+ May I join at any time?
Within reason - yes.
Normally cover can be arranged within days if you send us a completed proposal form, ideally with a map - a species map as used for Forest Service grant or felling licence applications is very helpful - if you don't have one you should be able to get it from your forester or from Forest Service (quoting the contract number).
+ How should I value my woodland or forest for insurance cover?
The insurable value depends on
(a) area;
(b) age;
(c) species and Yield Class (a measure of productivity - your forester will guide you) and
(d) likely net revenues (basically what will you get for your timber).
When you give us basic details we run them through a computer model which factors in weighted average timber prices and we come up with a figure, called the Specified Value. This is only a guide; your forest manager or advisor should be consulted, particularly as the forestry ages.
You do not need to insure the land value and you need not insure for loss of premium - the annual premium will be restored after you re-plant. However, you should consider Reconstitution insurance to cover the cost of replanting should damage occur. If you do not replant you could have significant liabilities to repay grants and premiums to the Forest Service.
+ The suggested value seems low?
With the basic cover you are only insuring loss of investment growth - not the potential market value which would also include land and any premium income.
In the event of a loss you would normally replant and therefore still have the land value and future premium income. Reconstitution cover will help to ensure that you can meet the costs of replanting and so continue to receive grant and premium payments.
+ Do I need Reconstitution Cover?
If your forest is less than 20 years old you should seriously consider Reconstitution Cover.
Forest Service confirmed the withdrawal of Reconstitution grants for restoration of damage by fire or wind in March 2009. Forest Service, the Irish Farmers Association and the Irish Timber Growers Association have recommended that forest owners should have Reconstitution Cover.
The loss of your forest property would be serious - the financial exposure of having to repay grants and premiums could be catastrophic. So for peace of mind you should consider, with your forestry advisor, taking Reconstution Cover if you have not already done so.
+ Can I have Reconstitution Cover only?
Yes.
An excess of €250 applies. The amount indicated in any renewal or indicative quote is only an estimate of the likely costs - you should review that figure with your professional forestry advisor as to its adequacy. The insurer may cap the insurable sum per hectare.
+ Do I need windcover?
If your woodland has been roaded or thinned recently you should discuss the need for windcover with your forest manager or forester who will guide you on this.
If only some of the woodland has been thinned your Forester could break the woodland into compartments and send us a map with details such as area. We can amend cover on the relevant area so that you pay only what you need.
Windcover has an excess of €5,000 - in other words the first €5,000 loss is not covered.
+ Can I have just windcover (without fire cover)?
The short answer is no.
Technically you could have windcover without fire cover but this does not reduce the cost of cover. The risk of fire decreases as the crop gets older (and that is reflected in the premium) while the risk of wind damage increases sharply with the age so the rate reflects that.
Windcover is much more expensive than fire cover because a storm will be likely to damage a lot of property over a widespread area whereas a fire is normally contained within a property.
+ I have Public Liability already. Should I take it on your policy?
If you have a stand alone Public Liability policy for your forestry land then our scheme may well offer better value.
If you have a public liability for your farm or other property which extends to your forestry land, then it may be adequate to your needs. However, you may wish to contact us to check if our forest specific Public Liability cover is better suited to your needs.
+ Do I need to insure the land value?
No.
+ Do I need to insure for loss of premium?
No. If you have reconstitution cover this will cover the cost of replanting. Your premium will be restored once you replant to the appropriate standard.
+ I have heard about diseases affecting Japanese Larch and Ash. Can I insure against these?
No.
Insurance cover is not available for pest or disease damage. Keep yourself informed through Forest Service, Teagasc and other information sources as to how best to protect your crop.
