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Fire insurance
It is possible to insure farm trees and
timber plantations from fire, wind damage, frost and other
threats. Several companies offer plantation owners complete
insurance packages based on the forest’s agreed standing
and salvage value. An immature timber plantation’s value
can be calculated by compounding the costs incurred to that
date or by discounting the expected future value.
Plantation insurance can be expensive for small growers. They
might find it difficult to negotiate an agreed value for their
forest when its design and management are substantially different
to larger corporation owned forests. Farm foresters might
be able to include the replacement cost of their trees in
their property’s fire insurance. But if their trees burn
they will not receive a payment for their trees’ growing
time. Landowners should talk to their insurance agent about
their options. They should also make sure they have enough
insurance to cover their liability for damage done by a fire
that starts on their property.
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