Buying a home with land for farming, extensive gardening, or leasing is more popular than ever. If you have a property for hobby farming, or are interested in entering the agribusiness scene, there are essential insurance considerations to keep in mind. When a homeowner makes any income from their primary residence — whether through farming, short-term rentals, leasing land, selling crops or goods, or hosting the public on their property — there is additional liability that a standard homeowner’s policy typically doesn’t cover. However, since you may be operating from your home rather than as a full commercial operation, a commercial policy may not be a perfect fit either. As your trusted insurance advisor, we want to help keep your hobby farm protected by providing you with customized, optimal coverage for your needs. 

Here are key insurance considerations for hobby farms:

• Coverage Type: Depending on the size and activities, a hobby farm might initially fall under a homeowner’s insurance policy. However, if the farm grows or starts generating income, additional coverage—such as hobby farm insurance or small farm insurance—may be required.
• Product Liability: If you plan to sell produce or other goods from your hobby farm, product liability insurance should be considered to protect against claims related to your products.
• Equipment Coverage: For farms with heavy-duty or expensive equipment, additional insurance may be necessary to cover these valuable assets.
• Animals on the Farm: Even if farm animals aren’t generating income, having animals on the property could necessitate a different type of insurance. Do you have farm animals? This is worth discussing with your insurance advisor to make sure you have the right coverage.
• Equine Insurance vs Hobby Farm Insurance: if you have equine on your property, you will probably want to consider equine insurance. Hobby farm insurance may cover a horse or two for personal use, but equine insurance will give you the additional coverage you need for commercial exposure when it comes to horse boarding, having a riding arena, or showing horses. 
• Cost Factors: Hobby farm insurance costs can vary based on several factors, including acreage, property structures, production scale, equipment, and the presence of any workers on-site.
• Discount Opportunities: Multi-policy discounts, safety measures taken on the farm, a claim-free history, and loyalty to a particular carrier over time can sometimes lower the cost of hobby farm insurance.

Customizable coverage is crucial for hobby farms, as each situation is unique. As your trusted, independent insurance advisor, we can search across markets to find a policy tailored to your specific needs. If you are interested in hobby farming, we would be happy to simplify the insurance process, ensuring they have comprehensive coverage for peace of mind.