At Mountain Plains Agency Inc., we know how vital heavy machinery is to running a successful farm operation. When an expensive tractor or combine suddenly breaks down, it can bring work to a grinding halt and leave you with costly repairs. That’s why properly insuring your farm equipment is essential to safeguard your investments from unforeseen damage or loss.

In this comprehensive guide, we’ll explain what farm equipment insurance is, what it covers, how it works, cost factors and tips for getting the best rates. With the insight from Mountain Plains Agency Inc., you can make informed decisions to protect your farm’s most critical assets.

Introduction to Farm Equipment Insurance

Farm equipment insurance provides protection against financial losses if your tractors, planters, haying tools, irrigation systems or other machinery are damaged or destroyed. It covers the cost to repair or replace the equipment after covered incidents.

Policies can include:

• Comprehensive coverage for damage from theft, vandalism, fire, natural disasters and more.
• Collision coverage for damage your equipment causes or receives when upset or involved in accidents.
• Replacement at actual cash value or full replacement cost depending on the policy.

Properly insuring equipment against all risk factors gives peace of mind that your farm can keep operating if the unexpected occurs.

Types of Farm Equipment Typically Insured

Farm equipment eligible for insurance includes any vehicles or machinery used for farming operations, such as:

• Tractors, combines, sprayers, and harvesters.
• Planters, seeders, cultivators, plows, and tillage implements.
• Haying tools like mowers, rakes, balers, and cutters.
• Irrigation systems including pivot and wheel systems, pumps, motors, and distribution pipelines.
• Specialized equipment like cotton pickers, potato harvesters, sugar beet lifters, grain carts, and more.
• Shop tools, power washers, generators, welders, and other ancillary equipment.
• Attachments like loaders, disks, blades, lifts, and drills that enable primary equipment functionality.

Heavily used, expensive equipment on which your livelihood depends deserves sufficient insurance protection in case it’s suddenly out of commission.

Coverage Options for Farm Equipment

Farm equipment can be insured in multiple ways depending on your needs and budget:

• Comprehensive coverage insures against damage or loss from a broad range of causes including fire, weather events, vandalism, theft, collisions and overturns. This is the broadest protection.
• Named Peril policies cover only specific causes of loss outlined in the policy, such as fire, flooding, theft, etc. This is a more limited form of protection.
• Actual Cash Value pays the depreciated value of damaged equipment accounting for age and wear. This often will not cover the full replacement cost.
• Replacement Cost coverage pays the amount needed to replace with similar kind and quality, without deducting for depreciation. This is the best option for maximizing recovery.

It’s wise to consult a qualified agent at Mountain Plains Agency Inc. to ensure you get the right equipment coverage at appropriate values.

Common Causes of Farm Equipment Damage

Some of the most common risks that can lead to costly repairs include:

• Accidents and collisions – Loss of control, rollovers, and collisions during transport or operation in the fields.
• Fire – Electrical faults, fuel ignition, farming-related fires that spread to equipment.
• Weather events – Hail, lightning strikes, flood damage, tornadoes or hurricanes.
• Theft and vandalism – The high value of equipment makes it an attractive target.
• Operator errors – Damage caused by inexperienced or insufficiently trained equipment operators.
• Mechanical/electrical breakdowns – Parts failures, wiring issues, or general wear and tear over time.
• Foreign objects – Stones, debris, fencing, irrigation components accidentally fed into equipment.

With so many variables that can instantly incapacitate critical machinery, make sure your insurance protection is sufficient.

Factors That Influence Farm Equipment Insurance Costs

As with any insurance, several factors determine your farm equipment premiums:

• The type, value and age of insured equipment. More expensive equipment costs more to insure.
• Selected coverage and deductible. Higher coverage levels and lower deductibles raise premiums.
• Claims history and risk factors. Frequent past claims may increase costs.
• Location and storage. Secured indoor parking lowers risk.
• Discounts like protective devices, multi-policy bundling and prior insurance can reduce premiums.
• Operator skills and safety training completion may qualify for discounts in some cases.

Generally equipment over 10-15 years old costs less to insure due to lower replacement value. Get quotes for both actual cash value and replacement cost coverage to make the best choice.

Tips for Getting the Lowest Premiums

Here are some tips from Mountain Plains Agency Inc. to minimize your equipment insurance costs:

• Shop quotes from multiple insurers. Rates can vary widely between companies.
• Take advantage of any available discounts you qualify for. Ask us what’s offered.
• Consider accepting higher deductibles to lower premiums if you can manage out-of-pocket costs in a claim.
• Implement secure storage and theft-deterrence measures to reduce risk. Fencing, gates, locks and lighting help.
• Maintain detailed equipment maintenance logs and operator training records to demonstrate responsible practices to insurers.
• Avoid unnecessary claims for minor damage. Smaller issues may be cheaper to pay yourself vs. risking premium hikes.

Filing a Claim for Farm Equipment Damage

If your equipment suffers a covered loss, here are key steps for filing your farm insurance claim:

• Document damage immediately with photos and written details of what occurred. Compile any other supporting evidence like police or weather reports.
• Promptly call your agent at Mountain Plains Agency Inc. to report the incident and start your claim. Provide all collected documentation.
• An adjuster will inspect the equipment and assess the repair/replacement costs covered by the policy.
• For total losses, the insurer will determine actual cash value or agreed replacement value based on your coverage.
• Keep accurate records of all equipment ownership, value and maintenance. This speeds verification and settlement.
• Work with your adjuster to negotiate a fair damage settlement up to your policy limits and get your equipment back in working order.

Thorough documentation and prompt reporting are vital for smooth claim resolution and getting your farm productivity back on track.

Risk Management Tips to Avoid Equipment Losses

While insurance protects against equipment losses, prevention is the best policy when possible:

• Store equipment in secured buildings with fire alarms/suppression systems and video surveillance if feasible.
• Maintain detailed records of preventative maintenance, repairs and standard upkeep.
• Establish equipment operation protocols and train workers thoroughly on proper use. Document all training completed.
• Perform routine walk-around inspections before each equipment use to identify any issues needing attention.
• Clean equipment after each use to prevent buildup of flammable materials. Remove accumulated crop debris frequently.
• Have fire extinguishers, first aid kits and other emergency gear accessible.
• When transporting equipment, follow safe trailering practices and confirm all restraints and tie-downs are secure.

A proactive stance enhances safety, helps avoid claims and may earn premium discounts for your operation.

Properly insuring valuable farm machinery is complex, but the agents at Mountain Plains Agency Inc. have the expertise to evaluate your risk, provide tailored recommendations and offer solutions that give you peace of mind as you face each season. Contact us today to discuss your farm equipment protection needs.

Equipment Insurance FAQs

For more personalized guidance on safeguarding your farm investments, connect with our agents at Mountain Plains Agency Inc. Here are some frequent questions we can help answer:

Q: Does my farmowners policy include equipment coverage?

A: Farmowners provide limited coverage but equipment policies offer more complete protection. We recommend adding dedicated equipment insurance.

Q: Should I insure leased or financed equipment separately?

A: Yes, leased/financed equipment typically requires its own insurance policy meeting specific requirements. We’ll ensure you meet those needs.

Q: What qualifies as a total loss claim for equipment?

A: If repair costs exceed a high percentage of the equipment’s value (often 70-80%), the insurer may deem it a total loss and provide the applicable settlement.

Q: Does my insurer offer any discounts for equipment?

A: Yes, many insurers offer discounts for protective devices, experience, multi-policy bundling, and safety practices. Ask us what discounts you may qualify for.