Building a claim that holds up
Photograph, log and date every loss as it happens, because a well-documented claim is harder for an insurer to dispute later.
Read the guide →What to do when a farm insurance claim doesn't go your way
A claim can be knocked back, delayed, or settled for less than you expected. This page sets out what to check in your policy document, when an insurer's decision can reasonably be questioned, and how the Financial Ombudsman Service fits into a dispute.
Explore our farm insurance guides Read about your rights when a claim is rejectedWhen a farm insurance claim is refused, delayed, or underpaid
A claim can go wrong because farm risks are complicated and policy wording is written to cover a huge range of circumstances at once. A grain store fire, a flooded field of standing wheat, or a sudden run of livestock deaths can all end with an insurer offering less than you expected, delaying a decision, or refusing to pay at all. Knowing how the dispute process actually works puts you in a stronger position to push back.
Why claims get disputed
Most disputes trace back to a handful of recurring issues. The insurer may argue the loss falls under an exclusion, that the sum insured (the maximum amount the policy will pay) does not match the true value of what was lost, or that the cause of damage is disputed, such as whether a seized bearing on a combine counts as wear and tear or sudden mechanical breakdown. Underinsurance is a common trigger too: if your buildings or machinery were insured for less than their current rebuild or replacement cost, an insurer can apply what is known as average, reducing the payout in proportion to the shortfall.
What to do when a claim is refused, delayed, or reduced
The first useful step is always to get the insurer's reasoning in writing, because a verbal explanation over the phone is much harder to challenge later. Compare that reasoning line by line against your policy document, since insurers sometimes cite an exclusion that does not quite match the actual wording. Keep a written record of every call, including the date, the name of the person you spoke to, and what was said.
- Request the specific policy clause the insurer is relying on.
- Check whether the loss adjuster's report has been shared with you in full
- Gather your own evidence: photographs, receipts, veterinary or agronomist reports, and any maintenance records for machinery
- Note every date, since time limits apply both to your right to complain and to the insurer's obligation to respond
Making a formal complaint
If informal contact with the insurer does not resolve things, the next step is a formal complaint through the insurer's own complaints procedure, which every regulated insurer is required to have. FCA rules set a time limit within which the insurer must issue what is called a final response, and if that deadline passes without one, or if you are unhappy with the response you do get, you gain the right to take the matter further.
Taking a dispute to the Financial Ombudsman Service
The Financial Ombudsman Service (FOS) is free for policyholders to use and exists specifically to resolve disputes between individuals and financial firms, including insurers. Its decisions are binding on the insurer, though not on you, which means a well-prepared case referred to the FOS is a genuine avenue for redress. The FOS will want to see the same evidence you gathered for your complaint: the policy document, the insurer's correspondence, and anything supporting your version of events.
None of this is a substitute for reading your own policy document carefully before a dispute arises, or for getting advice from a suitably regulated broker on how a specific policy would respond to a specific loss. Our guide to farm insurance claims sets out what typically happens at each stage of a claim, and finding a regulated farm insurance broker covers how a broker can help before a dispute ever starts. If you want to check what a term in your policy actually means, the farm insurance glossary is a plain-language starting point.
How a claim moves
What happens after you report a loss
A farm claim rarely resolves in one phone call. It moves through a handful of stages, and knowing what each one involves helps you spot the point where things start to go wrong, if they do.
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You report the loss
You tell your insurer what happened: a barn fire, a flooded field, a stolen quad bike. Most policies set a time limit for reporting, sometimes as short as a few days, so check your policy document. Note the date and time of the loss, keep any photographs you take at the scene, and have your policy number to hand.
Reporting late is one of the more common reasons insurers query a claim later, even when the loss itself was never in doubt.
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The insurer decides how to assess it
Once notified, the insurer works out how the claim will be handled. A small, clear-cut claim might be settled from the paperwork alone. A larger or more complicated one, a machinery fire, a disease outbreak affecting a flock, usually brings in a loss adjuster: an independent assessor the insurer appoints to inspect the damage and value the loss.
Straightforward claimHandled by the insurer's own claims team from photographs, receipts, and your account of events.
Complex or high-value claimA loss adjuster visits the farm, inspects the damage, and reports back with a recommended valuation.
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The loss is valued against your policy
Whoever assesses the claim has to work out how much it should pay, and that depends on what your policy actually promises. Reinstatement cover pays what it costs to rebuild or replace the asset today; indemnity cover pays what it was worth, allowing for wear and age. If a fire destroys a grain store built twenty years ago, the difference between those two figures can be substantial, so it is worth knowing which one your policy uses before a loss happens.
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The insurer makes an offer
The insurer sets out what it will pay, and why. A partial offer, one that pays less than you claimed for, should come with an explanation: an exclusion that applied, a sum insured that fell short of the rebuild cost, or a policy excess deducted from the total.
You acceptThe insurer processes payment according to the terms of the offer.
You disagreeYou can challenge the figure or the decision before accepting anything, and accepting a payment does not always stop you querying it further, though it can affect your position, so read any settlement letter carefully.
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If you cannot agree, there is a formal route
You put your complaint in writing to the insurer first, setting out exactly what you disagree with and why. If it is not resolved to your satisfaction, you can refer the matter to the Financial Ombudsman Service, a free, independent body whose decisions are binding on the insurer even though they are not binding on you. This is a real route for a farmer who feels a claim was mishandled.
Our guide to farm insurance claims sets out this process, and your rights within it, in more detail.
This describes how farm claims typically progress. Individual policies and insurers vary, and this page does not amount to advice on your own claim. For guidance on your specific circumstances, speak to your broker, your insurer, or a solicitor. Definitions of terms like reinstatement, indemnity, and excess are in our glossary.
Where to start when a claim goes wrong
This section points you toward the practical steps for building a claim insurers won't easily dispute, and what to do when one already has.
Making sense of the wording
Terms like indemnity, sum insured and excess decide how a dispute plays out, so knowing what they mean before you claim matters.
Browse the glossary →Getting help from a broker
A regulated broker can push a stalled claim forward, and knows which paperwork an insurer expects to see.
Find out more →Disputes get easier to handle once you know what your policy actually promised.
Each guide sets out what a typical policy covers, where insurers commonly draw the line, and the questions worth putting to your broker before you ever need to claim.