Rotation Timber & Carbon
Our policy is ETS compliant and insures forest land under 2 sections for:
Section 1:
Standing Timber against a loss of wood quality following defined events.
Section 2
the weight of carbon stock in the event of an emission liability from defined events for NZEUR registered participants with Post 1989 rotation harvest forests. The cover allows two options to the ‘Standard Cover’ which insures your current carbon stock sequestered, these are:
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‘Indexed Growth’ which in addition to the standard cover allows you to insure the increase of carbon stock that will be sequestered during the period of insurance, or
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‘Future Carbon Loss’ which in addition to the standard cover allows you to insure projected carbon not yet sequestered for up to 5 years into the future. As long as you replant following a loss, this option, if insured correctly will allow you to repay your obligation to replace units and could fulfil a shortfall from a contract you may have entered into with a third party to supply a fixed number of units by the contract expiry date.
Under section 2 you can insure either NZU or AAU units for either:
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Post 1989 to pre 2008 carbon stock.
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Post 2008 obligation period increased carbon stock.
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Those units for which you have an obligation to replace only.
Defined Events include:
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Fire
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Lightning
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Impact
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Malicious Damage
Additional Benefits and Options may include:
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Harvested Timber remaining at the place of the felling operation
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Claim Preparation Costs
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Removal of Debris & Replanting Costs
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Fire-fighting Expenses
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Windstorm – Sub limits apply
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Earthquake
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Volcanic Eruption
Our carbon section is not a reworded standing timber policy and does not respond as one.
Our policy is annually renewable by way of offer and acceptance and is an agreed value policy various deductible levels.