FMG understands that navigating insurance policies can be daunting when you’re starting out. FMG’s Head of Product & Planning, Zoe Morley answers some common questions from younger farmers and explains a few things to start thinking about.
When does my parents’ insurance stop covering my belongings?
If you’ve brought some new equipment, machinery, tools or other items you need to do your job and you’re living at home, cover under your parent’s contents insurance may not be enough to cover your new business assets. Talk to us about getting your own Material Damage policy.
I’ve just moved out of home— what do I need?
It’s important that you have your own contents policy. Even if you don’t think you own much stuff yet, and you’d just replace any items that are accidentally damaged yourself—contents policies also provide Liability cover. This means if you accidentally damage someone else’s property—your rental property is a good example, you’re covered. If you’re moving to a property that you own, a house replacement policy is essential.
What’s the right vehicle and cover for me?
Your vehicle is likely to be one of your first major assets, and it’s worth investing in one that also protects your greatest asset— you. Before buying a car, you can check the safety rating at www.rightcar.govt.nz. Safety ratings are the best way to know how well your vehicle will perform in a crash, the higher the rating—the safer you are on the road.
FMG’s Comprehensive commercial vehicle policy provides cover for your car, ute or agricultural vehicles. Depending on your job, you may want to consider including an optional benefit, which provides up to $20K to cover the cost of hiring a replacement vehicle or another contractor to complete work commitments if something happens to your vehicle.
Why should I consider taking out Life & Health cover when I’m young?
Life & Health cover tends to be cheaper when you’re younger, so it’s worth considering getting it in place. Once you have it, you can relax and forget about the ‘what ifs’.
Often people believe that because they are young and healthy, they don’t need cover and put it off until they’re older or start a family. But by that time you risk developing health conditions, or your lifestyle may change, making it harder and more expensive to put cover in place. More often than not pre-existing health conditions will not be covered— so the sooner cover is in place, the more conditions will be covered as you age.
It’s also important to remember that farming and growing are generally physically demanding industries to work in and often have higher incidence of accidents and injuries. While ACC does provide cover for accidents, it’s not designed to cover everything.
What else should I be thinking about now?
As your assets grow, your career in the rural sector progresses and your personal life changes, make sure you continue to get advice on what insurance cover will protect you, before the unexpected happens.