Looking for ranches for sale? Don’t forget this important detail
If you’re looking for ranches for sale in the West, you’ll need to consider several important details. Before you make a purchase, one of those details is insurance.
Insurance for farms and ranches is different from homeowners insurance. And, for some ranch owners, having one of each kind of insurance policy might be necessary. Regardless, knowing what’s covered and what’s not is vital as you consider potential ranches for sale.
Homeowners insurance vs. farm and ranch insurance
A homeowners insurance policy is fairly cut and dry. This simple policy is very common. Most of us have experience with this kind of insurance. Basically, it covers an owner’s actual home and the owner’s belongings.
Additional insurance for things like natural disasters, floods and fire can be added as policy enhancements. But, for the most part, a homeowner’s policy is pretty straightforward.
But, if you’re in the market for ranches for sale, farm and ranch insurance is something you should certainly investigate. And you should look into it before you make an offer on property. It differs from homeowner’s insurance in that it is meant to cover both personal property and belongings, as well as commercial interests associated with a farm or ranch.
For instance, a farm and ranch insurance policy could cover both your home and your ranch operation. Like homeowner’s insurance, it can cover personal liability should someone get hurt while on your ranch. But it will also likely cover your ranch’s outbuildings, your livestock and your working equipment.
What else can insurance cover on the ranch?
There are farm and ranch insurance policies that cover virtually every aspect of a ranch operation. So, if you’re looking for ranches for sale, take into account the breadth of the operation you’re considering and know that you may need to buy insurance for some activities you may not expect.
Like what, you might ask? Well, if you plan to use pesticides on any farm or ranch crops, you might buy insurance with a chemical drift clause. If you’re planning to own or breed horses, there is specific equine insurance. If you grow crops or raise livestock for market, you could very well need product liability insurance. The list goes on.
Do your research. It’s important.
Final word
Investors considering ranches for sale should look closely at each potential property and consider the farm and ranch insurance that will be needed to aptly cover a purchase. It’s not as simple as buying a homeowner’s policy or car insurance.
Your best bet, of course, is to work with a reputable and experienced ranch property broker. The right broker will be able to help you identify potential insurance coverage needs before you settle on one of the ranches for sale that you’re considering. A broker very likely has experience helping clients identify companies that sell farm and ranch insurance. They’ll also be able to help you determine if a rate you’ve been offered is competitive.
Regardless, farm and ranch insurance is absolutely necessary. Once you find the right ranch, your next step will be finding the right insurance policy.
