This fact sheet is one of a series that looks at the steps you can take to give yourself the best chance of fixing or replacing your property and belongings if they're damaged or destroyed in a natural disaster, such as a bushfire, flood or storm.
See Fact Sheet 18: Glossary for definitions of words and terms that are in bold text.
To find other fact sheets in the series go to www.InsuranceCheckup.tas.gov.au or visit your local Service Tasmania for an info pack.
The impact of natural disasters on rural property owners
Many people own property in rural settings in Tasmania. These properties include residential homes, hobby farms, lifestyle properties, working farms or just acreage in a rural area.
If you own one or more of these types of properties, it's important to know that ordinary home and contents insurance might not cover all of the activities that take place, or the structures that are on the site.
For example, if you have a hobby farm and it produces some form of income, has assets such as mechanical tools and vehicles, and livestock or crops, you may need business or farm insurance to cover you in the event of a natural disaster.
It's also important to have enough coverage for everything on the site that is your responsibility, e.g. private bridges, fences and power poles, as well as your farm property, farm liability and farm vehicles.
Natural disasters in Tasmania continue to have a huge impact on rural residents, businesses and primary producers. People have had to deal with consequences including damage to machinery, fencing, irrigation and infrastructure, loss of crops, livestock and feed, as well as power outages and property access issues. Private bridges have been washed away during floods, in some cases leaving owners with no way at all to access their property. You can read the case studies on the Insurance Checkup website at www.InsuranceCheckup.tas.gov.au for personal stories about this.
Insuring your rural property
If you own a property in a rural area, you definitely should consider what you stand to lose if things go wrong.
As with all types of insurance, it is important to regularly check whether you have enough of the right sort of cover to give you financial support if something unexpected, including a natural disaster, affects you.
Make sure that you put an accurate value on the assets you are insuring. When you buy an insurance policy, you and your insurer agree on the maximum amount they will pay you if an insurance claim you make is successful.
If you have agreed on an amount that is less than the value of your assets, you might be underinsured, which will mean you could struggle financially if they are destroyed or damaged in a natural disaster that is covered under your policy (see Fact Sheet 4: What it would cost you to replace everything you own).
Types of insurance available for rural properties
Insurers offer a wide range of insurance policies that may suit you as a rural property owner, from straightforward home and contents cover to a bundled farm insurance 'package' that might include combinations of:
- home and contents insurance
- farm machinery insurance
- farm vehicle insurance
- livestock, fencing and hay insurance
- farm loss of income and business interruption insurance (see Fact Sheet 6: Insuring your business against natural disasters).
Make sure you carefully check the inclusions and exclusions in any insurance package you are considering, as not all situations will be covered if your rural property is affected by a natural disaster.
When you are responsible for other structures on your property
As an owner of a rural property, you may stand to lose more than your home and belongings or your farm in a natural disaster. If you have other structures on your property (e.g. bridges, fences, power poles), it is possible that they are also your responsibility when it comes to insuring and maintaining them. It is up to you to check (see Fact Sheet 8: When you could be responsible for roads, bridges, fences and power poles).
Choosing the right insurance and insurer for your rural property
Considering your insurance options
It's a very good idea to weigh up the cost of all types of insurance for your rural property against the potential financial hardship you could experience after a disaster.
For these reasons, it's really important to carefully read the policy's Key Facts Sheet and Product Disclosure Statement and to ask your insurer to clarify with you exactly what is covered and not covered (see Fact Sheet 13: Finding and comparing insurers and insurance policies).
Finding a general insurer
To find an insurer that offers different types of rural and farm insurance, you can explore the Insurance Council of Australia's free Find an Insurer service at www.findaninsurer.com.au.
Finding an insurance broker
Some insurance products, including farm packages, are only available through an insurance broker. This often suits people who have considerable assets or have different-than-standard insurance needs. While using an insurance broker is not free, ultimately their fee forms part of the overall premium that you pay for your cover. To find out more about insurance brokers and to find one in your area, go to the Insurance Council of Australia's Need a Broker website at www.needabroker.com.au or phone 1300 5310 73.
Where to go for guidance and support
Business Tasmania (phone 1800 440 026) is the Tasmanian Government's contact point for businesses during and after disasters or other emergencies, offering guidance and support. You can also go to their online resource at www.business.tas.gov.au for more information about all aspects of starting and running a business, including what to think about when insuring your business and where to go for assistance.
The website also offers a comprehensive and simple-to-use Business Continuity Plan to help you to know your risk, get ready, take action, and reassess, recover and learn from a natural disaster.
If you are a primary producer, fisherman, or operate a small rural business, you can also contact Rural Business Tasmania (1300 883 276) for information about its rural business programs, financial counselling service and relief fund.
If you are a farmer and want to know about services and support available to you, check FarmHub at www.farmhub.org.au.
Resources
For general information, and for calculators and other tools to help you manage your own insurance:
- Understand Insurance: www.understandinsurance.com.au
- Find an Insurer: www.findaninsurer.com.au
- Money Smart: www.moneysmart.gov.au
Important notice
This fact sheet gives you basic and general information only. It does not cover every situation or everything you may need to know about insurance. It does not take into account your personal circumstances. Make sure you carefully read Key Facts Sheets and Product Disclosure Statements. Ask your insurer as many questions as you need in order to understand how your insurance policy will work for you. Use other tools available to you and seek professional advice if needed.
Information in these fact sheets has been drawn from a number of publicly available Government and non-Government resources.
This project has been jointly funded by the Commonwealth and Tasmanian Governments under the Disaster Recovery Funding Arrangements.