| Podcast
For this episode of Landowner Insider, I sat down with Brandon Carrell, co-owner of BC Insurance of Texas in Stephenville, for what I joked would be our highest-listened-to episode ever. Brandon has been in insurance since 2000 or 2001 and focuses on farm and ranch coverage. Elizabeth and I are consolidating our own coverage with him, and this isn’t a paid endorsement. Nothing here is insurance or legal advice, so talk to your own agent and attorney about your situation.
Why Insurance Costs More and Covers Less
- Two problems at once: Insurers had record storm damage in roughly three of the last five years, plus inflation raising the cost of every claim. Either one alone would have been manageable.
- The math stopped working: Brandon cited a farm paying about $10,000 a year in premium that filed a $350,000 to $400,000 claim, roughly 40 years of premium to break even.
- Customers absorb it: Insurers raised rates, cut coverages, and changed how claims are paid, so you pay more premium and more out of pocket.
- It’s cyclical: Competition should bring rates down again once carriers are profitable.
Roof Coverage Is Where You’ll Feel It
- Higher wind and hail deductibles: The 1 percent deductible that was normal for 10 to 15 years is now commonly 2 percent, and some carriers want 3 to 5 percent of insured value. At 5 percent, you may have little real roof coverage.
- Cosmetic exclusions on metal roofs: If hail only dents the metal, many policies pay nothing. Brandon described a dairy client where a $1.9 million claim became zero.
- Roof payment schedules and ACV: Past a certain roof age, often 10 years, the insurer pays only a percentage of replacement cost.
- Deductibles you must pay: Texas law no longer lets a roofer waive or rebate your deductible.
Why the Cheapest Policy Isn’t Always the Best Deal
- The quote: An older client on a fixed income found a policy $1,400 a year cheaper.
- The catch: Hers had a 1 percent deductible ($3,500 on a $350,000 home) and full roof replacement. The cheaper one had a 2 percent deductible ($7,000) and a payment schedule covering about 64 percent of the roof.
- The result: A roofer estimated about $14,000 out of pocket versus $3,500. She met in the middle, with the higher deductible but replacement cost kept.
- The lesson: Most consumers can’t compare two declarations pages, because policies used to be nearly identical and now they aren’t.
Homeowners vs. True Farm and Ranch Liability
- Incidental farm endorsements have limits: Carriers cap them by number of horses, acreage, or locations.
- When you need a true farm policy: Cattle, a second location, or leased land usually push you out of a homeowners policy.
- The gap: If a homeowners policy is written for someone with horses and cattle, they may lack farm liability if cattle get on the road or a horse kicks someone.
- UTVs and side-by-sides: A farm policy may stop covering them off the property unless you have an endorsement.
Umbrella Policies and the Cost of Scattered Coverage
- How an umbrella works: Every asset (rent house, boat, ATV, farm, vehicle) has its own liability limit, and the umbrella sits on top as extra protection.
- The catch: Most carriers won’t write an umbrella unless they hold all the underlying policies. A standalone umbrella costs more.
- The risk: If your ATV is insured elsewhere and an accident exceeds that limit, the rest can come to you. Insurers tend to pay limits quickly, then the plaintiff looks at your assets.
- Protected assets: Some assets are shielded from creditors and some aren’t, and that’s a question for your attorney or financial advisor.
- Real example: A client had 20 rent houses with one agent and 20 with another, and a house that burned down was on nobody’s list. If your agent doesn’t know what you own, they can’t protect it.
Employees, Training, and Workers’ Comp
- Employee liability endorsement: A farm policy can add one for a part-time hand, but it isn’t workers’ comp and you still have to be found negligent.
- Workers’ comp: Texas doesn’t require it until you reach a large number of employees, but Brandon recommends it even for one. It covers medical bills and lost wages and, outside gross negligence or intentional acts, protects the employer from being sued beyond what the policy pays.
- The question to ask yourself: If a hand is flown out by helicopter with a $500,000 bill and six months off, what’s your plan?
- Training matters: Insurers look at your claims, but lawyers look at your training. If you put an untrained teenager on a tractor with no instructions, an attorney could argue gross negligence.
- Brandon’s test: Think about what your employee would say on the stand if asked who trained them.
Keep Your Policy Current
- It’s a snapshot: A policy is a contract covering what’s listed on the day of the claim.
- Changes to report: New leases, new land, an LLC, a family trust, or splitting a ranch among heirs. An LLC that isn’t on the policy isn’t insured, even if you’ve operated as a sole proprietor for 15 years.
- Schedule locations: A farm policy’s liability limit only extends to the locations listed on it.
- Annual review: Brandon recommends sitting down with your agent at least once a year.
Horses, Business Use, and Other Common Questions
- Horses in transit: The Texas minimum auto limit is 30/60/25, meaning only $25,000 for property damage. If someone hits your rig and your horse dies, you may not recover much, so horses hauled often are worth insuring.
- How horses are valued: Insurers start with what you paid, and you can raise it with documented training and winnings. A common rule for homegrown colts is about three times the stud fee.
- Business use: If you use your truck, trailer, or side-by-side to show properties, tell your agent. Some carriers cover a realtor on a personal policy classed as business use, and others don’t.
- Scheduled items: Taxidermy, guns, art, jewelry, saddles, and tack generally need to be scheduled. Coverage often ends when items leave your premises, and cash is highly limited.
- Deer blinds and feeders: They need to be scheduled or covered by a blanket limit. With a high enough deductible, many owners self-insure them.
- Chapter 87 signs: Texas has a statute that provides some liability protection, but the signs must be posted. Brandon also recommends liability waivers with hold-harmless language reviewed by your attorney. None of it prevents a lawsuit, but it makes it harder to win one.
- Hunting: Leasing to hunters who bring their own equipment is lower risk than hosting guided hunts. Commercial operations with guns, meals, and lodging are harder to insure and cost more.
Pasture, Range, and Forage Insurance: A Deadline to Know
- What it is: Often called drought insurance, this federally subsidized coverage pays out when rainfall in the intervals you choose comes in below average.
- What it covers: Grazing and hay acres.
- Deadline: Brandon said the deadline for the 2027 crop year is December 1, so check with your agent soon.
Watch the Full Episode
This article is based on my conversation with Brandon Carrell of BC Insurance of Texas on Landowner Insider.
[Related clip: TBD]
Work With Mock Ranches
Understanding what it costs to insure and protect a property is part of buying or selling smart. Explore Texas ranches for sale, horse properties, or all Texas land for sale at mockranches.com, and reach out to our team if you’re planning a purchase or sale.
About BC Insurance of Texas
Thanks to Brandon Carrell and the team at BC Insurance of Texas, a family-owned independent insurance agency in Stephenville. As an independent agency, BC Insurance shops multiple carriers instead of representing a single company, and Brandon specializes in farm and ranch coverage with more than two decades in the industry. Learn more at bcinsurancetx.com.
