Egg prices have skyrocketed, and with them, an increased interest in backyard chickens. But before you acquire a flock, consider your liability risks and insurance coverage.

Liability

Keeping chickens can create liability issues for you. Chickens can cause bodily harm by pecking or transmitting disease.

Let’s say your flock is pecking around the backyard. A neighborhood dog stirs up your flock, causing one of the chickens to run into your neighbor’s yard. When your neighbor reaches out to redirect the chicken, it scratches them in fear. You file a claim with your insurance company, only to be denied because chickens aren’t covered. Then, your home insurance company drops you for not telling them you had backyard chickens.

Some home insurance companies use satellite imagery to check client properties. If you don’t tell the insurance company about your backyard chickens and they discover the flock in your backyard, you might receive a cancellation letter.

Also, your area might have laws or ordinances prohibiting backyard chickens. Read the rules that govern your municipality or city. They’re available online or at city hall.

Property damage

Your home insurance might not cover damage your backyard chickens cause to your or other peoples’ property. Chickens are always getting out of their coops, entering neighbors’ yards, and causing damage to lawns and other property. If you don’t have the right coverage and one of your chickens gets loose, your home insurance company might not respond if your neighbor sues you.

On the flip side, your insurance company won’t cover losses to your chickens or coop if you have a standard policy. If someone steals your chickens or the coop gets damaged by a storm, your home insurance won’t reimburse you. And if someone gets sick from the eggs you sell, your insurance company won’t defend you in court.

Additionally, home insurance policies exclude business operations, putting you at risk of being uninsured. If you sell your chickens or chicken eggs, your insurance company might consider it a home business or hobby farm. More on this later.

Increased risk for unwanted guests

Chickens can be considered an attractive nuisance. An attractive nuisance is something on your property that attracts uninvited guests, like a pool, trampoline, swing set or, in this case, backyard chickens. Even with a “no trespassing” sign and fence, uninvited guests (especially children) might enter your property. If they’re injured, you could be held responsible.

Chickens can also attract unwanted wildlife, increasing risks to your chickens, you and your neighbors. If you’re serious about raising chickens, do your homework.

Verify before you buy

If you’re buying a new home, check the local and state laws before you make an offer. If you need time to research, include it as a contingency with your earnest money offer. You can back out of the deal if your research reveals that your desired chicken coop is not allowed.

In the news

A Massachusetts seller sued a potential buyer over their agreement to purchase residential real estate. The buyer gave the seller a $97,000 earnest payment with chickens as part of the contingency. A title search revealed there was a law preventing chickens. The seller sued for the earnest money. A judge ruled that the seller return the down payment to the buyer.

However, depending on where you live, you might not see the same outcome. Tell your insurance agent about your plans for raising chickens. If your plans involve sales from part-time farming operations, you’ll need a sturdier policy like hobby farm insurance.

Hobby farm insurance

Farm insurance covers you for activities related to raising your backyard chickens and liability from selling the eggs.

For example, it offers protection if the eggs you sell get someone sick. It can also help with extended liability if your chickens injure someone. This is especially important if you intend to publicize your hobby farm for agritourism tours, school field trips or other community events.

Other policies cover you for losses if you have to euthanize your flock due to illnesses like avian flu. You might not get a full-time income from your chicken farming, but it can still hurt to lose sales. Business income replacement can help with that.

Talk to us

It’s best to get the right insurance for what you’re doing. Whether you’re buying a new home or reimagining your backyard, check your local laws and tell your insurance agent before investing in backyard chickens. They’ll help guard against liabilities and prevent your investment from flying the coop.