It’s 3 a.m. An extension cord shorts out. Your barn burns to the ground.
You lose the structure ($150,000), the tack ($20,000), and four horses ($60,000).
The adjuster cuts a check for the barn and the tack, then says, “We don’t cover the horses. Livestock is excluded from the property policy.”
Key Takeaways
- Property vs. Livestock: A standard Farm policy covers “Structures” and “Personal Property” (tractors/tack). Living animals are a separate class code.
- Broad Perils: You can add “Livestock” coverage for named perils like Fire, Lightning, and Smoke.
- The Head Limit: Most farm policies have a low limit per head (e.g., $2,000) unless you schedule them individually.
- Smoke Inhalation: Many horses survive the fire but die later from smoke damage. Ensure “Smoke” is a covered peril.
The “Why” (The Trap): The Commercial Farm Policy
Unless you have individual Mortality policies on each horse (expensive), you rely on the Farm policy.
The Trap: The Farm policy treats horses like cows. It assumes a generic value ($1,000). If you have show horses, this pays pennies on the dollar.
The Investigation: Farm Bureau vs. Specialty
I compared a standard Farm Bureau policy against a specialist.
Farm Bureau / Nationwide
- Approach: Blanket coverage.
- Limit: You might have $50,000 blanket coverage for livestock, but a max of $2,500 per animal.
- Result: You lose a $20,000 dressage horse, you get $2,500.
Great American (Farm & Ranch)
- Approach: Scheduled Livestock.
- Action: You list “Bay Gelding ‘Joey'” at $20,000.
- Cost: You pay a premium per $100 of value (cheaper than full mortality, as it only covers fire/lightning, not colic).
Comparison Table: Fire Coverage
| Item | Property Coverage | Livestock Coverage (Blanket) | Livestock Coverage (Scheduled) |
| The Barn | Covered | N/A | N/A |
| Hay/Tack | Covered | N/A | N/A |
| Horses | Excluded | Covered (Low Limit) | Covered (High Limit) |
[IMAGE: Graphic of a barn fire with dollar signs burning, separating structure from animals]
Step-by-Step Action Plan
- Check Your Declarations: Look for “Livestock.” Is there a limit per head?
- Schedule High-Value Horses: If you have horses worth more than $2k that don’t have individual mortality policies, add them to the Farm policy as “Scheduled Livestock.”
- Install Heat Sensors: In 2026, Wi-Fi heat sensors cost $50. They alert your phone before the fire spreads.
- No Extension Cords: 90% of barn fires are electrical. Hardwire everything. Insurance inspectors look for this.
FAQ
Does this cover boarders’ horses?
NO. That is “Care, Custody, and Control” liability. The Farm Property policy only covers your horses.