Farm/Ranch Owner Insurance
Most farmowners' insurance policies exclude coverage for collapse of farm outbuildings due to weight of ice and snow, although most insurers offer this coverage as an option for an additional premium. To find out if your buildings are eligible for this coverage, contact your insurance agent.
Crop hail insurance policy provisions do not permit you to purchase coverage if your crops have already sustained hail damage, although most crop hail insurers will permit you to purchase coverage subject to inspection of your crops. Check with your agent for more information.
Pursuant to South Dakota Codified Law (SDCL) 58-10-10, if a building is wholly destroyed, the insurance company must pay the amount stated on the policy, as long as there is no criminal fault on the part of the insured.
Depending on your operation, you likely do not need to carry workers' compensation insurance. But you should probably have a farm liability policy to protect your interests.
However, many farmers' liability policies specifically exempt claims from employees. In order to have employees claims covered, you would need to add an employer liability endorsement to the farm liability policy.
This could also occur in instances where farmers are engaged in the exchanging of work. While a neighbor works for the other farmer, he is considered an employee, and is only covered for liability purposes if the employer liability endorsement is present on the farm liability policy.
Proof of Loss Form
When you turn in a claim to an insurance company, an adjuster is assigned to contact you and assess the damages sustained by your crop. The adjuster and you will review the information and an amount is stated on the proof of loss, which you sign.
Upon completion of this, the adjuster submits the information to the insurance company who then audits the information. If a discrepancy is found, i.e. yields are incorrect, number of acres are incorrect, etc., the insurance company has the right to reduce payment.
The structural defect would apply if that was the only reason your building fell down. If a windstorm blew your building down, unless there is evidence that the building would have collapsed on its own, wind is the cause of the damage, and the loss should be covered.
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Pierre, SD 57501