It is a common assumption that insurance is unnecessary for a hobby farm if it is simply a hobby and doesn’t generate income. However, the reality is that farming is a dangerous activity, which often requires the use of dangerous equipment and animals that can be unpredictable, so insurance is essential.
The amount and type of cover that you need will depend on your farming activities. Some hobby farms may be covered under a homeowner’s insurance policy, but this is not always the case. If your farming activities are a small side business, or if your farm is a fully-fledged business, then you will probably need insurance.
What is Hobby Farm Insurance?
Hobby Farm Insurance differs from standard Farm Insurance because hobby farms are small-scale farms that operate primarily for pleasure rather than profit. Hobby Farm Insurance is a specialist insurance policy that covers the specific risks in this niche.
What Type of Insurance Will I Need for my Hobby Farm?
Choosing the right insurance cover can be complex. The exact type and amount of coverage that you need will depend on the specific circumstances on your farm, such as its size and what you use it for.
Typical Insurance Cover for a Hobby Farm may include:
- Building and Contents: Cover for owner occupied and tenanted dwellings, including reinstatement cover for buildings and contents following unexpected events such as fire, theft and water damage.
- Other Farm Buildings: Covering work buildings, silos and structures such as sheds and workshops. Contents of these buildings may also be covered.
- Farm Liability Insurance: Insurance for any personal injury and/or property damage to a 3rd party caused by your hobby farm operations.
- Farm Machinery and Motor Vehicles: Covering your business motor vehicles and the machinery used on your hobby farm.
- Farm Fencing: Insuring farm fencing from damage caused by extreme weather or fire or another disaster.
- Farm Business Interruption: Insurance for a loss of income following a claim for property damage.
Choosing the right hobby farm insurance cover can be confusing. An insurance broker can help you make sense of the available policies and recommend the best option for your hobby farm insurance needs.
The cost of your insurance is determined by a number of variables, including:
- The type of activities carried out on your farm
- The size of your farm
- The location of your farm
- The turnover of your business
- Your financial history
Speak to PSC Insurance Brokers for more information on insuring your hobby farm.
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.
