1244 Victoria Street North, Kitchener, Ontario, N2B 3C9   Contact/Email   519-743-1689   519-743-1401

Hobby Farm Insurance

Your Farm, your Home, your Business

  • Hobby farms are small-scale versions of commercial farms. Hobby farm owners treat the farm as a “hobby” with no intention of making money or their farm income is only a fraction of their total income.
  • Owning livestock, renting out land for farm use, having no farm employees, and using farm machinery are only a few things that qualify your farm as a hobby farm. And like commercial farms, you need insurance coverage to protect what is important to you.
  • Let Hancock Insurance find the right hobby farm insurance package for you.

Farm FAQ’s

If you need more information, e-mail us your questions at info@hancockinsurance.ca.

1. Actual Cash Value v. Replacement Value

Actual Cash Value is the value of the building, after depreciation is applied. This type of insurance would require the insured to contribute in some form to the repair of the building. Replacement Value is the cost of replacement of a building with like kind and quality materials and workmanship without depreciation.

2. Co-Insurance

Co-Insurance is invoked on a partial loss. It is the requirement to insure the property to a certain percentage of its replacement value. For example if there is an 80% co-insurance clause, the policy requires the item insured carry insurance to a minimum of 80% of its replacement value. If the insured chooses to underinsure their property, the following formula is applied:

Replacement value: $500,000
80% value: $400,000
Insurance carried: $350,000
Loss: $200,000
Insurance Co. pays: $175,000

In the event of a total insurable loss, the full insurance carried would be paid.

3. Business Interruption Insurance

Business interruption insurance protects against losses resulting from a temporary shutdown because of an insured peril. Generally, business interruption insurance provides reimbursement for lost net profits and necessary continuing expenses.

There are various types of business interruption coverage available. A business interruption policy that includes extra expense coverage in case you have to carry on business at a different location because of insured damage at your original place of business can be a wise business insurance investment.

4. Livestock Coverage

Coverage can be carried for a variety of perils resulting in death of the animal, for example, fire, wind, lightning, impact by vehicle, entrapment, casting, colic, tuberculosis, even power interruption.

5. Fuel Tanks

Please view the following link with respect to risks and prevention of fuel oil losses.


Ontario Ministry of Agriculture, Food & Rural Affairs

Ontario Federation of Agriculture

Dairy Farmers of Ontario

Ontario Cattlemen’s Assocation

Ontario Livestock & Poultry Council

Ontario Pork

Technical Standards & Safety Authority (Fuel Tanks)

Ontario Plowman’s Association

Ontario Farmer

Farmers Markets Ontario