I have a small 5 acre farmette. I grow hay on the property. Haven’t sold any so at this point nothing commercial. When I bought the place and started building I didn’t really explore my options just told him my intent to do hay and build a house. Got a AmFam farm policy with builders risk.
Fast forward, house is done. Still not farming. There are fields that have hay in them. I stand to make 700-1300 if I let a neighbor bale the hate and sell it, I won’t be farming this year don’t have time. insurance is 3300 for the year and a homeowners policy is 1200 per the quote I got from usaa. So obviously I’d like to drop the farm policy.
I call AmFam office and agent is out so I’m dealing with one of staff. But she seems to be implying that dropping to a homeowners policy may not be an option as it is a farm and I intend to let neighbor cut and bale fields… commercial activity I guess. But spending an extra $2100 on insurance to make $7-1300 doesn’t make sense to me. So if I don’t let neighbor cut fields then I would qualify for a homeowners policy and have a net savings?
Am I missing something? My original goal was to just drop to homeowners insurance as I it’s expensive and I’m not a farmer… any sort of farming is an excuse to buy a tractor… not about the money.
Farm policy converting to homeowners only
byu/HawkfishCa inInsurance
Posted by HawkfishCa
4 Comments
Call someone else. That is a homeowners policy for 95% of the companies. Check where you have your autos first since you get some nice discounts or call a local broker to shop it around.
There used to be a “gentlemans farm” policy that would be homeowner policy that allows a few acres of agriculture like fruit, grapevine, horses.
Just call AmFam, or an insurance broker and inquire about “hobby farming” . Have them confirm with the carrier’s underwriters. Policies often will offer that kind of endorsement as long as you’re not pulling in more than $2,000.
If you have any farming exposure, this isn’t going to fall under a standard homeowners policy. It doesn’t matter how much the policies cost or how much you were hoping to make. It’s based on the level of risk.