Direct insurer Achmea Australia says flood cover is “built in” to its farm policies, while other leading underwriters have confirmed they don’t cover the risk.

As previously reported, brokers have raised concerns about the lack of flood cover for rural properties.

Farm specialist Achmea contacted insuranceNEWS.com.au to say it does offer flood cover – but it doesn’t sell its products through brokers.

“Achmea Australia uses the standard industry definition for flood and provides cover for the farmhouse, vehicles, other agricultural buildings and contents,” COO Kirsten Staveley said

“We offer this to the agricultural industry as it aligns with our purpose of keeping farmers farming.

“The destruction caused by the recent floods has served to remind us of the essential nature of food security, reinforcing the value of the agricultural sector and the importance of adequate insurance.”

Ms Staveley declined to comment on the reluctance of other insurers to cover flood, but said high flood risk on a property would need to be assessed.

Achmea does not work with brokers, instead sending its own farm insurance specialists out to understand clients’ needs.

“We partner with farmers directly,” Ms Staveley said.

“We are not in the business of paying commissions to brokers to distribute our product.”

Recently released Australian Prudential Regulation Authority statistics show that for the 12 months to June this year, Achmea reported gross earned premium of $69 million and a net loss of $27 million.

Meanwhile, QBE, CGU and Allianz confirmed that they do not offer flood cover for farms.

The Insurance Council of Australia says in flood prone areas the cost of flood cover is “increasingly unaffordable”.

“A particular challenge for insurers is their ability to price flood risk on larger properties where the risk of flooding may vary on different parts of the property,” a spokesperson said.

“Subsequently many insurers do not offer flood cover for houses located on these properties.”