Farm Forestry New ZealandWhat should you do if there is a fire in your forest?
Tiffany Robertson, New Zealand Tree Grower February 2020.
Summer is well under way and this is often the time of year for sitting back and watching the trees grow while reflecting on last year’s achievements. However, for forest owners, brokers and insurers this is the time of year when things can get heated. The question is often asked − What do I do if there is a fire in my forest?
It goes without saying that the first thing you should do is dial 111. This may seem obvious but sometimes the brain can freeze and you should take a moment to stop and think.
- Dial 111 so that Fire and Emergency NZ can organise a first response to contain and extinguish the fire.
- A priority for fire fighters will be identifying and preserving the probable ignition source which is an important step in subsequently identifying the cause of the fire.
- You, and your forest manager if you have one, are encouraged to help preserve the ignition source under the guidance of Fire and Emergency NZ.
- Without compromising fire fighting or safety, avoid the use of heavy machinery around the ignition point as this can add to the problems and endanger the operator.
- Contact your broker or insurer as soon as you are aware that you have a claim and they will provide you with the relevant forms to complete
- Your broker or insurer will give the assessor an advance warning that an assessment is going to be required and once the claim form is received the formal claim assessment will begin.
Early inspection is vital to the claim process. The earlier the notification, the sooner it can be decided whether salvage is an option before damaged trees start to deteriorate and reduce salvage value.
Insurer actions when making a claim
Your insurer will endeavour to assess the extent of the damage as soon as possible. In the meantime it is important to provide as much information as possible to help with the claim. If you can provide following information it will help −
- A map of the affected forestry area showing stand name and area
- Photographs of the damage sustained
- A description of the circumstances surrounding the loss
- Media reports if available
- Fire reports from the relevant authorities
- Weather data at the time of the loss.
The loss adjuster will also help with obtaining the required material needed to progress and conclude your claim.
I would always recommend that if possible, either the forest owner or your representative accompany and guide the loss adjuster as they talk through the process on their initial ground visit. Many of the assessors I have dealt with over the years have had extensive experience in assessing and settling claims. This process is time consuming when it is carried out correctly so helping them as much as possible is often appreciated.
Assessors are required to follow any specific health and safety requirements and they will be familiar with the normal safety protocol when working in a forest. Their priority will always be to abide by the requirement of Fire and Emergency NZ. This can sometimes include waiting for authority to be given to enter the forest.
Salvage of damaged timber
The assessor will want to assess as soon as possible the opportunity to salvage damaged or other trees ready for harvest. They will make this decision with the forestry owner based on the best evidence of the locality and situation of the forest. This evidence will include current log market conditions, access to harvesting crews and the readiness of roading and other forestry infrastructure if it is available.
The decision to salvage depends on whether the insurer believes that it can be carried out profitably. If needed they can help the forestry owner to find management options for the salvage of the forest. Often if the decision to salvage is made and given, there is a risk of spoilage and degradation of damaged trees if delayed. The insurer can ask that priority is given for the immediate harvest of any areas which have been identified as being profitable salvage.
The decision to salvage should always be discussed with the forest owner against the profitability criteria as the work progresses. It is expected that the forest owner or their representative manage the salvage operation, just as you would any other harvest operation.
Proceeds from salvage will be deducted from any agreed standing timber losses. The salvage returns are deductible from your standing timber cover, not your total cover. For example, if you have re-establishment cover it would not normally be affected. If you are in any doubt, read what your policy says.
Depending on the size of the damaged area and assessor access, claims can take quite some time. I have had claims which take up to 18 months to be settled due to the size of the damage or because multiple claims having to be assessed. Others can take three to six months to resolve and close.
Reimbursement or settlement calculations need to be precise and will include all elements of the claim including the defined loss, any additional options and benefits minus the deductible and salvage returns. Some policies may require replanting within a defined period, so it is important to consider this when claiming the re-establishment portion.
I cannot stress enough the importance of getting your hectare values correct and your location precise. A formal valuation may be a cost at the beginning but will be beneficial when it comes to a claim. There is little worse than not being insured sufficiently or an insurer sending an assessor to a wrong location. Remember that when setting the value of the trees, the positive return for salvage of export logs for wind or fire is when the trees are over 18 years old.
Tiffany Robertson is the National Co-ordinator for the Aon Forestry Scheme. Aon have been supporter of NZFFA since 2014.
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