Insurance

Discussion in 'Homesteading Questions' started by papaw, Oct 15, 2005.

  1. papaw

    papaw Well-Known Member

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    I was wondering what insurance people who live off the land have? What are your thoughts on insurance for the farmer or the homesteader? How much do you pay and do you have any good links that provide information on being somewhat "self insured"?
     
  2. Mid Tn Mama

    Mid Tn Mama Well-Known Member Supporter

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    Insurance for farms is higher because of the greater potential for serious injury. That's all I know. You must buy more insurance if you have others work on the farm or let others farm part of it (or houses animals on your property).
     

  3. ace admirer

    ace admirer Well-Known Member Supporter

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    can't suggest one brand over another. insurance for each buiding, each article of machinery under each building, libility insurance for people that wonder onto your land and want a piece of your pie because they twisted their ankle. do you have ponds? thats what insurance companies call attractive nuisance gonna cost you a little more. you let four wheelers or horse riders ride on your land...not if you want inexpensive insurance. do you have lockable gates on all your roads into your land....gonna need that. have you posted your land.....got to do that. the libility will turn you into a person you don't want to be...a crabby old guy that doesn't want people on his land.. but thats probably what your insurance company will require..

    I speak from experience....we've had the Worst experience...you need the insurance if you have people around.
     
  4. Terre d'Esprit

    Terre d'Esprit Boer-ing Mom

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    Get a quote from Farm Bureau.
     
  5. Alex

    Alex Well-Known Member

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    Vancouver, and Moberly Lake, BC, Canada
    Our excellent Medical Insurance, for everything, is $124 a month for two, which is $106 USD for two. If you make less than $24,000 a year, you pay nothing. Say what you like, it's great, and all inclusive. What a great Medical Insurnace system Canada has.


    There are other insurances in addition to Medical Insurance;

    Dental Insurance -- there's a good one for self insurance, IMHO;
    Then you need Worker's Compensation Insurance, based on the type of business you operate, engineering is .4% of payroll, farming more, etc.;
    You need a fire, theft, and general liability insurance;
    Do you need life insurance?
    Do you need income replacement, other than Worker's Compensation, if you get sick, or have a real bad injury?;
    Crop Insurance?;
    Herd Insurance?

    And so on . . . whatever you can worry about you can probably insure.

    Alex
     
  6. Quint

    Quint Well-Known Member

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    I've got a farm and ranch policy with a 2 million dollar umbrella liability coverage. Pretty reasonably priced and a absolute necessity if you have assets to protect.
     
  7. palani

    palani Well-Known Member

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    papaw posted

    Insurance is a concept of maritime law, you know, as in water and oceans and so forth. People who live off the land have no need of insurance.

    I know a lot of people have been programmed to think differently but under Common Law the concept of entering into a contract where you provide substance and get nothing in exchange except a promise doesn't exist. Maritime shippers felt they had the need to distribute risk associated with sailing ships around the world.
     
  8. Charleen

    Charleen www.HarperHillFarm.com Supporter

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    We have Farm Family Insurance. http://www.farmfamily.com/

    When my husband and I decided to switch to them for coverage, we were very surprised at how much was NOT covered by our previous insurance co. We were dealing with a company that was NOT familiar with farms or their specific needs & situations.
    ie- if one of our goats got loose and ran in the road and got hit by a car, we were liable. If someone had an accident in front of our home while buying a dozen eggs, we were liable.

    Now, with Farm Family Insurance, we have "Farm Package" coverage which insures us for the above listed incidents plus many others, such as accidental shooting of one of our animals (tresspassing hunter). Our home, each barn & outbuilding is insured and all our tractors and equipment are now covered. Horse trailer and dump truck are on their own commercial policy (WAY, WAY cheaper than what we had before). Personal autos are on their own policy also.
     
  9. caballoviejo

    caballoviejo Well-Known Member

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    If it were'nt for insurance, you would'nt need it.
     
  10. papaw

    papaw Well-Known Member

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    Location:
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    Thanks,
    Good links were what I was looking for. I know one can buy insurance for "anything" , but I was hoping for some discussion on what everyone had and what they thought someone "needed" .... Really, I was thinking HEALTH insurance when I started, but after reading this, I see I need to learn more about farm insurance too ....
    Thanks all for your posts.
    P.S.
    Alex,
    You REALLY make a northern move sound great! LOL ... just can't cut all the roots I have here.
     
  11. cchapman84

    cchapman84 Well-Known Member

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    As a former insurance agent (not licensed anymore, but was not even a year ago), I'd say minimum, make sure you have excellent homeowners coverage. As far as self-insurance goes, get a policy with a high deductible ($1,000). Make sure that your home is insured to full value, otherwise you can get yourself in a real pinch with a partial loss (like, when your kitchen burns but the rest of the house is fine and the insurance company decides it's best to just fix the kitchen). If you're only insured to say, 70% of value, then your insurance company is only going to pay for 70% of the repairs, minus your deductible. Make sure your liability coverage is at least $300,000.

    Get some sort of catastrophic-type health insurance. Something with a very high deductible ($5,000-$20,000). It won't cover things like doctor visits or prescriptions, but it would cover it if there was a major injury or illness (cancer, surgery, etc.). These are generally a lot cheaper than regular health insurance.

    If you're self-employed, talk to your agent about business insurance. It varies a lot based on what type of business you have.

    If you have kids, or if one spouse makes significantly more than the other, look into term life insurance. It's cheaper than whole life, and depending on your age and if you smoke, you might be able to get a $100,000-$250,000 policy for 20 years for around $20.00/month. Make sure that the payment will stay the same for the entire length of the policy, some will increase after 5 or 10 years, and the increase is usually substantial.

    Depending on work/hobbies, you might want accident insurance to cover loss of income if you're injured.

    Don't forget auto insurance. Carry the highest liability you can afford. I see a lot of people who only carry state minimums, and I can tell you now, if you get in a serious accident, that insurance isn't going to do you any good. Medical bills alone from a serious accident can run over $100,000. Property damage can be high too (especially if you hit a commercial vehicle, like a tractor trailer carry expensive cargo). Even most newer trucks and SUV's are valued at over $50,000 (state minimum property coverage is often only $25,000). If you don't have enough insurance, you'll likely loose your house and everything else you've worked so hard for.

    Biggest thing--shop around! Figure out every type of insurance you're going to want/need to have, and get a quote from every insurance agent in your area. We have Geico for auto (saved us about $500/year), but a smaller regional company for homeowners. Often if you have more than one policy with the same company, they will give you a discount. Make sure you ask about this.

    Hope this was helpful.
     
  12. papaw

    papaw Well-Known Member

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    Location:
    Alabama
    Thanks for all the replies and PM's ... any other links or thoughts would be wonderful. Farm owners, home owners and health insurance ... any thoughts at all ?????
    There's a lot here that I hadn't thought of.
     
  13. BCR

    BCR Well-Known Member

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    Insurance is a gamble. What kind of gambling man are you?

    We have homeowners and insurance for my businees where clients visit plus we have NASE.org health insurance for us both.