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landowner liability coverage

arm

arm

Leg
Curious what you guys do for insurance on your farms. Example: closing on 100 acres where I will rent out some crop row, no buildings on the property whatsoever. Extend liability coverage from my home policy or set up a LLC? Want to make sure I'm protected from any stupid accident that is bound to happen; trespassers breaking a leg or farmer falling off his tractor.

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We carry Grinnell Mutual "farm liability insurance" on our rec/CRP grounds. It's not too pricey. Thank God we've not ever needed it, but I sleep well having it. I'm sure there are many others that offer a similar policy.
 
Liab

arm said:
Curious what you guys do for insurance on your farms. Example: closing on 100 acres where I will rent out some crop row, no buildings on the property whatsoever. Extend liability coverage from my home policy or set up a LLC? Want to make sure I'm protected from any stupid accident that is bound to happen; trespassers breaking a leg or farmer falling off his tractor.

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You can extend it off your homeowners if you prefer. Cost is low, make sure you have a good liability limit, not the bare minimum of $100,000 personal liability and $1,000 medical payments. I would suggest $500,000 with $5,000 medical payments or more.

Another options is a separate policy with the legal description of the 100 acres. You can always put the land in an LLC, but make sure you understand the tax situation first.

(I own an insurance agency)
 
Thanks for the point on min coverage. The LLC sounds fun but is more spendy and probably needs insurance from that angle anyways. The extension from my home policy or the separate ag policy was the direction I was headed...but sounded so cheap that it didn't sound right ($100-200 a year)

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Your choice should protect at level to insure your net worth. If the amount of equity in this property is low relative to other assets than an LLC . may be a better choice with a small insurance policy. An LLC does complicate things with fsa and other agency's but can be managed if you are organized.
 
arm said:
Thanks for the point on min coverage. The LLC sounds fun but is more spendy and probably needs insurance from that angle anyways. The extension from my home policy or the separate ag policy was the direction I was headed...but sounded so cheap that it didn't sound right ($100-200 a year) Sent from my XT1030 using IW
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Talk to your agent about adding a personal umbrella.
 
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