Farm Insurance, what is included?

By Abbie Wilson    March 26, 2019

Farm insurance can be one of the most important financial protections you put in place to take care of your farm and your financial well being.

With farm insurance, it is good to know what is included with your policies and what is excluded. Interestingly with farm insurance, almost all of the different items you might want to insure can be optionally included, meaning you can pick and choose what is insured and the levels of coverage you are comfortable with for those items. On the items insured, basic covers; such as fire, theft, storm, impact and listed events are often included as part of the coverage on the items being insured.

What is excluded from Farm Insurance?

With exclusions from your farm insurance, it is worth engaging with an insurance broker to give you comfort and insight around what is included and what is excluded from the specific policies you are considering.

One area that is worth discussing is flood cover and what coverage your insurance policies or Farm Pack provides for Flood. Flood cover maybe excluded and if it is excluded then you may need to consider, even if you are out of a flood zone, how you will manage this risk. For example, a home and contents insurance policy will typically cover flood, so sometimes it makes sense to cover your home and contents with an insurance policy that is independent of your Farm Pack. Please ensure you talk with your insurance broker before making any insurance decisions.

The problems of low sum insured values for your farm

In tight economic times, it can be tempting for farmers to reduce their insurance or cancel the entire insurance policy as a means to save a few dollars. However, reducing your insurance or cancelling your policy can lead to a worse outcome in the long run. One immediate impact is that your farm can be underinsured. Being underinsured might result in some financial penalties from the insurers when you need to claim. Cancelling your farm insurance policy, whilst an understandable decision in the short-term, can add undue risk into what is already a hard economic situation.

Three helpful questions to ask yourself to check your farm insurance:

1: How would you expect a farm Insurance policy to respond to different scenarios on your ? What would you expect a broker to be able to do for you…
2: Identify your “worst-case” scenario and consider how you might respond and handle a scenario like that occurring.
3: Do you honestly know what you are covered for, by your insurance, with your right now?

If you don’t know, are unsure or have no time to know for sure, then please consult your insurance broker or reach out to me, Abbie Wilson.

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