Farm Insurance Claims Process FAQs

How do I make a farm insurance claim?

Follow these steps immediately after an incident:

1. Ensure safety: Make sure all people and animals are safe. Secure the area to prevent further damage or injury.
2. Contact your insurer: Notify your insurance company or broker within 24 hours. Most insurers have 24/7 claims hotlines. Have your policy number ready.
3. Document everything: Take comprehensive photos and videos of all damage from multiple angles. Document the scene before touching or moving anything.
4. Prevent further damage: Take reasonable temporary measures to prevent additional damage (tarp holes in roofs, secure livestock, etc.). Keep all receipts - emergency repairs are usually reimbursable.
5. Don't dispose of damaged items: Keep damaged property for insurer inspection unless it's a health or safety hazard.
6. Complete claim forms: Fill out all required paperwork accurately and completely. Your broker can assist with this process.
7. Cooperate with assessors: Provide access to your property and all requested information to loss assessors.

Should I contact my broker or insurer directly?

If you have a broker, contact them first - that's what they're there for. Brokers act as your advocate throughout the claims process, ensuring all paperwork is correct, following up on progress, negotiating settlements, and resolving issues. They understand claim procedures and can expedite processing. If you purchased insurance directly without a broker, contact your insurer's claims department immediately. Either way, notify them within 24 hours of discovering damage. Delays in reporting can complicate claims or even result in denial for late notification.

Can I start repairs before the claim is approved?

You must make emergency temporary repairs to prevent further damage - this is actually a policy requirement. For example, tarping a damaged roof to prevent water ingress, or securing broken windows. Keep all receipts as these costs are usually reimbursable. However, DO NOT begin permanent repairs or replacement until the insurer has assessed the damage and approved your claim. Starting major repairs before assessment can jeopardize your claim. Take extensive photos before any repairs. If urgent permanent repairs are needed for safety or operational reasons, get written approval from your insurer first.

What if damage is discovered weeks after an event?

Report it immediately upon discovery, even if the incident occurred weeks or months ago. Explain when the damage likely occurred and why it wasn't discovered earlier (for example, roof damage discovered when internal water damage appears, or machinery damage that only manifests when equipment is next used). Late discovery doesn't automatically invalidate claims, but you'll need to prove the damage resulted from a covered event. Document everything thoroughly. Some policies have reporting timeframes - review your policy terms. The sooner you report after discovery, the better your claim prospects.

Do I need to report small claims?

Consider your excess amount before claiming. If damage is less than your excess, there's no point claiming - you'll pay the full cost anyway, plus the claim may affect your premiums and no-claims bonus. For damage slightly above your excess, weigh the benefit against potential premium increases. However, always report significant incidents to your insurer even if you're not making a claim, as this creates a record. Some damage may worsen or lead to additional problems later. For theft or vandalism, report to police regardless of claim value. Keep records of all incidents for your own documentation.

What happens in natural disaster mass claim events?

After major disasters affecting multiple policyholders (earthquakes, floods, cyclones), insurers manage hundreds or thousands of claims simultaneously. Expect longer processing times. Insurers typically triage claims by severity, prioritizing those affecting safety, habitability, or business operations. Document damage immediately even if assessors can't visit for weeks. Emergency repairs that maintain safety or prevent deterioration are usually pre-approved. Communicate regularly with your insurer about priorities. Consider temporary operational solutions while waiting. After major events, insurance industry advocacy groups and government agencies often provide additional support and resources.

How should I document damage for claims?

Take photos and videos immediately, before moving or touching anything. Capture wide-angle shots showing context and location, then close-ups of specific damage. Photograph serial numbers, model plates, and identifying features. For buildings, document each damaged room or structure separately. For equipment, show damage from multiple sides. Include a reference object (ruler, coin) to show scale. Take photos in good lighting; use flash if needed. Video walkthroughs are excellent for showing overall damage scope. Date-stamp if possible. Back up all photos to cloud storage immediately - phones can be lost or damaged.

What if I don't have purchase receipts?

Missing receipts complicate claims but don't make them impossible. Provide alternative proof: bank statements showing purchases, credit card records, supplier invoices, equipment service records, photos showing the items before damage, manufacturer model information for age and value estimation, or statutory declarations describing purchases. For livestock, provide breeding records, sale yard receipts, or vet records. Maintain ongoing asset registers with photos and values - this prevents future documentation problems. Insurance companies understand farmers don't keep receipts for everything, but some proof of ownership and value is essential for fair settlement.

Do I need a police report for theft claims?

Yes, police reports are essential for theft, burglary, vandalism, and malicious damage claims. Report theft to police immediately and obtain a police report number. Some insurers won't process theft claims without police reports. The report establishes the official record of the incident and its circumstances. For vehicle or equipment theft, police reports may trigger national alert systems. Even if police can't recover stolen property, the report is required for insurance purposes. If stolen items are recovered after settlement, you'll need to notify your insurer. Police reports also help identify theft patterns that might affect farm security assessments.

What records should I keep during the claims process?

Create a claims file containing all documentation: claim forms and correspondence with insurers, photos and videos of damage, receipts for all expenses (temporary repairs, accommodations, emergency purchases), assessor reports and communications, repair quotes and invoices, contractor agreements, timesheets if doing own repairs, phone call logs with dates and who you spoke to, email chains, and written notes of all verbal conversations. Keep both digital and physical copies. This comprehensive record protects you if disputes arise, supports business interruption claims, and provides evidence if assessment or settlement is questioned. Good record-keeping dramatically speeds up claim resolution.

How long does a farm insurance claim take?

Timeline varies significantly based on claim complexity:

• Emergency repairs: Pre-approval often within 24-48 hours for urgent temporary repairs
• Simple claims: 2-4 weeks for straightforward claims with clear documentation (small equipment damage, minor building repairs)
• Standard claims: 4-8 weeks for claims requiring assessor visits and contractor quotes (moderate building damage, equipment replacement)
• Complex claims: 2-6 months for major claims involving multiple assessments, engineering reports, or complicated valuations (major building damage, large equipment losses)
• Disputed claims: 6-12+ months if disagreements require negotiation, independent assessment, or dispute resolution processes

Good documentation and prompt response to insurer requests significantly speed up processing.

What happens immediately after I report a claim?

Your insurer will: assign a claim number and claims handler, confirm your policy coverage and status, provide initial guidance on emergency measures, arrange assessor visits if needed, and outline next steps and documentation requirements. Within 24-48 hours, expect a formal acknowledgment and initial assessment of whether the claim appears covered. For urgent situations (uninhabitable buildings, business-stopping equipment damage), insurers often provide immediate interim payments for emergency accommodation, rental equipment, or urgent repairs. Keep your broker or claims handler informed of any developments, additional damage discovery, or urgent needs during this initial period.

Why do some claims take so long?

Extended timelines often result from: incomplete documentation requiring back-and-forth communication, complex damage requiring specialist assessments (engineering reports, soil contamination analysis), multiple contractors needing to quote, disputes over coverage interpretation or damage cause, waiting for parts or specialist repair services, weather preventing damage assessment or repairs, coordinating with third parties (other insurers, authorities, EQC), or reassessment when hidden damage is discovered during repairs. Proactive communication with your insurer, prompt responses to information requests, and comprehensive initial documentation minimize delays.

Can I get partial payments while my claim is processed?

Yes, insurers often make interim or progress payments for large claims. For major building repairs, payments may be released in stages as work progresses. For business interruption, monthly payments can maintain cash flow during recovery. For equipment replacement, advance payments sometimes allow equipment purchase before final settlement. Request interim payments if financial strain is significant - insurers understand farms need cash flow to continue operating. Document why interim payment is needed. These are advances against your final settlement, not additional payments. If the final claim is less than interim payments, you may need to repay the difference.

What does a loss assessor do?

Loss assessors (also called loss adjusters) are professionals appointed by insurers to investigate claims, assess damage extent and cause, verify the damage resulted from a covered event, estimate repair or replacement costs, review documentation and proof of ownership, prepare detailed reports for the insurer, and recommend settlement amounts. They're independent professionals providing objective damage assessment. Be cooperative and honest with assessors - they're fact-finders, not adversaries. Provide access to all damaged areas, answer questions truthfully, and provide all requested documentation. Their reports heavily influence claim decisions and settlement amounts.

Can I hire my own assessor?

Yes, you can hire a public loss adjuster (sometimes called loss adjusters) to represent your interests. Unlike insurer-appointed assessors who work for the insurance company, public adjusters work for policyholders. They assess damage, document claims, negotiate with insurers, and maximize settlements. This costs 5-15% of settlement (fee structures vary), but can significantly increase payouts on complex claims. Public adjusters are particularly valuable for very large claims, complex damage scenarios, specialty assets, or when you disagree with the insurer's assessment. Many farmers find brokers provide adequate advocacy without needing separate public adjusters.

How are livestock claims assessed?

Livestock claims require veterinary reports confirming cause of death or injury. The vet assesses whether death resulted from a covered event (accident, illness, disaster) and documents findings. For valuable breeding animals, multiple assessments may be required. Carcasses must usually be retained for insurer inspection unless disposal is urgent for health reasons (photograph carcasses thoroughly if disposal is necessary). Stock are valued at policy terms - market value, agreed value, or per-head amounts. For disease claims, additional testing or government veterinary service involvement may be required. Timely vet involvement and thorough documentation are critical for livestock claim success.

What if the assessor's valuation seems too low?

Challenge valuations you believe are incorrect. Provide evidence: independent valuations or quotes, proof of recent similar sales or purchases, specifications showing why your items are more valuable than assessor estimated, or expert opinions on replacement costs. Ask the assessor to explain their methodology. Engage your broker to negotiate. Request reassessment if significant new information is provided. For disputes, you can request independent assessment or engage dispute resolution. Don't accept settlements you believe are unfair - insurers expect some negotiation. However, ensure your challenges are fact-based rather than emotional. Solid evidence of value discrepancies is essential.

How are farm insurance claims settled?

Settlement methods vary by policy and claim type:

• Cash settlement: Insurer pays you the claim amount minus excess, and you arrange repairs or replacement yourself
• Replacement: Insurer arranges and pays for replacement items directly
• Repair: Insurer appoints contractors to repair damage and pays them directly
• Indemnity payment: Payment based on depreciated value rather than replacement cost
• Managed repair: Insurer uses preferred contractors with guaranteed work

Understand which settlement method applies to different asset types in your policy. Some offer choice; others specify particular methods.

Can I choose my own contractor for repairs?

Usually yes, though some policies require using insurer-approved contractors. If you have contractor preference, obtain quotes and submit them to your insurer for approval. Insurers may require multiple quotes for comparison. Using insurer-preferred contractors sometimes offers advantages: guaranteed work, direct payment to contractors, potentially faster service, and streamlined claims management. However, your own trusted contractors may understand your farm better and deliver superior work. Discuss contractor options with your insurer early. Whoever does the work must be qualified, licensed, and insured themselves.

What is a cash settlement and should I take it?

Cash settlements pay you the claim value directly, then you manage repairs or replacement yourself. Advantages include flexibility in repair timing and methods, ability to choose contractors, potential cost savings if you can repair cheaper than quoted, and option to upgrade or change specifications. Disadvantages include assuming all responsibility for quality and completion, no warranty from the insurer on work done, risk of cost overruns if repairs cost more than settlement, and loss of GST benefits (registered farmers). Cash settlements work well if you're hands-on, have trusted contractors, or want flexibility. They're riskier for complex repairs where costs are uncertain.

How does GST work with farm insurance settlements?

For GST-registered farmers, settlements are generally paid excluding GST, as you can claim GST back on repairs or replacements. If settlement is $100,000, you receive $100,000, spend $115,000 including GST, and reclaim the $15,000 GST. If you're not GST-registered, settlements should include GST as you cannot reclaim it. Always clarify GST treatment with your insurer at settlement. Incorrect GST handling can leave you short-funded. This particularly matters for cash settlements where you're managing your own repairs. Your accountant should verify GST treatment in settlement agreements before you sign.

What happens to my excess?

Your excess (or deductible) is deducted from every claim settlement. If your claim is $50,000 and excess is $5,000, you receive $45,000. For multiple items damaged in one event, typically one excess applies (not per item). However, some policies have separate excesses for different coverage types - one for buildings, another for equipment. Natural disasters may have specific higher excesses. Review your policy schedule for excess amounts. If damage is less than your excess, you won't receive any payment. Excess is paid either directly to contractors (deducted from insurer payment to them) or by reducing your cash settlement.

What should I do if my claim is denied?

Request a detailed written explanation citing specific policy clauses. Review your policy wording carefully against the denial reasons. Gather additional evidence addressing the denial reasons. Engage your broker to advocate and negotiate. If you disagree, escalate within the insurance company's internal complaints process. Consider independent legal or expert advice for large claims. Lodge complaints with the Insurance and Financial Services Ombudsman Scheme (IFSO) if internal processes fail. Document all communications. Many denials are reversed when policyholders provide additional information or clarification. Don't assume denial is final - challenge it if you believe it's wrong.

Can partial claim denial occur?

Yes, insurers may approve parts of a claim while denying others. For example, approving building damage from a storm but denying damage from concurrent flooding if flood coverage is excluded. Or approving theft of some items but denying others due to insufficient proof of ownership. Partial denials also occur when settlement amounts are disputed - the insurer accepts liability but disagrees on value. Understand exactly what is denied and why. You can accept the approved portion while disputing denied elements. Partial settlements don't prevent pursuing the remainder through dispute resolution.

How do I dispute a claim decision?

Follow this escalation process: First, discuss concerns with your claims handler or broker to resolve misunderstandings. Second, escalate to the insurer's claims manager or complaints team. Third, utilize the insurer's internal dispute resolution process. Fourth, engage independent experts (valuers, engineers, public adjusters) to support your position. Fifth, complain to Insurance and Financial Services Ombudsman Scheme (IFSO) - free, independent dispute resolution for insurance disputes up to $200,000 (higher in some cases). Sixth, consider legal action for very large disputes not resolved through IFSO. Keep detailed records throughout. Most disputes resolve before reaching formal processes through negotiation and additional information.

What is the Insurance Ombudsman and how does it work?

The Insurance and Financial Services Ombudsman Scheme (IFSO) is a free, independent dispute resolution service for insurance complaints. It investigates complaints impartially, reviews all evidence from both parties, and makes binding decisions (for insurers - you can still pursue legal action if dissatisfied). IFSO handles disputes up to $200,000, with discretion for higher amounts. The process typically takes 3-6 months. You must first attempt resolution with your insurer before IFSO will investigate. IFSO can award compensation, require claim payment, or direct insurers to take specific actions. It's an effective avenue for most farm insurance disputes without legal costs.

Should I get legal advice for claim disputes?

For large or complex disputes, legal advice is worthwhile. Lawyers specializing in insurance law understand policy interpretation, coverage disputes, and negotiation strategies. They can assess claim strength, advise on evidence needed, negotiate effectively with insurers, and represent you in formal disputes. Legal fees are an investment - a lawyer might increase your settlement by far more than their fees. Some lawyers work on conditional or success-based fees for strong cases. For smaller disputes, broker advocacy and IFSO may be sufficient without legal costs. Weigh potential claim value against legal costs when deciding.