What if your combine is damaged by a rock or it burns this fall. Now you decide you need to rent a replacement in order to continue harvesting? Does your insurance policy pay for these extra rental costs? Your farm policy could pay for these costs but you need to make sure you have the coverage on your policy. The Machinery Loss of Use Endorsement will pay for the rental costs of the replacement farm machinery if the damage to your equipment is covered by insurance.
You also need to make sure you have enough coverage. It used to be that a maximum $1,000 a day rental coverage to a maximum of $10,000 was enough coverage. Today farm machinery rental rates are considerably higher. Farmers are telling me that they can easily exceed $1,500 in a day. For a very minimal difference in cost you should look at insuring at the higher level.
Today’s farmers should purchase insurance from people who know farming. Farming should be viewed as a business, and you should seek advice from people who understand your business.