Do you have a small farm operation, or even just a generously sized backyard? Hobby farm insurance is a common type of cover for many Aussies who have lifestyle blocks or small-scale farming. Understanding your level of cover is essential in finding the right insurance policy.

What is classed as a hobby Farm?

A hobby farm is a small rural property between 2 to 50 hectares. A hobby farm in Australia, usually refers to non-commercial, personal farming activities, where the farm is primarily used for enjoyment, lifestyle, or supplementary income. A hobby farm insurance policy can include various elements from farm buildings and farm machinery to farm liability cover.

The Australian Taxation Office (ATO) sets out clear guidelines to distinguish between hobby farms and commercial farming operations. The key factor the ATO looks at is whether the farm generates a primary income. If farming activities are your primary source of income, then it is likely to be considered a commercial farm, subject to different tax laws and regulations.

What Does Hobby Farm Insurance Cover?

Coverage for your hobby farm can vary from insurer to insurer, but some common coverage areas include:

• Domestic home property (your home and contents)
• Farm Property/Infrastructure (sheds, stables, fences, water tanks)
• Liability
• Farm vehicles and machinery
• Theft of Farm Contents

Want to discuss your insurance options? Find out more about Farm Insurance and contact our team today.

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Hobby Farm Vs Home Insurance

While your general home insurance policy will cover your house and contents, hobby farm insurance has some key differences including:

• Property size: Most standard home insurance will not cover larger properties (over 2 Hectares).
• Income: If your hobby farm has an income, this can be covered under your hobby farm insurance policy.
• Coverage extent: Hobby farm insurance will cover various farming activities that home insurance won't.

If you have questions about what your policy covers, refer to your Product Disclosure Statements, or request a copy from your insurance broker.

Find a Hobby Farm Insurance Broker today

Do you need insurance quotes for your small rural farm property? Contact Peter Cameron Insurance Brokers today. Drop into our Armidale office, give us a call, or even submit a quote online by clicking the button below.

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Hobby Farm FAQs

What farm machinery does a hobby farm cover?

You can choose to insure farm machinery and equipment such as tractors, ride-on mowers, or quad bikes, but this must be added into your policy.

Does a hobby farm policy cover farm tools?

Many hobby farm insurance policies can cover farm tools, depending on the level of cover you choose. You may also be able to add optional extras, such as theft cover, for additional protection.

Always refer to your Product Disclosure Statement or discuss your cover with your broker if you feel you might be underinsured.

Does hobby farm insurance cover livestock?

Hobby farm insurance may cover livestock, depending on the policy and level of cover selected. Many insurers also offer optional add-ons specifically designed to protect livestock.

Can you get crop insurance with a hobby farm?

Yes, some insurers offer crop insurance as part of a hobby farm policy or as an optional add-on. Availability and cover will vary between insurers.

What is the claims process for an accident or damage on my farm?

Always contact your insurance broker to notify of the claim. From property damage to veterinary costs, always consult a broker if you need help with identifying a claim.

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