Drive west from West Chester toward Unionville, or south toward Kennett Square, and the suburbs give way to paddocks, run-in sheds, bank barns and long gravel lanes. Chester County is still horse country, and plenty of families here keep a few horses, a flock of chickens, bees or a small orchard on a few acres.
Many of those owners assume their homeowners policy covers the whole property. Sometimes it covers much less than they think. This explainer walks through how insurers tend to look at hobby farms and horse properties, and where the gaps usually show up.
Homeowners policies are built for houses
A standard homeowners policy is designed around a residence, its contents, a limited amount of “other structures” coverage, and personal liability. It was not designed for barns full of hay, tractors, livestock or a business selling eggs at the end of the driveway. Depending on the carrier and the form, some farm-related exposures are limited or excluded entirely, especially anything the insurer considers a business activity.
Barns and outbuildings
“Other structures” coverage on a homeowners policy is often set as a percentage of the dwelling limit. On a property with a large stone bank barn, a run-in shed, fencing and an equipment building, that amount may not come close to the cost of rebuilding. Some policies also limit coverage for structures used for business or for storing farm products. If you have significant outbuildings, list them and ask how each one is treated.
Horses and other animals
Most homeowners policies do not cover the animals themselves. Coverage for the death or injury of a horse is usually a separate equine mortality policy. Liability is the bigger issue for most owners. If a neighbor’s child is hurt while riding your horse, or your horse gets loose and causes an accident on a back road, how your policy responds depends on its wording. Some carriers exclude or limit liability tied to horses, boarding or riding lessons. Pennsylvania’s Equine Activity Immunity Act can limit some negligence claims from adult participants, but only in narrow situations and only when the required warning signs are posted. It is not a substitute for insurance.
Equipment
A compact tractor, a zero-turn mower, a manure spreader and a horse trailer can add up quickly. Homeowners policies often limit coverage for motorized equipment, and many exclude vehicles used off the property or for business. A horse trailer typically needs its own attention on your auto policy or a separate policy. Check before you haul to a show in Devon or a trail ride in the state parks.
When a hobby becomes a business
This is where the most surprises happen. Boarding a friend’s horse for a monthly fee, giving lessons, selling hay, running a farm stand, or hosting events in a converted barn can each be seen as business activity. Once money changes hands regularly, your homeowners policy may not respond to related claims. Depending on the operation, the right answer might be an endorsement, a farm and ranch policy, or a separate commercial policy.
Weather on open land
Open properties take the full force of summer thunderstorms and winter wind. Large trees along fence lines, older barn roofs and long driveways that flood near creeks such as the Brandywine all deserve a look. Flood damage is excluded from standard homeowners and farm policies, so ask about flood coverage if any building sits near a stream. FloodSmart, run by FEMA, explains how flood insurance works.
Questions to bring to your agent
- Which of my outbuildings are covered, and up to what amount?
- Does my liability coverage apply to my horses, guests who ride, and animals that get loose?
- Are my tractor, mowers and trailer covered on and off the property?
- Would any of my activities be treated as a business?
- Is a farm and ranch policy or an endorsement a better fit for my property?
Peak Insurance is an independent agency working with 60+ carriers, so we can compare how different insurers handle hobby farms and horse properties. Visit our Chester County insurance page or our home insurance page, call (855) 449-8552, or contact us to set up a review.
