PREPARING YOUR FARM FOR SUMMER: WHAT THE LATEST CLIMATE DATA MEANS FOR YOUR INSURANCE
As the weather warms up across regional Australia, it’s time to turn our minds to the months ahead: reviewing insurance, preparing for bushfire, and thinking carefully about the risks this summer may bring. On the farm, that means checking that your cover still reflects what it would really cost to rebuild, replace or recover if disaster struck.
A new report released by Insurance Australia Group (Severe Weather in a Changing Climate, 3rd Edition, Nov 2025) highlights that “bushfires are an increasingly severe threat in Australia as climate change drives hotter, drier, and more fire-prone conditions.” For farmers, that makes early preparation, both practically and from an insurance perspective, more important than ever.
1. Review your sums insured: are they still realistic?
With construction costs, machinery prices and material shortages all rising, under-insurance is a real risk. The IAG report notes that rising temperatures and “shifting rainfall patterns are reducing soil and fuel moisture, creating continuous, fire-supportive landscapes”. These conditions can turn small fires into large-scale events very quickly, putting your infrastructure, machinery, heard and pasture at significant risk.
If you haven’t recently checked your dairy, sheds, fencing, livestock, machinery and home sums insured, now’s the time. What it cost to replace five years ago is unlikely to be enough today.
A good rule of thumb:
Get updated rebuild or replacement estimates from a builder or valuer;
Consider demolition, debris removal and temporary accommodation costs (depending on your policy, these may be included as additional covers on top of your sum insured for the asset);
Remember to include infrastructure like pumps, troughs and tanks - these can be overlooked but can also be essential for getting back on your feet.
2. Document your assets: it’s the quickest claim support you can have
If disaster strikes, having photos and an inventory makes the claim process smoother. Take a walk through your sheds, dairy, yards and home to record current equipment and contents. Store these files, along with receipts, invoices and valuations, securely online or share them with your broker so they’re easy to access if needed.
Insurers often require proof of ownership and condition, a quick 30-minute photo session can save hours (and stress) later.
3. Review your business continuity plan
The IAG report points out that recent bushfires have “displayed unprecedented behaviours, including overnight fire runs, pyrocumulonimbus events, and fire tornadoes, that challenge suppression efforts.”
That means that even well-prepared farms can find themselves severely fire damaged, suddenly cut off and/or unable to operate. Ask yourself:
If your dairy was damaged, how would you continue to milk? Could you continue to milk?
Do you have a plan for livestock movement, feed supply or generator power?
Have you reviewed whether your business interruption cover reflects the real costs of continued operation following a fire?
Your broker can help map these exposures and discuss what level of interruption or additional-cost-of-working cover is available.
4. Talk to your insurer or broker before summer peaks
The IAG data shows that “the frequency of megafires (fires > 1 million hectares) are projected to increase considerably compared to what has been seen in the past.”
At Dairy Protect, we’re already seeing the impact of the trends identified in the IAG Report on insurance practices. Insurers are continuously reviewing how they underwrite rural and regional properties, which makes early policy review and your own risk-mitigation practices critical.
A quick pre-summer conversation can make sure:
You’re clear on your bushfire excesses and conditions.
Temporary relocation and additional costs of operating are covered.
You understand and are comfortable with your level of coverage for damaged fences, hay, livestock, feed or milk production loss
5. Keep perspective: preparation builds resilience
The IAG Report’s authors summarised it well: “Although we cannot stop severe weather events from occurring, we can take meaningful steps to reduce their impacts.”
Insurance is one part of that preparation: not just a safety net, but a recovery tool that allows you to rebuild faster and protect the future of your business.
At Dairy Protect, we work with dairy farmers every day to understand how these risks translate on-farm and to make sure insurance keeps pace with the realities of farming in a changing climate.
6. Key Steps You Can Take
The climate outlook is shifting, more extreme fire weather, longer seasons and faster-moving events, but the actions you take now can make all the difference when the unexpected happens.
Before summer gets busy, take a few hours to:
Review your sums insured
Update your photos and asset records
Check your business continuity plan
Talk to your broker
Your future self, and your farm, will thank you for it.
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the Product Disclosure Statement (PDS) for any product that the information relates to before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Dairy Protect make no representation as to the accuracy or completeness of the information. All information is subject to copyright and may not be reproduced without the prior written consent of Dairy Protect.