewards are great, but there are also some special considerations involved. Specifically, your homeowner's insurance can be affected by your homesteading activities. Too many homesteaders discover this fact after something has happened and they find out the incident will not be covered because of "farm incidental" clauses in their policy. Here is a look at a few things you need to know about homeowner's insurance as a homesteader. 

Regular homeowner's insurance may not cover farm equipment. 

Homesteading can involve everything from plowing the ground and growing crops to raising livestock. Therefore, you are likely to pick up a few pieces of farm equipment as a homesteader. Whether it is a tractor, plow, or electric fence system, it is best to consult with your insurer as you add these items to your farm. Your basic policy may not cover equipment that you have on your property for farm purposes, and if it does, it could be a conservative amount that will be far from enough to cover its actual value if something happens. 

Regular homeowner's insurance may not cover farming related incidents. 

Having a farm of any size on your home property means that there are things going on here that may not otherwise happen on other properties. Therefore, your insurer does need to know that you are a homesteader. Otherwise, if something happens purely because of the farm operation going on at your home, the insurance may not cover damages. So, for example, if your cow gets loose and charges through your garage door, you may be left paying for repairs on your own. 

Farming for profit with your homestead makes a huge difference with insurance. 

The moment that you make a profit with something on your homestead, it is time to go over your homeowner's insurance with an agent. Many home insurance companies have specific guidelines against providing coverage for hobby farmers if they are making a profit of any kind. Once a profit is made, you go from being a hobby farmer to a business farmer, which means your homeowner's insurance should change. Therefore, even if you make a profit selling extra veggies at harvest time, it is best to redo your insurance policy. 

Check out websites like http://olynorthwest.com/ for more information.