Question 1

What are the main types of farm insurance coverage in New Zealand?

Accepted Answer

The main types include: Farm Buildings Insurance (covers structures like sheds, barns, and dairy facilities), Livestock Insurance (protects cattle, sheep, horses against death or injury), Farm Equipment Insurance (covers tractors, harvesters, and machinery), Public Liability Insurance (protects against third-party injury claims), Business Interruption Insurance (covers lost income), and specialized coverage like effluent system protection and crop insurance. Most farms need a combination of these coverages.

Question 2

Can I bundle different farm insurance types together?

Accepted Answer

Yes, bundling multiple coverage types into one farm package policy typically saves 10-25% compared to buying separate policies. Most insurers offer package deals that combine buildings, equipment, livestock, and liability coverage. Bundling also simplifies administration with one renewal date, one excess to track, and one policy document. However, ensure each coverage type has adequate limits - discounted packages sometimes include lower sub-limits than standalone policies.

Question 3

Which insurance types are legally required for farms in NZ?

Accepted Answer

New Zealand doesn't legally mandate farm insurance, but practical requirements exist: banks require comprehensive insurance for mortgaged properties, employers must have ACC employer coverage for staff, vehicles need road insurance if used on public roads, and public liability is effectively mandatory if you host visitors, run farm stays, or employ contractors. While not legally required, operating without adequate insurance exposes you to potentially business-ending financial risks.

Question 4

How do I know which insurance types my farm needs?

Accepted Answer

Assess based on your assets and risks: If you have buildings, you need buildings insurance. Livestock requires livestock coverage. Equipment and machinery need equipment insurance. If visitors or contractors access your property, public liability is essential. Consider business interruption if income loss would create hardship. Dairy farms need specialized coverage for milk spoilage and effluent systems. Our brokers can conduct a risk assessment to identify gaps in coverage and recommend appropriate insurance types for your specific operation.

Question 5

What's the difference between named perils and all risks coverage?

Accepted Answer

Named perils policies only cover specifically listed risks (fire, theft, storm, etc.). If a risk isn't named, you're not covered. All risks (or accidental damage) policies cover everything except specifically excluded perils, providing broader protection. All risks costs 15-30% more but offers better coverage, especially for equipment and machinery. For valuable assets like modern tractors or dairy equipment, all risks coverage is recommended. For older buildings or basic items, named perils may be cost-effective.

Question 6

Do farm insurance types have different excess amounts?

Accepted Answer

Yes, excess levels vary by coverage type. Standard excesses: buildings $500-$2,500, equipment $500-$1,500, livestock $500-$1,000, liability $0-$500. Specialized coverage may have higher excesses - flood claims often have $5,000-$25,000 excess, earthquake claims $5,000-$15,000. You can usually adjust excess levels - choosing higher excess reduces premiums by 10-30%, but ensure you have emergency funds to cover the excess if needed. Some policies have different excesses for different claim types.

Question 7

Can I add or remove insurance types during my policy period?

Accepted Answer

Yes, most insurers allow mid-term adjustments. Adding coverage (new building, additional livestock, purchased equipment) usually takes effect immediately or within 48 hours upon approval. Removing coverage may result in pro-rata refunds but check for minimum premium requirements. Major changes like adding livestock or equipment should be reported immediately to maintain continuous coverage. Some insurers charge small administration fees ($25-$50) for mid-term changes. Annual review at renewal is the best time for comprehensive policy adjustments.

Farm Insurance Coverage Types

Farm Buildings

Livestock Insurance

Farm Equipment

Public Liability

Insurance by Farm Type

Dairy Farm Insurance

Sheep Farm Insurance

Beef Cattle Insurance

Arable Farm Insurance

Lifestyle Block Insurance

Specialized Dairy Cover

Need Help Choosing the Right Coverage?