Hobby Farm Insurance Ontario

Hobby Farm Insurance Ontario

Hobby farmers can care for the crops and animals that they enjoy being around and working in a small space rather than being driven by market fluctuations and having to cover acres of land. This allows hobby farmers' work to come from a place of passion, as they enjoy allowing them to let their farm be a source of joy. However, this still comes with risk.

 Hobby farm insurance allows you to have peace of mind, knowing that even if the worst happens, your favourite hobby won't become a source of stress.

What Is Hobby Farm Insurance?

Hobby farm insurance is a layer of protection for your farm operations that protects you from the many dangers involved with small-scale farming. This is partially due to the fact that home insurance policies might not cover the acreage required for a hobby farm. 

There are also many dangers that won’t be covered by most traditional homeowners' policies by default. For example, maybe a shed as well as all of its contents are damaged or destroyed. Damage to your animals’ pens,  feeding devices, crops, or anything else can impact your yield for the year. Hobby farm insurance protects you financially against all of these and more, allowing you to focus on growing and maintaining your farm without worrying about it causing you financial hardship.

Who Needs Hobby Farm Insurance In Ontario?

Anyone who runs a small farm for recreational purposes could use the protection provided by hobby farm insurance. Many types of animals, including pigs and cattle, can deal damage that you might be responsible for if they escape. Your crops could also be damaged by something outside of your control, or one of your pens or other outbuildings could be damaged by the elements. Any of these events may be considered covered perils if you have hobby farm insurance. If this happens, there would be no need for you to worry, as your coverage would prevent you from having to pay out of pocket for any of these events.

What's The Difference Between A Hobby Farm And A Commercial Farm?

It is understandable not to know the difference between a hobby farm and a commercial farm. This is especially true in a world where so many people are monetizing their past time as part of a side hustle; the line between hobby and business is getting increasingly blurred. Luckily, there are rules for this to help clarify the difference.

The first rule is that a hobby farm can not have employees working on it. There is also the issue of size, as a hobby farm can't exceed specific sizes. Some insurance companies will only count a property as a hobby farm if it is less than 10 acres. Others are more generous, allowing hobby farms to get as large as 50 acres without it counting as a commercial farm. There are also differences based on income generated, livestock kept, and machinery used. A general guideline is that a commercial farm is expected to generate no or very little income. In contrast, a commercial farm is expected to be a primary income, but the details vary between insurance companies. If you exceed the amount your insurance company limits you to, we instead recommend you get a more standard farm insurance policy.

These amounts do change based on the insurance company you are with, so it's best that you consult your Morison Insurance broker to get the coverage solutions that work for you.

What Does Hobby Farm Insurance Cover?

Hobby farm insurance is a specialized coverage that covers you and your farm for a wide variety of perils up to your policy limits. You have the choice between basic coverage, which protects you against the perils specifically named in the policy, and comprehensive coverage, which provides additional protection against a much wider variety of risks, only excluding a small number. Basic protection will have a lower cost, but comprehensive coverage will mean your plan includes a broader variety of covered perils. The choice is yours, and it will impact your level of coverage. Each of these can also be given some add-ons allowing for customizable insurance coverage. Some of the most common coverages included are below.

Please note that additional insurance options not listed below allow for additional coverage depending on your specific needs. Some farms may require additional specialized coverage for the livestock they have, while others may need some liability coverage. Please speak with your Morison Insurance broker to get a customized coverage plan suited to your needs.

Outbuilding Insurance

Outbuilding insurance can be added to your home insurance policy and is designed to financially protect detached structures on your property from crippling damage. Outbuildings could include places where you keep your animals safe and fed, sheds where you keep the many tools that you need to maintain your farm and keep it in excellent condition, and even a detached garage would all be covered with this type of protection, meaning that all of the external buildings required for you to run your hobby farm will be protected.

Contents Insurance

While outbuilding insurance protects the structures themselves, contents insurance, also known as tools and equipment coverage, is designed to protect the valuables you store inside said outbuildings. This protects tools and equipment, from anything as simple as a traditional rake or shovel to more complex, heavier equipment such as a rototiller. Having this level of protection can be extremely valuable, given how quickly the cost of all of these items can add up.

Equipment Breakdown Coverage

As the name suggests, equipment breakdown insurance covers the cost of your equipment breaking. One of the wonders of modern farming is how many great tools you can use to assist in watering or fertilizing your crops, as well as feeding your animals. However, these pieces of equipment are not indestructible, and sometimes they break down suddenly, even if they are perfectly maintained. Having equipment coverage as part of your hobby farm insurance policy means that you will have proper coverage if such an event occurs. Please note, however, that this type of coverage will not cover damage over time, such as wear and tear, nor will it cover damage the policyholder does intentionally.

How Much Does Hobby Farm Insurance Cost In Ontario?

There is no set cost for hobby farm insurance in Ontario. Each hobby farm owner will pay a different amount for hobby farm insurance due to the fact that each farm will face different risks due to other farming activities, which opens them up to different risks. Please also note that different insurance companies will likely provide the same person with varying hobby farm insurance quotes. Some of the factors that can impact the cost of hobby farm insurance are below:

• The level of coverage desired, including all optional coverages desired and your coverage limits
• Any additional optional coverages the policyholder desires
• The size of the hobby farm
• The amount and type of animals and crops on the farm
• The location of the hobby farm
• The claims history of the policyholder
• Any safety precautions taken by the policyholder
• Any equipment used and what it is used for
• Any property used, such as pens and sheds

Please note that this is not a complete list of factors. If you would like to know more about which factors could potentially impact the cost of your hobby farm insurance and to get an accurate hobby farm insurance quote, it is best that you speak with your Morison Insurance broker, and they will be happy to assist you.

How Can I Lower The Cost Of Hobby Farm Insurance?

It is understandable to want more affordable rates for your hobby farm insurance package. Although there are many factors outside of your control, there are also many within your control that can allow you to lower the cost of your hobby farm insurance quote. Some ways that you could lower it are below.

• Increase the size of your deductible
• Apply some workplace safety tips to your hobby farm
• Avoid making claims on small incidents to help keep your claims history clean

Please note that there are other things you can do to lower your hobby farm insurance quote. If you would like to know some of these tips, your Morison Insurance broker will be happy to provide them.

Where Can I Get Hobby Farm Insurance?

You can get hobby farm insurance from Morison Insurance. Morison Insurance is made up of a dedicated team of brokers who want to give our clients the best quotes possible on their insurance while also ensuring that our clients are paying competitive rates. We offer 5-star coverage and have been providing our clients with insurance solutions for over a century, with offices throughout Ontario. Please fill out the form below or call us at 1-800-463-8074 to get a hobby farm insurance quote or any other type of insurance.