Most of us don’t think much about our insurance until we suddenly need it. This week, Tom Arbaugh of Farm Bureau Insurance reminded us that understanding your coverage before a loss is one of the most important protections you can give yourself.
Tom walked us through a real home policy using his own declaration pages as a guide. He began by sharing something many people don’t know: Farm Bureau isn’t only providing insurance—they have a statewide mission to end childhood hunger in Michigan, partnering with local farmers to feed families in need. Employees volunteer, and your $50 Farm Bureau membership, as a client, helps support this work.
From there, Tom broke down the core parts of a home policy—starting with property coverages and deductibles. Beyond the standard deductible, he discussed today’s increasingly common Wind & Hail Deductible, which can range from $1,000 to $10,000, and that Farm Bureau automatically sets at $5,000 on million-dollar homes. Some policies even use percentage deductibles, which are increasing in favor, with providers.
A key part of Tom’s presentation was helping us understand their four major coverage categories:
- Coverage A – Dwelling
- Coverage B – Other Structures
- Coverage C – Personal Property
- Coverage D – Loss of Use
“It’s all about replacing what people have lost,” Tom said—a simple idea that captures the heart of why the details matter. Breaking down each further, he explained FBMI sets Other Structures is 10% of your dwelling coverage as a baseline; Personal Property is “anything that would fall out” if your house was to be tipped upside-down; and Loss of Use is determined by the real cost of being displaced (Farm Bureau documents up to a year of expenses). There is also an option for Extended Coverage, which can add 25–50% more protection in the event of a total loss.
Tom also highlighted additional coverages and endorsements that protect homeowners from the kinds of risks most people don’t think about—cyber incidents, home systems breakdown, water backup, sump overflow, underground service lines, and replacement of personal property. For high-value items like jewelry, firearms, and precious metals, scheduled coverage ensures nothing gets overlooked.
Tom’s presentation underscored a simple truth: insurance isn’t about paperwork—it’s about clarity, preparedness, and peace of mind. The more you understand, the better protected you are.
If you’d like help reviewing your own coverage or want to understand what risks you may not be seeing, connect with Tom Arbaugh of Farm Bureau Insurance.
And if you’d like to learn alongside a referral community that enjoys helping each other succeed, come visit Border to Border Business Connections—where knowledge shared becomes protection gained.
