North Dakota, USA | Outdoor Dave - 10/14/2016 13:22
the one policy would cover both.
It is true, the one policy would cover both. BUT, you also just diluted your limit because you will be covering everything if both the farmer and land owner are somehow at fault. Without considering an umbrella (and I hope you do have one), Let's assume a $1M limit on your farmowners. You are now covering your own liability plus that of the land owner. You have a total of $1M available for settlement. If he had it added to his homeowners policy with a $1M limit, if you were equally responsible, you would each have your own $1M limit so you could handle a total settlement of up to $2M.
Most companies around here will add farm liability with an endorsement stating that the person is not actively farming, usually called a Land Lord or Non-Farming Endorsement, onto a home owners or farm owners policy for a very little charge.
Also, if the farmer and land owner happen to have different companies, you may have two sets of lawyers defending you. At the companies expense. I realize that can be either good or bad.
Eric in ND
Edited by Eric in ND 10/18/2016 13:43
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New Farm Lease Question
