Scheduled vs. Blanket Coverage: Which Is Right for Your Farm?

When selecting property insurance for your farm or ranch, you’ll likely have two options to protect your farm/ranch personal property: scheduled or blanket coverage. How do you know which one is the better fit for you and your operation? The answer depends — here’s what to consider. 

What Does Blanket Coverage Protect?

Blanket coverage provides protection for farm personal property losses up to the total blanket limit as stated in your policy. Blanket coverage is typically used to insure groups of miscellaneous equipment such as smaller tools, implements, feed, pesticides and fertilizers, and even office equipment to run the business. 

Key Facts About Blanket Insurance

• Blanket coverage provides a total limit for your covered farm property.
• In most cases, once blanket insurance is added, coverage is provided unless specifically excluded or further limited within your policy, without having to specifically schedule each item. 
• Some blanket policies have minimum coverage amounts for the total blanket.
• There could be a per-head limit on livestock so be sure the blanket amount aligns with the actual value of your livestock. 
• Blanket coverage is typically subject to an insurance to value or co-insurance provision.

What Does Scheduled Coverage Protect?

Scheduled coverage is typically used to cover high-value items. In addition, if there are any items for which you want specific coverage limits, scheduled coverage may be more appropriate.  

Key Facts About Farm Scheduled Insurance

• Generally, you can pick and choose which items to schedule, but common ones include irrigation systems, high-value livestock, hay and straw and large equipment.
• The value of certain types of farm commodities such as grain and livestock can fluctuate due to inventory size or market prices, so it’s a good idea to review these numbers throughout the year to ensure you have the appropriate amount of coverage.
• Each scheduled item is required to have a description. For machinery, this might mean listing out the make, model, year and serial number.

The Importance of Valuation 

One of the primary things to consider when selecting coverage for your farm or ranch is the policy’s co-insurance clause. A common provision, co-insurance requires you to insure the covered property to a specified percentage of its full value, typically between 80 and 100 percent. If a loss occurs, and it is determined the limits purchased are less than what is required by the co-insurance clause, you could get stuck footing a big portion of the recovery bill. To avoid this, be sure to maintain proper valuation of your farm’s property and ensure that you aren’t underinsured. 

We’re Here to Help

Protecting your operation is an essential part of running a business, but most farmers and ranchers don’t have the time to wade through various policy documents and coverage options. That’s where Farm Bureau comes in. We can help ensure you have peace of mind knowing you have a plan in place. Request a quote today to learn more.