Features of the Scheme
A plantation can be insured for total and partial loss as a result of fire, lightning, windstorm (cyclone) and aircraft damage. The Lloyds of London forestry policy is not subject to co-insurance average which means that if the value of the property insured exceeds the sum insured, then you would be required to contribute proportionally to each and every loss.
Agreed value policy
The value of the plantation is agreed at the time the cover is placed, depending upon species, age, location, condition and management. In the event of a loss, the plantation owner is paid the agreed value.
Recommended valuation tables are available for Pinus radiata and Eucalyptus globulus, and are published in the insurance proposals by the brokers. The valuations are prepared by an independent national firm of consulting foresters and endorsed by Australian Forest Growers. Valuations in the range of high, medium and low are available in most states. Members have the right to submit different valuations for particular circumstances or other species for the underwriter's acceptance.
Qualification for acceptance
A plantation is automatically accepted for insurance at the rates current for the Scheme subject to a period of qualifying membership of Australian Forest Growers, provided the plantation meets the requirements for management and firebreaks.
There are set dates each year by which a commitment to insure must be made.
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