January 11, 2010 at 6:26 am #251086
Many of my friends and neighbours learnt a hard lesson after Black Saturday last year – could have easily been us as well. I’m in the midst of updating our insurance but my goodness it is a minefield to navigate when you don’t live in an average house in the suburbs.
So, perhaps a warning to others here living a similar lifestyle and also I would love for anyone to share how they have their insurances set up.
Not too many insurance companies appear to be interested in hobby farms now – funny how they fell over themselves for our business before the fires and reassured us that their company’s policy was all we needed….when it came to the crunch, as those around us found out, they weren’t policies suited to hobby farms and it’s very difficult for many of them struggling to build up half of what they had before. We do not make income from the property.
Quotes are currently at least 6x’s what we were paying – I understand insurance prices have gone up since Black Saturday and that we were not even insured for things we thought we were, thus an increase in the value we are looking to insure.
From what I’ve learnt – we would have extremely limited coverage under a domestic policy.
We need to insure house, large detached building used for domestic purposes, 2 sheds used for both tools used on the property and to a lesser degree, tools hubby uses for business, 4 wheeler motorbikes used for farm maintence/leisure, contents of all buildings (not business tools as these are insured separately), water tanks connected to house and sheds, domestic pumps to house and shed and fire pumps and 2 x carports. Fencing would be nice, as would stock (couple of horses, cows and 3 x goats) but in an effort to bring down quote we are looking to forgo covering it. As you can imagine after so many years here and the building of it completed with our own blood, sweat and tears, the value of it comes to a substantial amount. There is also farm public liability of which the value of is very much more than domestic public liability.
Would anyone care to share their situation of how they have gone about the subject of insurance for their properties/property?January 11, 2010 at 1:19 pm #450198
We had to renew insurance late last year, our (then) insurance company (Elders) put the premiums up over $500 p.a. so we decided to shop around.
Went with RACV who were very helpful. They suggested we have two separate policies – one for the house and contents, the other for the farm buildings, machinery, ATVs etc. (we also do not produce income from our farm).January 11, 2010 at 7:02 pm #450199
We found that we needed to have “pets” and not “livestock” to bring the price down. But really we DO just have pets and not livestock. Well, they don’t think they’re livestock anyway.:lol:January 11, 2010 at 9:30 pm #450200
try splitting your policies.
We have farm insurance with Landmark
House and contents insurance with NRMA
as Landmark’s premium for insuring house and contents was higher than NRMA.January 12, 2010 at 12:54 am #450201
We had a seperate house and farm insurance for incoming producing property,
Now we are not incoming producing but as the land is over a certain amount of acres 2 or 5 I cant remember it is classed a small farm non income producing ie hobby farm
Through a broker we have a Small Farm Policy with QBE Insurance.
Cost was about $1200, but we have minimal cover mainly aimed at having some public liability, house is insured for 166K, contents 56k and 20million Public liability.
Non of our machinery, tanks fences tools or anything are insured.
Not sure if it good bad or otherwise but thats what we have.
MaxJanuary 12, 2010 at 1:55 am #450202
I can recommend Elders farm insurance. We’ve been with them for about 5 years and have had to make two significant claims. On both occaisons they were superb to deal with (and I have high standards lol) and got the finances through asap with no carry on. :tup:January 12, 2010 at 2:47 am #450203
QBE has a very bad reputation among the kinglake fire victims for not paying upJanuary 12, 2010 at 2:53 am #450204
Wow J, after readin gyour post I think I will look at our insurance more closely.
I would not really know how we are covered. Thanks for the heads up.January 12, 2010 at 2:57 am #450205
I reckon you’re mad not having the boundary fences at least insured as you are responsible for your half of the cost and they are one thing that you are likely to be asked to replace ASAP. Particularly if you back onto someones property who is actually needing to make a living from their property. As it it impossible to restock until these are done.January 12, 2010 at 3:34 am #450206
Ave a goMember
Bala wrote:Through a broker we have a Small Farm Policy
This is you best bet – they will be able to get quotes from a couple of different insurers – generally have policies with better wordings and will be there to fight for you if things go wrong/you have a claim – Also help to ensure that you get any additional benefits you are entilteld to (ie Alternate Accomodation Expenses)……
You can jump on this website to find someone local. Won’t cost you anything to have a chat anyway – http://www.niba.com.au/html/need-a-broker.cfm
Just my 2 cents.
MattJanuary 12, 2010 at 8:26 am #450207
Thanks everyone. Some great info and stuff we never thought of.
ballamara, which insurance co does not have a bad name after the fires 🙂 ? Unfortunately most have a bad story but I believe that many disputes were resolved when the govt stepped in on this occasion.November 29, 2012 at 7:14 pm #450208
Hi Jaydatoo, I know it is over two years since you posted this but I wondered what you ended up choosing to do? We are pretty much in the same situation as you with the range of things we need to have covered and no income being produced, but our regular insurer AAMI doesn’t cover farms, or sheds or machinery. They can and do cover the house, contents and a garage, but I know the rest of the kit is not insured.
Possibly a broker is the way to go but I was curious to know what solution you found.
Thanks.November 30, 2012 at 1:17 am #450209
We ended up going thru WFI – Wesfarmers. Numerous quotes from many different companies including a couple of brokers…RACV were the most expensive at over $6000 and Wesfarmers were not the cheapest but the area manager came out to look over the place – yes, she even went out in the paddocks, checked everything out and very specifically told us how each thing would be covered if we went ahead, and what wouldn’t be covered. The policy is broken down and most things have an individual value on them as well as an excess. The area manager was very thorough and answered all our questions. We ended up removing a few things but adding other things based on price of insuring them. The first year the policy was just under $3000.00. The 2nd year I added something that I had insured elsewhere and it rose by $600 which was a little less than I was paying on the other policy but with a better cover.
We actually made a claim (1st claim ever on our insurance!) around 18 months ago after my daughter fell down the steps at Flinders St Station with her laptop on the way to uni. She smashed the macbook pro (only a couple of months old). I had added it to the policy when she bought it thank goodness! The actual claim took about a month with a very unhelpful claims officer. Sure was ready to ditch WFI after that but I got on to our area manager to ask her what was going on and the claim was sorted out the next day.November 30, 2012 at 8:36 pm #450210
Thank you very much for all of that – really helpful.
Insurance is such a minefield and indeed, until you make a claim you have no idea what the ‘service end’ will be like.
It would be so good to have someone actually come and see the property and what is there – And to know what is insured for how much. I’ll see if I can ask for that.
Many thanks – much appreciated!
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