A Farmowner policy is a combination of a Homeowner and Business policy. The coverage for the house and liability are covered much the same way as a normal Homeowner policy (for more information on Homeowner policies, please click HERE). Any barns, implement sheds, or grain bins are also listed on the policy with the same type of coverage, but are listed individually.
Machinery, livestock, grain, hay or other farm personal property can be insured on an individual schedule, or could be listed on a blanket instead. An individual schedule is best when there are only a few items to insure, largely due to the difference in premium. A blanket is best for larger inventories, and insures each individual item for its actual cash value at the time of a loss. For more information on the difference between Replacement Cost and Actual Cash Value, click the link below.