Your rights when a claim is refused
What an insurer has to tell you, and where the Financial Ombudsman Service fits if you disagree with the outcome.
Read the guide →What to do when you need to make a farm insurance claim
A claim after a fire, a flood or a break-in is stressful enough without wondering what your insurer owes you. This page sets out how farm claims work and what to check before you sign anything.
Explore the farm insurance guides Read your rights when a farm claim goes wrongMaking a farm insurance claim, and what happens if you disagree with the outcome
A claim is where an insurance policy is tested against reality, whether that's a grain store roof stripped by a gale or a barn fire that takes out a season's worth of machinery. Most disputes don't start with an insurer acting in bad faith. They start with a gap between what the farmer expected the policy to do and what the policy document actually says, and that gap usually only becomes visible once a loss adjuster is standing in the yard.
What happens once you report a loss
Every policy sets out a notification process, and it usually asks for the same things: report promptly, keep records, don't dispose of damaged property before it's been assessed, and don't start major repairs before the insurer has agreed the scope of the work. Skipping any of these steps doesn't automatically kill a claim, but it gives the insurer grounds to question it later.
- Report the loss to your insurer or broker as soon as you reasonably can, in writing where possible
- Photograph the damage before anything is moved or cleared
- Keep receipts, invoices and any correspondence relating to the loss
- Get quotes for repair or replacement
- Check your policy document for a claims notification clause before you do anything else
Getting the value right
How much a claim pays out often turns on a distinction that only becomes obvious at the worst possible moment: reinstatement cover pays what it costs to rebuild or replace something as new, while indemnity cover pays what it was worth, allowing for wear and age. A grain store insured on an indemnity basis might pay out well below what it costs to put a replacement up today, even though the sum insured looked adequate when the policy was taken out. The definitions of both terms are worth reading in the glossary before a loss happens.
Why claims get reduced or disputed
Insurers decline or reduce claims for reasons that usually trace back to the policy wording. A machinery claim can turn into an argument about whether a seized part failed suddenly or wore out gradually, because most all-risks machinery cover excludes wear and tear. A livestock claim can stall over whether a disease was already present before the policy started. An underinsurance clause can mean that if your sum insured turns out to be below the true rebuild cost, the insurer pays out proportionally less across the whole claim. None of this makes a dispute unusual. It makes reading the policy document before renewal worth the hour it takes.
If you disagree with the outcome
Every regulated insurer has to run an internal complaints process, and that's the first place to go if a claim has been declined, reduced, or handled slowly. Put the complaint in writing, set out what you think is wrong and why, and ask for their final response in writing too. If that response doesn't resolve things, or the insurer hasn't dealt with the complaint at all, the Financial Ombudsman Service can look at the dispute independently. It's free to farmers, and its decisions are binding on the insurer once made. Details of how to bring a complaint to it are held on its own website, since the process changes from time to time and it's worth reading directly from the source.
This page sets out what to look for and what questions to ask. It isn't advice on your own claim or dispute, and the site itself isn't authorised to arrange cover or act between you and an insurer. Where a specific dispute needs resolving, that's a conversation for your broker, your insurer's complaints team, or the Financial Ombudsman Service. The farm insurance claims guide goes into the notification rules and common exclusions in more depth, and the guide to finding a regulated broker is a useful next step if you're reviewing who handles your cover.
From incident to outcome
What happens once you report a claim
A claim rarely goes wrong at the moment of loss. It goes wrong somewhere in the sequence that follows, and knowing where the sequence usually turns makes it easier to spot when yours has gone off track.
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You report the incident to your insurer
Most policies give you a set window to notify your insurer after a fire, storm, theft, or livestock loss, and leaving it too long can weaken your position later. Call the claims line stated in your policy document, and get a claim reference before you hang up. Photograph the damage, whether that's a collapsed shed roof or a dead animal, before you clear anything away or start repairs.
Keep a written note of who you spoke to and when. It matters more than it sounds like it should.
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The insurer assesses what happened
For anything beyond a small claim, the insurer is likely to send a loss adjuster, an assessor who inspects the damage and reports back on the cause and the cost. A burst pipe might be handled by phone; a barn fire or a slurry pollution incident usually means a site visit. This is the stage where your sum insured, the figure you told the insurer your buildings or machinery were worth, gets tested against what it would actually cost to put things right.
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The insurer decides what it will pay
The outcome lands in one of three places, and each one calls for a different response from you.
Paid in fullThe insurer accepts the claim and pays out under the terms of your policy, minus any excess, the amount you agreed to cover yourself before the policy pays a penny more.
Paid in partThe insurer accepts the claim but reduces the payment, often because the sum insured was lower than the actual rebuild cost or because an exclusion applied to part of the loss.
DeclinedThe insurer refuses the claim outright, usually citing an exclusion, a breach of a policy condition, or a dispute over what actually caused the loss.
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You query the decision with the insurer
If the figure or the decision doesn't match what you expected, ask the insurer in writing to explain how they reached it, and request a copy of any loss adjuster's report. Every insurer runs an internal complaints process, and raising a complaint formally starts a clock that works in your favour if the matter drags on.
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You take the dispute to the Financial Ombudsman Service
If the insurer's final response still doesn't sit right, the Financial Ombudsman Service can look at the dispute independently, free of charge to you, and its decisions are binding on the insurer. It handles complaints from individuals and many small businesses, so most working farms fall within its reach, though the exact rules depend on the size and structure of your business.
The service is separate from the insurer, and using it costs you nothing.
This describes how a farm insurance claim commonly moves, but the exact time limits and requirements sit in your own policy document and vary between insurers. This site does not provide regulated advice. For a claim in progress, your policy document and your insurer's claims line are the first things to check, and a regulated broker can guide you through a dispute you can't resolve alone.
What to check when a claim goes wrong
Practical guidance for the moments a claim gets delayed, reduced, or refused, and where to look before you argue the point.
Terms that decide the outcome
Indemnity, reinstatement, and excess often settle a dispute before anyone mentions the Ombudsman.
Browse the glossary →Buildings claims after fire or storm
Rebuild cost disputes usually come down to whether the sum insured matched today's rebuild price.
Explore buildings cover →Livestock mortality disputes
Disagreements often hinge on which diseases are listed in the policy.
Read about livestock cover →Getting a broker involved
A regulated broker can push a stalled claim in ways a policyholder often cannot manage alone.
Find a regulated broker →Know what to expect before you ever need to claim
Understanding how a claim works, and what your policy actually promises, makes the process far less stressful if the day comes.