Our priority is to make insurance simple for you. Farmers are already stretched thin and you need to know you have adequate coverage while not tying down a lot of your time. One way this is done with farm policies is by using blanket coverage.
Blanket Coverage
Also known as unscheduled coverage, provides an overall limit of coverage for all your inventory. This will include equipment, machinery, supplies, grain/feed, & livestock. By doing this, it makes it much easier on the farmers end as they only need to list their inventory and come up with an overall value amount.
Peak Season
Another great feature of using blanket coverage is by including peak season. This coverage allows you to be insured for a higher amount during harvest season. For example, a farmer has $2,000,000 of inventory throughout the year but by end of harvest, they have an additional $1,500,000 of grain stored. The farmer can insure an additional $1.5M ($3.5M total) from October to January, lower that amount to say $750,000 ($2.75M total) from February to April then drop back down to the $2M total coverage from May to September. The goal of insurance is to have adequate coverage at the most competitive rates. Peak season allows you to be fully covered while not having to pay for $3.5M of coverage the entire year.
A third way blanket coverage makes insurance simple is the fact you do not have to call your agent every time you add a piece of equipment. We recommend reviewing with your agent annually to update the blanket coverage and give them an updated list of your inventory. If you are insured for at least 80% of your total inventory throughout the year, then you are fully covered.
A fourth advantage of the blanket coverage is that it can provide a higher claim payment. For example, if you valued your tractor at $100,000 on a scheduled policy, that is the maximum you would receive. However, on a blanket policy if the replacement cost ends up being $110,000 then you would receive the full $110,000 to replace that tractor.
We highly recommend blanket coverage to make farmers’ lives simpler. If you do not currently have this coverage then give your agent a call today and discuss it with him.