We’ve written before about the importance of insuring your homes and farm buildings to their current values, but it’s just as important for farmers and ranchers to also have their equipment insured to an adequate value. When making sure your equipment limit on your farm insurance policy is adequate, here are several things to consider.
Equipment values vary as the demand for used equipment ebbs and flows in your area of the country, as well as with the usage and maintenance performed on the equipment. Because of this fluctuation, the purchase price of the equipment may not be the current value. Without adjusting for this change in equipment markets, you could find yourself under-insured when a loss occurs.
Farm and ranch operations are also using more and more technology. The Nationwide Agribusiness AgriChoice farm policy can include coverage for Global Positioning System (GPS) equipment. If a piece of equipment has permanently attached GPS components, the value of these components needs should be included in the value of the equipment.
If GPS components are portable, such as a display that can move from unit to unit, these also should be included either as an individually scheduled farm personal property item or as part of your farm personal property blanket. GPS activation fees may also be associated with these items. The value of the activation fees should also be insured.
Keep in mind, the value of GPS components and their activation fees can increase the value of equipment quickly. Having these values accounted for in your insurance limits will help to make sure you aren’t surprised at the time of a loss and are able to get back to normal operations as quickly as possible.
Photo by Dave Liggett