Farm Insurance :: News

Share this news item!

Quake Damage Claims Dismissed Over Previous Faults

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Two farmhouses seeking insurance payouts for earthquake damage have had their claims denied, following a decision highlighting the role of pre-existing issues.

The company behind the claim stated that the properties were impacted by a 5.4-magnitude earthquake that occurred in November 2018. Although the earthquake's epicenter was approximately 45 kilometers away from the buildings, Geoscience Australia specified the evident damage radius to be no more than 27 kilometers from the epicenter.

In their defense, the claimant's engineering expert conceded that the buildings were situated outside the primary damage zone but contended that the earthquake’s vibrations had unleashed energy beneath the geological formations on which the houses stood.

The expert identified "preexisting or dormant conditions" in the properties, including previously repaired damage which, according to him, reopened due to ground movement prompted by the quake, also leading to the manifestation of new fractures.

Meanwhile, Allianz, the insurance provider, enlisted a forensic civil and structural engineer who assessed the damages. His findings revealed brickwork fissures in multiple sections of one property, referred to as House H, and evident cracks within the garage of the second property, termed House P, in addition to a separation between a storeroom and the home.

The engineer hired by Allianz attributed the damage to prolonged foundation instability and deterioration of the mortar used in the brickwork, rather than to the seismic event.

The Australian Financial Complaints Authority (AFCA) upheld the insurer’s position, noting that both engineers corroborated the presence of damage similar to what was being contested even before the 2018 earthquake, specifically in House H.

AFCA further mentioned that updates made to certain rooms within the house remained unaffected, while external brickwork conditions pointed towards significant wear and tear, contributing to the losses. Comparable remarks were also made in regard to House P.

"While both experts agree it is conceivable for House H to incur earthquake-related damage under ideal conditions despite its location outside the designated impact radius, the insurer's expert refuted the existence of such conditions in this case," stated the adjudicator from AFCA.

"Even if the earthquake were recognized as being a proximate cause of the damage to House H, it would coexist with other excluded factors (wear and tear, prolonged structural movement)."

"Consequently, the insurer maintains the right to invoke those exclusions as a basis for denying the claim," AFCA concluded.

Published:Thursday, 1st Aug 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

WFI Insurance Joins Forces with Farmsafe Australia to Boost Farm Safety Standards

16 Dec 2025: Paige Estritori

In a significant move to enhance safety within the Australian agricultural sector, WFI Insurance has announced a partnership with Farmsafe Australia. This collaboration is designed to raise awareness about farming hazards and advocate for the adoption of safer work practices among farmers. - read more

Argis Underwriting Partners with Pacific International to Expand Farm Insurance Offerings

16 Dec 2025: Paige Estritori

Argis Underwriting has announced a new partnership with Newcastle-based Pacific International Insurance, enabling the company to resume offering farm insurance coverage across Australia. This development comes after Argis ceased providing new business and renewal terms on its Farm Extra Insurance in April, following the conclusion of a five-year arrangement with HDI Global Specialty. - read more

WFI Insurance Reports Significant Decline in Farm Liability Claims

16 Dec 2025: Paige Estritori

WFI Insurance has reported a notable decrease in farm liability claims across most categories, signaling a positive trend in safety practices within the Australian agricultural sector. The insurer observed a 75% reduction in falls from height over the past year, alongside a 30% decline in impact injuries, marking the lowest level in four years. - read more

WFI Insurance Rewards Sustainable Farming with Premium Discounts

08 Dec 2025: Paige Estritori

In a significant move towards promoting sustainable agriculture, WFI Insurance has announced a new initiative offering premium discounts to farmers who obtain AgCarE certification. This program, developed by AgForce, aims to recognise and reward farmers implementing eco-friendly practices on their properties. - read more

IAG and Ag Guard Forge Partnership to Elevate Crop Insurance for Australian Farmers

08 Dec 2025: Paige Estritori

In a significant development for Australia's agricultural sector, Insurance Australia Group (IAG) has announced a strategic partnership with Ag Guard, a specialist rural underwriting agency. This collaboration will see Ag Guard managing the underwriting for IAG-owned CGU and WFI's crop insurance portfolios starting June next year. - read more

AFCA Mandates Higher Payout for Farmers in Flood Damage Dispute

08 Dec 2025: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has recently ruled in favour of a farming group, mandating that insurer Achmea increase its payout for flood damage claims. This decision underscores the critical importance of thorough and expert assessments in the insurance claims process. - read more

Click for more Insurance News

Farm Insurance Articles

Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs

For Australian farmers, having the right insurance coverage isn't just a safety net—it's an integral part of sustaining their livelihood. Natural disasters, unpredictable climate conditions, and the inherent risks of agricultural production underline the critical importance of robust insurance for the agricultural community. As farmers navigate the complexities of insurance, understanding the basics becomes the first step toward securing their assets and ensuring the continuity of their operations. - read more

5 Key Types of Farm Insurance Policies for Australian Farmers

As an Australian farmer, understanding the necessity of farm insurance is crucial to protecting your livelihood. The agricultural sector is inherently fraught with risks, ranging from natural disasters to the unpredictable market. Farm insurance serves as a vital safety net, safeguarding your farm's infrastructure, crops, livestock, and more. - read more

How to Choose the Right Farm Insurance Policy for Your Needs

Farm insurance is a type of coverage designed specifically for the unique risks and operations involved in farming. It encompasses protection for farm dwellings, equipment, livestock, and crops, offering a tailored approach that reflects the diverse needs of farm owners. This coverage can help safeguard your livelihood against unforeseen events that could disrupt farm operations or result in significant financial losses. - read more

The Ultimate Guide to Affordable Farm Insurance for Australian Farmers

Welcome to 'The Ultimate Guide to Affordable Farm Insurance for Australian Farmers.' As stewards of the vast Australian countryside, farmers face an array of unique challenges and risks. Every day, they grapple with the forces of nature, the volatility of the markets, and the complexities of modern agricultural operations. - read more

Income Protection for Farmers: Ensuring Stability Through Tough Times

The world of farming is one filled with uncertainties. Weather conditions, market prices, and various other factors can create a highly volatile income stream for those within the agricultural sector. This unpredictability can lead to financial instability that impacts not only the farmers themselves but also their families and the larger rural community. - read more

The importance of income protection insurance for hobby farmers

As a hobby farmer, you may not rely on your farm for your main source of income. Perhaps you have a full-time job but enjoy farming as a way to supplement your income and pursue a passion. However, just because farming is a hobby does not mean there aren't risks involved. In fact, hobby farmers face many of the same risks as commercial farmers, such as injury, illness, loss of crops or livestock, and damage to property. - read more

Need a Quote?

Start your free farm insurance quote comparison here.

Knowledgebase

Flood Insurance:
A specific type of property insurance that covers losses and damage caused by flooding.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.