With any insurance policy you start with a base farm policy;
The base insurance policy is like a “base model” for a new tractor. Different companies have some slightly different base models, based on what they include. Just like a tractor, some of the extras are included in the base model, others are add-ons.
Also realize there are different “base model” depending on your farming operation. If you have 100 acres of vegetables that you sell at a road side stand, you will have a different base model than a farmer with 1,000 acres of grain with a trucking operation. Once again, your Nationwide agent can help determine what’s best for your specific operation.
In its simplest form understand your insurance policy has 2 main categories:
Property-your tangible structures and belongings. Property coverages include: home & content, farm personal property & farm structures
Liability covers expenses you are legally liable to pay as a result of injury to another or another’s property
Within the Property coverage you have what we call:
•Cause of Loss: What you are covered for. (Very important you understand-There are different levels you can choose from) and they all have different price points and coverages.
•There are 3 options for your base insurance policy: Basic, Broad and Special
•Within each of the 3 options, your policy provides coverage for loss from only the particular causes that are listed in the policy as covered.
•For example, the basic level provides coverages for loss caused by…fire/lightning, explosion, etc.
•The Broad option includes all of Basic
•The special causes of loss provides coverage for loss from any cause except those that are specifically excluded.
Within both Property and Liability coverages, you have exclusions and endorsements.
All policies include exclusions.
•Exclusions: Specific risks that are excluded from being covered-they are spelled out in the exclusions section of every policy.
•Endorsements: An endorsement is something that changes your base policy. It may add, remove or change the scope of coverage. Endorsements can be used to help secure additional coverage and protection.
The best way to fully understand your coverage is to talk to your Nationwide agent. They will help you determine the best coverage for you and your farm customized it to fit the needs of his operation.