What Does Farm Insurance Actually Cover? A Guide for Lapeer County Farmers
By Madison Schapman · · 3 min read
If you’re farming in Lapeer County, you already know that a bad season — a hailstorm, an equipment breakdown, a barn fire — can set an operation back years. But a lot of farm owners we talk to are either underinsured or carrying coverage that doesn’t actually match what they own and operate today.
Here’s a plain-language breakdown of what farm insurance covers, what it doesn’t, and what Lapeer County farmers in particular should be thinking about.
Farm insurance vs. homeowners’ insurance
This is the most common gap we see. If you live on your property and also farm it, a standard homeowner’s policy won’t cover your farming operations. Homeowners policies are designed for personal residences — they exclude business activities, livestock, and most farm equipment.
A farm insurance policy (sometimes called a farm owners policy) is specifically built to cover both your home and your farming operation under one policy. It’s one of the most cost-effective ways to make sure nothing falls through the cracks.
What a farm policy typically covers
Dwelling and structures — Your home, plus farm buildings like barns, grain bins, machine sheds, and outbuildings. Coverage is for damage from fire, wind, hail, lightning, and other covered perils.
Farm personal property — This includes tractors, combines, tillage equipment, planting equipment, and other machinery. Equipment values change over time — if you’ve added or upgraded equipment and haven’t updated your policy, you may be carrying less coverage than you think.
Livestock — Cattle, horses, hogs, and other animals can be covered for death caused by covered perils. Coverage options vary by carrier, so it’s worth reviewing exactly what’s included.
Grain and feed — Stored grain and purchased feed can be covered, typically up to a set limit. If you’re storing significant quantities post-harvest, make sure your limits reflect current inventory values.
Liability — If someone is injured on your property — a neighbor, a hired hand, a customer at a farm stand — farm liability coverage protects you. This is one area where a lot of farm owners are underinsured without realizing it.
What’s often NOT covered (and should be added separately)
- Farm machinery breakdown — standard farm policies cover damage to equipment but not mechanical or electrical breakdown. A separate equipment breakdown endorsement covers that.
- Hired and non-owned auto — if employees drive personal vehicles for farm business, you may have exposure that isn’t covered under a standard auto or farm policy.
- Agritourism — if you host pumpkin patches, corn mazes, farm dinners, or any public events, you likely need additional liability coverage. Standard farm policies often exclude or limit this.
- Workers’ compensation — Michigan has specific rules about farm labor and workers’ comp. If you have employees, this deserves a separate conversation.
A note for Lapeer County specifically
Our area has a mix of row crop operations, hobby farms, livestock operations, and everything in between. Not every farm policy is built for every type of operation — a carrier that’s great for a 500-acre cash grain farm may not be the right fit for a diversified 40-acre family farm with a farm stand.
As an independent agency, we work with multiple carriers, which means we can shop the market to find the right coverage for your specific operation — not just the closest thing available from one company.
The bottom line
Farm insurance isn’t one-size-fits-all, and the cost of being underinsured is a lot higher than the cost of a policy review. If you haven’t had your farm coverage looked at in the last couple of years, it’s worth a conversation — especially if you’ve added land, equipment, or livestock since your last renewal.
Give us a call at (810) 305-2794 or email madison@schapmaninsurance.com. We’re local, we understand farming, and we’ll give you a straight answer.
Schapman Insurance Services is an independent insurance agency located in Dryden, Michigan, serving Lapeer County and surrounding communities.