Apia has been a good insurance company for us, we have insured with them for years and they have been mostly prompt with vehicle-related claims.
That all changed this week.
Apia told us they won’t renew our home insurance policy because our property has “farming activities”.
They did not offer us an alternative farm policy.
The hobby farm status has not been a problem before, but perhaps with rural properties going up in flames across Australia insurers are cutting risk.
We run a few sheep and horses.
Excess lambs are sold each year, but that’s it for “farming activity”.
If we are lucky the lamb sales pays the annual hay and vet bills and the ongoing fence, irrigation, trough and dam repairs.
Usually, livestock on a small “hobby farm” runs at an annual loss.
An important reason to maintain livestock on any rural property, aside from being a source of cheap meat, is to keep the grass down, to reduce summer fire risk. Livestock are therefore good for home insurers, as they reduce fire risk.
I have appealed the decision with Apia, we’ll see what happens.
Getting some quotes meanwhile.
If the quotes are excessive because of “farming activities”, this would be an incentive to remove the animals.