How much does farm insurance cost in Australia?

There isn't one standard price for farm insurance in Australia.

The cost can vary a lot from one farm to another because insurers look at where your farm is, what you do there and what you want covered.

A hobby farm with a house, shed and tractor can have very different insurance needs from a large working farm with several buildings, expensive machinery, livestock and vehicles.

The best way to know what your farm could cost to insure is to get quotes based on your own farm and what you need covered.

What affects the cost of farm insurance?

Insurers look at a few different things when working out your price, including where your farm is, what you want covered, what type of farming you do and whether you've made claims before.

Here are some of the main things that can affect the price.

1. Where your farm is located

Where your farm is can make a big difference to what you pay.

Insurers may look at things like bushfire, storm and flood risk in your area.

Two farms with similar buildings and equipment can still receive different quotes because they are in different locations.

2. The value of the things you're insuring

The more you need covered, the more you may pay.

Depending on the policy, farm insurance can include things such as:

• farm buildings and sheds
• machinery and equipment
• tractors and farm vehicles
• livestock
• hay, grain or other farm property
• the farmhouse and contents
• liability cover

How much cover you choose also matters.

For example, insuring a $50,000 tractor is different from insuring several pieces of machinery worth hundreds of thousands of dollars.

Try to be realistic about what your property and equipment are worth. Putting in lower values just to get a cheaper quote could leave you short if you need to make a claim.

3. What type of farm you have

There can be a big difference between a hobby farm and a large working farm.

Insurers may look at what you do on the farm and how much farming you do.

This could include cattle or sheep, cropping, dairy, vineyards, orchards, poultry, mixed farming or hobby and lifestyle farming.

Some farms also have activities that aren't traditional farming.

For example, you might offer farm stays, host visitors, provide agistment or run another business from the property. Make sure you mention these when getting a quote, as they can affect the cover you need and what you pay.

4. The cover you choose

Farm insurance is often made up of different types of cover rather than one fixed package.

Depending on the insurer and policy, you may be able to cover things like farm property, machinery, vehicles, liability and your farmhouse.

The more you choose to cover, the more you may pay.

This is why the cheapest quote isn't always the best one. A cheaper policy may not include the same cover as a more expensive one.

5. Your machinery and vehicles

Farm machinery can be worth a lot of money, so it can have a big impact on your insurance cost.

You may need to give details about tractors, harvesters, implements and other equipment, including what they're worth and how you use them.

Some policies treat machinery breakdown separately from accidental damage, so it's worth checking exactly what each quote includes.

6. Your claims history

If you've made insurance claims before, this can affect what you're quoted.

Make sure the information you give is accurate when you get a quote.

7. The excess you choose

The excess is the amount you may need to pay if you make a claim.

A higher excess can sometimes mean a lower premium because you're agreeing to pay more if you make a claim.

That doesn't automatically mean a higher excess is better.

Before choosing a higher excess just to save money, make sure it's an amount you could afford to pay if you needed to claim.

Can you reduce the cost of farm insurance?

There may be ways to bring the cost down, but the cheapest policy isn't always the right one.

It can be worth:

• comparing more than one insurer
• checking whether you're paying for cover you no longer need
• reviewing your excess
• making sure the details about your farm are up to date
• asking whether changes you've made to reduce risk on the farm could affect your price
• reviewing your cover when your farm, machinery or activities change

Be careful about lowering the value of what you're insuring just to get a cheaper quote. You could end up without enough cover if you need to make a claim.

What do you need to get a farm insurance quote?

It helps to have some basic information about your farm ready before you start.

This can include your farm address, the type of farming you do, the size of the farm, details of your buildings, machinery and vehicles, and what you want covered.

You may also be asked about livestock, other activities on the property and your previous insurance or claims history.

You won't necessarily need every detail straight away, but having the basics ready can make getting and comparing quotes easier.

Don't compare farm insurance on price alone

Price matters, but two quotes aren't always covering the same things.

Before choosing a policy, check what's covered, how much you're covered for, the excess you'll need to pay and any important exclusions or limits.

It's also worth checking whether something you need is included as standard or needs to be added separately.

Read the relevant policy documents before deciding which cover is right for you.

So, how much will your farm insurance cost?

It depends on your farm.

A small hobby farm and a large working farm can have completely different insurance needs, so there isn't one Australian average that will tell you what you should expect to pay.

The most useful comparison is between quotes based on your own farm and similar levels of cover.