Farm Insurance FAQs - Your Questions Answered
Find answers to over 150 common questions about farm insurance in New Zealand. Expert guidance organized by topic for easy navigation.
Updated October 2025
Everything You Need to Know About Farm Insurance
Farm insurance can be complex with many variables, coverage options, and considerations. We've organized over 150 frequently asked questions into six comprehensive categories to help you find the answers you need quickly.
Whether you're looking for information about coverage options, the claims process, pricing factors, insurance providers, farm-specific questions, or legal requirements, you'll find detailed answers from industry experts below.
Coverage Questions
30+ questions about what's covered, policy types, buildings, livestock, equipment, liability, exclusions, and optional add-ons.
View Coverage FAQs →Claims Process
25+ questions about making claims, required documentation, timelines, assessments, settlements, denials, and dispute resolution.
View Claims FAQs →Cost & Pricing
30+ questions about insurance costs, premium factors, discounts, payment options, excess choices, and ways to save money.
View Pricing FAQs →Insurance Providers
25+ questions about choosing providers, FMG vs competitors, financial strength, service quality, brokers, and switching insurers.
View Provider FAQs →Farm-Specific Questions
30+ questions organized by farm type: dairy, sheep, beef, arable, lifestyle blocks, mixed farming, and specialty operations.
View Farm Type FAQs →Legal & Compliance
25+ questions about legal requirements, policy obligations, disclosure duties, insurance law, and regulatory compliance.
View Legal FAQs →Top 20 Most Common Questions
These are the questions NZ farmers ask us most frequently
1. What types of insurance do farms need in New Zealand?
Most NZ farms need building insurance (farmhouse, sheds, barns), equipment/machinery insurance, livestock insurance, public liability insurance, and business interruption insurance. The specific coverage depends on your farm type and operations. Essential coverage includes buildings (especially if mortgaged), major equipment, and public liability. Optional coverage includes livestock for hardy breeds and extended business interruption periods.
2. How much does farm insurance cost in NZ?
Farm insurance costs vary widely. Lifestyle blocks pay $1,500-$3,000 annually, medium farms (50-100 hectares) pay $5,000-$12,000, and large commercial operations (200+ hectares) pay $15,000-$50,000 or more. Costs depend on farm size, type of farming operation, total asset values, location and risk factors, security measures, and claims history. Get quotes from multiple insurers for accurate pricing.
3. How do I make a farm insurance claim?
Contact your insurer or broker immediately after an incident, document all damage comprehensively with photos and videos from multiple angles, make temporary repairs to prevent further damage (keeping all receipts), don't dispose of damaged items until assessed by the insurer, and maintain detailed records of all communications. Your broker can guide you through the entire claims process and advocate on your behalf.
4. Is farm insurance mandatory in New Zealand?
Farm insurance is not legally mandatory in NZ, but if you have a mortgage on your property, your lender will require building insurance at minimum. While not required by law, most farmers choose comprehensive coverage to protect their significant investment in land, buildings, equipment, and livestock. The financial risk of operating without insurance is too high for most farming operations.
5. What's the difference between FMG and other farm insurers?
FMG specializes exclusively in rural insurance with 115+ years of farming expertise and deep understanding of agricultural risks. They offer cooperative ownership where policyholders become shareholders, farmer-focused customer service, and rural-specific claims expertise. Other insurers like Vero, IAG, and AIG offer farm insurance alongside residential and commercial products. Both can provide excellent coverage - the choice depends on your preference for specialist vs. general insurers.
6. Does farm insurance cover flooding?
Most farm insurance policies in New Zealand cover flood damage, but coverage varies significantly by insurer and policy. Some high-risk flood areas may have exclusions or substantially higher excesses. Always check your specific policy documents for flood coverage details and any geographical restrictions. If your farm is in a flood-prone area, discuss this specifically with your broker to ensure adequate protection.
7. Can I reduce my farm insurance premiums?
Yes, several strategies can reduce premiums: increase your excess/deductible amount, install security systems and GPS tracking on equipment, maintain your property and equipment to high standards, bundle multiple policies with one insurer, pay annually instead of monthly, compare quotes from multiple insurers regularly, and implement documented risk management practices. Even small improvements can lead to 10-30% premium savings.
8. What farm equipment is covered by insurance?
Farm equipment insurance typically covers tractors, combine harvesters, planters, cultivators, spray equipment, irrigation systems, loaders, front-end loaders, mowers, balers, and other machinery. Coverage generally includes accidental damage, theft, fire, malicious damage, and sometimes mechanical breakdown if added. Mobile equipment used off-farm may require additional coverage or a separate policy.
9. Do I need separate livestock insurance?
Livestock insurance is often optional and separate from standard farm insurance policies. It covers death or injury from accident, illness, or natural disasters. High-value breeding stock, pedigree animals, dairy herds with valuable genetics, and show animals should definitely be insured separately. For hardy commercial stock on large farms, some farmers choose to self-insure. The decision depends on your stock value and risk tolerance.
10. How long does a farm insurance claim take?
Simple, straightforward claims can often be settled within 2-4 weeks. Complex claims involving loss assessors, multiple builders' quotes, or disputed valuations can take 2-6 months or longer. Emergency repairs are often pre-approved within days to prevent further damage. The timeline depends on claim complexity, damage extent, documentation quality, and insurer efficiency. Good record-keeping and prompt responses to insurer requests speed up the process.
11. What's not covered by standard farm insurance?
Typical exclusions include wear and tear, gradual deterioration, rust and corrosion, mechanical or electrical breakdown (unless specifically added), crop failure from poor farming practices, certain livestock diseases, intentional damage by the policyholder, war or nuclear incidents, market price fluctuations, cyber attacks (unless specifically added), and pre-existing damage or conditions. Always review your policy's exclusions section carefully.
12. Should I use an insurance broker or go direct?
Brokers save significant time by comparing quotes from multiple insurers simultaneously, provide expert advice on coverage adequacy, help with claims advocacy, often access better rates through volume agreements, and offer ongoing service. Direct purchase works if you know exactly what coverage you need, prefer managing everything yourself, and are willing to do your own comparison shopping. Most farmers find broker services worth the cost.
13. How often should I review my farm insurance?
Review your policy annually at renewal time, and immediately whenever you make significant changes like purchasing major equipment, constructing new buildings, changing farming operations or types, experiencing substantial asset value changes, adding new revenue streams like farm stays, or after any claim. Annual reviews ensure your sum insured amounts keep pace with inflation and replacement costs.
14. What public liability limit do I need?
Most commercial farms should carry $5-10 million public liability coverage. Lifestyle blocks may need $2-5 million depending on activities. Farms with public access, farm stays, farm tours, farm shops, or high visitor numbers should have $10-20 million coverage. A serious injury on your property could result in multi-million dollar claims. Don't underestimate this essential protection.
15. Does farm insurance cover business interruption?
Business interruption coverage is usually an optional extra that covers lost income and ongoing expenses if operations are disrupted by insured events like fire, storm, or equipment failure. Coverage periods typically range from 12-24 months, though longer periods can be arranged. This coverage is particularly important for dairy farms and other operations with consistent daily income streams. It can mean the difference between recovery and bankruptcy.
16. Can I insure a lifestyle block differently than a commercial farm?
Yes, absolutely. Lifestyle blocks typically need simpler coverage focusing on residential buildings, basic contents, and limited livestock (horses, hobby animals). Commercial farms need comprehensive business-level coverage including farm buildings, specialized equipment, machinery, commercial livestock herds, public liability, employers' liability, and business interruption. The coverage, premiums, and policy structures are quite different.
17. What happens if I'm underinsured?
If you're underinsured, you won't receive full compensation for losses, even partial losses. Many policies include average clauses (co-insurance provisions) meaning if you're 20% underinsured, you only get 80% of your claim payment. For example, if your shed is insured for $80,000 but actually costs $100,000 to replace, even a $10,000 partial damage claim would only pay $8,000. Regular valuations prevent this costly situation.
18. Do farm insurance policies cover earthquakes?
EQC (Earthquake Commission) covers residential buildings up to certain limits for natural disasters including earthquakes, volcanic eruptions, natural landslips, hydrothermal activity, and tsunami. Commercial farm buildings, farm equipment, and contents require private insurance coverage. Most farm policies include earthquake coverage but always verify specific terms, limits, and excesses in your policy documents.
19. Can I switch farm insurers mid-policy?
Yes, you can switch insurers anytime, but may incur short-rate cancellation fees (paying a penalty for early cancellation) and potentially lose accumulated no-claims bonuses or loyalty discounts. It's usually more cost-effective to switch at renewal time. If switching mid-term, ensure your new coverage starts before canceling existing insurance to avoid any gaps in protection. Never let your farm operate uninsured, even for a day.
20. What documentation do I need for a claim?
Essential claim documentation includes comprehensive photos and videos of all damage from multiple angles, proof of ownership (original purchase receipts, invoices, bank statements), your policy number and details, detailed incident reports describing what happened, repair or replacement quotes from qualified contractors, police reports (for theft or vandalism), vet reports (for livestock claims), and copies of any correspondence with contractors, authorities, or other parties. Better documentation means faster, smoother claims processing.
Can't Find What You're Looking For?
Our comprehensive FAQ sections are organized by category to help you find specific answers quickly. Use the category links above to browse questions by topic, or get in touch with our team for personalized assistance.
Browse FAQs by Category
Coverage Questions
Buildings, livestock, equipment, liability, and exclusions
Claims Process
How to claim, documentation, timelines, and settlements
Cost & Pricing
Premium factors, discounts, and cost-saving strategies
Insurance Providers
Comparing insurers, service quality, and switching
Farm-Specific Questions
Dairy, sheep, beef, arable, lifestyle blocks, and more
Legal & Compliance
Requirements, obligations, and regulatory compliance
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