How to Insure Your B.C. Hobby Farm

November 27, 2024

Whether you're raising chickens, growing organic vegetables, or keeping horses, it’s special to cultivate the land and care for animals on your B.C. hobby farm. While hobby farming is smaller in scale than a commercial farm, it still has risks and needs to be properly insured.

There are differences between hobby farm insurance and other types of coverage like homeowners or commercial farm insurance.

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Here’s what you need to know about insuring your hobby farm in British Columbia:

What is a hobby farm?

A hobby farm is a small-scale agricultural operation typically run for personal enjoyment rather than for profit. Unlike B.C.’s commercial farms, which are designed to generate income, hobby farms are often a secondary pursuit.

People get involved in hobby farming for a variety of reasons, such as:

• Growing their own food.
• Raising livestock for personal use.
• Enjoying rural life while maintaining a non-agricultural job.
• Participating in sustainable and organic farming practices.

While hobby farms may not be full-scale commercial operations, they still involve significant investments in land, animals, and equipment, which all need protection through hobby farm insurance coverage.

Why is hobby farm insurance important?

A common misconception is that hobby farms are automatically covered under a standard B.C. homeowner's insurance policy. That’s often not the case. Most homeowners' policies have limitations on coverage for farming activities, especially if the property generates any income, even on a small scale.

Hobby farm insurance is designed to fill this gap, providing coverage for the unique risks that come with farming, such as livestock liability, property damage to barns and outbuildings, and protection for farming equipment. It allows you to tailor coverage to the specific activities and assets on your hobby farm, ensuring you're adequately protected.

What does hobby farm insurance cover?

Hobby farm insurance offers a wide range of coverages, many of which go beyond the scope of a traditional homeowners' policy. Here are the key areas typically covered:

Dwelling and property

Much like a standard homeowner’s insurance policy, hobby farm insurance includes coverage for your home and personal property. This can protect you if your home is damaged by covered events such as fire, wind, or theft. Hobby farm insurance also extends to structures that aren't typically covered by homeowner policies, such as barns, stables, greenhouses, sheds, and silos. These additional structures are often integral to hobby farming and can represent significant financial investments.

Farm equipment

Farming equipment can be expensive, even on a small hobby farm. Whether it's a tractor, tiller, or fencing tools, you'll want coverage in case of damage, theft, or breakdown. Hobby farm insurance typically covers these items, so you won’t be left footing the bill for repairs or replacements.

Livestock

One of the most important aspects of hobby farm insurance is livestock coverage. Whether you have a small flock of chickens, a few dairy cows, or a couple of horses, losing an animal due to accident, illness, or predation can be emotionally and financially devastating. Hobby farm insurance often provides options for livestock coverage, including protection for accidents, injuries, theft, or natural disasters. Some policies may cover veterinary bills in certain situations.

Liability protection

Liability is one of the biggest concerns for British Columbia hobby farm owners. What happens if a visitor is injured on your property or if your livestock wanders onto a neighbor's land and causes damage? Hobby farm insurance includes liability coverage to protect you in these kinds of scenarios. This coverage can help pay for medical expenses, legal fees, and settlements if someone sues you after an accident involving your hobby farm activities.

Product liability

If you sell any products from your B.C. farm—whether it’s eggs, honey, vegetables, or hand-made crafts—you may also need product liability coverage. This type of insurance protects you if someone becomes ill or injured due to a product they purchased from your farm. Even if your farm isn't primarily a commercial enterprise, any sales can expose you to liability risks, making this coverage a smart addition to your policy.

How hobby farm insurance differs from homeowners and commercial farm insurance

Homeowners’ insurance: This covers your British Columbia home and personal belongings but often excludes or severely limits coverage for farming activities, livestock, and outbuildings like barns or sheds. If your hobby farm is a significant part of your lifestyle, homeowners’ insurance is likely not sufficient.

Commercial farm insurance: This is designed for large-scale operations that generate significant income from farming activities. While commercial farm insurance provides comprehensive coverage, it can be excessive and more expensive than needed for a small hobby farm.

Hobby farm insurance: This specialized policy provides more coverage than a standard homeowner’s policy but is less extensive (and typically less expensive) than full-scale commercial farm insurance. It’s designed for small-scale, non-commercial farming operations that generate little or no income from agricultural activities.

Factors affecting the cost of hobby farm insurance

Several factors will influence the cost of your hobby farm insurance policy. Understanding these variables can help you work with an insurance provider to tailor a policy that fits both your needs and budget.

Size and location of the farm

The size of your B.C. hobby farm and its location can significantly affect the cost of your insurance. Larger properties with more structures, animals, and equipment will need more extensive coverage. Additionally, rural areas with limited emergency services may lead to higher premiums.

Types of animals

The type and number of animals you keep can impact your insurance costs. For example, horses may require additional liability coverage due to their size and potential to cause injury, while small animals like chickens may have lower associated risks.

Farming activities

If you are doing potentially hazardous farming activities—such as operating heavy machinery, using chemicals, or maintaining beehives—you may face higher premiums. Conversely, low-risk activities like vegetable gardening might come with lower insurance costs.

Income from the farm

If you generate income from your hobby farm—whether from selling produce, hosting events, or offering riding lessons—your insurance premiums may increase. Any activities that blur the line between a hobby and a business will likely require more coverage.

Finding the right hobby farm insurance

Now that you understand the importance of hobby farm insurance and what it covers, the next step is finding the right policy. Not all insurance companies offer hobby farm insurance, so it’s important to work with a provider that specializes in agricultural insurance and understands the unique risks associated with hobby farming.

When speaking with a farm insurance expert, be prepared to provide details about:

• The size your property.
• The types and numbers of animals you have.
• Ay structures beyond your home (barns, sheds, etc.).
• The types of equipment you use.
• Whether you sell any products or host events.

By providing these details, you can ensure that your B.C. hobby farm insurance policy is tailored to your needs and offers the right level of protection.