Most home and contents insurers have a limit on the land size allowed under their standard home and contents policy. Five acres is generally the limit before they start to get antsy about the use of the property, liability exposure and farm machinery for example.

If you’re on acres, even if you don’t have animals or farm buildings, you still have a liability exposure on the land. Think someone falling into your dam, or injuring themselves on something lying in the back paddock. You’ve also likely to have more fencing than the average suburban house block, and if you’ve ever replaced a large enough portion of fencing, you know how expensive that can be!

Why do I need a special policy?

There are policies out there that are specifically geared for hobby farm or lifestyle property risks. They take into consideration how you use the property and what physical property you want to cover.

A small or hobby farm policy will cover off your home and contents under a domestic section (with all the bells and whistles of a standard home and contents policy available if you want those), as well as any non-domestic property (sheds, stables etc), machinery and improvements, your public liability and a host of other standard inclusions.

Can I have animals or livestock? Or earn an income from the property?

If you have a few horses, or maybe a small handful of sheep to keep the grass down, you have added liability exposure than if you didn’t have animals or livestock. Consider what would happen if your fences weren’t in good condition and a horse got out onto the road, causing a car accident. You could be held personally liable for the damages. This is where your standard home and contents policy is unlikely to fit the situation adequately and a farm policy is a better option.

A small or hobby farm insurance policy will also allow you to earn a small amount each year before you’re looking at needing a primary producing level policy. You might earn a bit of money from agistment, or raise a small amount of sheep or cattle to sell each year and this is usually fine however all insurers have different amounts you can earn before they don’t class you as a hobby or small farm any longer.