Insurance
Protecting your Investment
Plantation trees are valuable, and become more so over their lifetime. Recognising this, most private forest growers insure their trees against fire, windstorm and other selected perils.
Forest insurance is a specialised service offered by only a few insurers. The insurance market is cyclical. When there is surplus underwriting capacity, insurance is easy, to obtain and rates fall. At other times, insurers withdraw capacity, and premiums rise. The effects of this market cycle can be exaggerated by the fact of there being so few insurers.
Coverage
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.
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