Why Location Matters in Farm Insurance Pricing

The farm industry provides essential products and forms much of the backbone of the U.S. economy. However, agricultural operations often involve a multitude of risks and exposures. Even the most experienced farmers should value and prioritize insurance, but understanding how your location might affect premiums can be essential for budgetary planning. At Wood Insurance Agency, we’re pleased to offer guidance.

What Location-based Factors Affect Insurance Premiums?

Where you live and farm can be among the most influential factors used by insurance carriers when determining your rates. Location-related concerns may impact perceived risk levels when insurers calculate quotes for many different types of policies. Consider why the following aspects of your location might affect costs:

• Natural disaster risks—Farms’ buildings, equipment, livestock and crops are often inherently exposed to the elements. If you live in an area at greater risk of severe weather and other natural disasters, such as wildfires and floods, you’ll likely have to pay more for various policies, including farm property, crop and livestock insurance.

• Crime rates—Even small farms may unfortunately be vulnerable to criminals, wrongdoers and mischief makers. Whether it’s thieves attempting to steal valuable livestock or misguided youths thinking their pranks are harmless, criminal acts can inflict significant financial consequences. If you’re in an area with generally higher crime rates, you may be quoted higher rates due to carriers assessing a higher probability of claims.

• Proximity to emergency services—Fires and other incidents on your farm can require quick access to emergency services. For example, if you happen to be located relatively close to a fire station, it might help you save on your premiums, as emergency services can potentially arrive more quickly and limit damage.

Find the Right Rates Near You

If you own or operate a farm in Whitesboro, TX, contact Wood Insurance Agency today to explore coverage options and find suitable policies at ideal rates.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.