Australian farming is a complex industry, and one that farmers often have their hands full with. Because of this, they often don’t have the time to fully understand the intricacies of various insurance policies.
To give farm owners a better idea of what a policy should include, a few of the different sections are shown below.
House and contents
Unlike many other occupations, most farm owners live where they work and as such require a house and contents policy as part of the farm package. This house policy should include cover for accidental loss or damage, have generous sub limits for items within the home and cover for personal valuables and items that are temporarily removed from the home.
Farm property, including all farm contents, buildings, fences and farm machinery can be covered within the policy. Care should be taken to ensure you know what you are covered for here, as some policies do not have an option for accidental damage cover, others require an additional theft section to be insured and some have higher / lower limits for unspecified machinery covers.
Both private and commercial motor vehicles are in use on a farm are often subject to more trying conditions than their city counterparts, having to drive on rougher surfaces and haul larger loads.
Vehicles and machinery under finance are commonly required to hold comprehensive cover on these items. Alternatives for non financed vehicles are the lesser covers of Third Party Property Damage + fire and theft or just Third Party Property Damage.
On most policies, the farm liability picks up the liability for unregistered or provisionally registered vehicles
Farm insurance includes cover for a number of other categories not mentioned here. Farmers should ensure they’ve appropriately investigated every avenue that could be at risk and if unsure, seek advice from a licenced insurance broker