Protecting Your Investment: Insuring Your Center Pivots

A center pivot is a major investment for most farmers

It’s an effective irrigation system that provides water to crops, but it can be expensive. And while it is a “structure”, it also has aspects of a fixture and a vehicle and therefore some risks of all of these. That’s why it’s important to know how to insure your center pivot and protect your investment from unforeseen expenses and damages. Let’s dive into the details of insuring your pivot!

Aren’t my Center Pivots Already Covered? 

If you have a Farmowner’s Insurance Policy, it is possible to add coverage for your center pivots, but “mobile irrigation equipment” is excluded from all blanket policies. In addition, coverage on these policies may not be adequate. Equipment as vital and expensive as an irrigation sprinkler deserves its own specialized protection. You also may want to avoid filing center pivot claims on your farmowner’s policy, as this can negatively – and possibly disproportionately – impact your overall rates. 

Types of Insurance for Pivot Sprinklers

Insurance for center pivots typically falls into two categories: property damage insurance and liability insurance. Property damage insurance covers the cost of repairs if the pivot is damaged or destroyed by a covered event, such as a storm, flood, fire, or even theft. Liability insurance, on the other hand, covers any third-party claims arising from personal injury or property damage caused by your pivot. 

Coverage Differences for Irrigation Pivots 

Center pivots depreciate quickly. If your sprinkler system is only covered at its current value, you might find yourself paying a lot more out-of-pocket than you’d expect, even if the sprinkler you’re replacing is only a few years old. Some policies only cover you for “Actual Cash Value”, meaning your claim would be based on the depreciated value of the center pivot. Having a “Replacement Cost” policy may be a better option for you, as a claim could then be based on how much it would cost you to fully replace the covered equipment. 

In addition, you have other equipment that likely facilitates your center pivots’ operations. Make sure your pump, electrical panels, or other pieces of equipment are adequately covered in whatever policies you have in place. These are just as vital to your irrigation system, and an uncovered loss is not how you want to find out you didn’t have the right insurance. 

Start a Pivot Insurance Quote

Having adequate insurance coverage is essential when it comes to protecting one of your biggest investments – namely a center pivot irrigation system. We have been helping insure this equipment for years, and would love to discuss your coverage needs and provide you with options.