Five Questions To Ask Your Crop Insurance Agent When Selecting Crop Hail Insurance
Your Guide to Selecting Crop Hail Insurance with Your Agent: Five Questions to Ask
Hail can cause anything between minor crop damage and total loss. It’s unpredictable, but the right crop hail insurance coverage can give you peace of mind to weather the storm.
Crop hail insurance is designed to give you acre-by-acre protection up to the actual cash value of your crops. It can help close a gap in coverage when the loss from a hail event is less than the deductible of a federal multiple-peril crop insurance (MPCI) policy.
While this private product doesn’t have subsidized premiums, it’s a flexible option with customizable coverage levels and timing. You can even add coverage during the growing season before damage occurs. Because coverage can be purchased on a field-by-field basis, you have the flexibility to insure only the acres you want to protect. This often makes crop hail insurance a relatively inexpensive way to protect against loss.
Like other crop insurance options, there are plenty of factors to consider with crop hail. Your independent ProAg agent can help you select tailored coverage that works for your operation. We’re here to help you prepare for that meeting and make the crop hail insurance process easier.
The questions you should ask before buying crop hail insurance
If you’re considering adding a crop hail policy to your risk management strategy this year, the best way to get started is by asking your crop insurance agent. These five questions can help you prepare for a meeting with your agent:
- How much crop hail insurance coverage do I need?
- What is covered under a crop hail policy?
- What do the crop hail endorsements cover?
- How does my crop hail policy work?
- How quickly are crop hail insurance claims paid?
1. How much hail insurance coverage do I need?
It depends, but your crop insurance agent can help you find the right balance. It all depends on your MPCI coverage and your risk management strategy. Crop hail insurance can help protect your farm in situations where damage from hail or other covered perils doesn’t trigger your MPCI coverage.
That might be because the damage is less than the deductible of your federal crop insurance policy. It could also be a situation where the damage doesn’t lower your yield enough for a revenue insurance policy to protect your revenue.
ProAg offers a variety of crop hail coverages that can meet your risk management needs. Review the different plans available in your area with your trusted ProAg agent. Together, you can compare premiums and other financial components of the basic policy versus deductible plans.
If available in your area, the optional Annual Renewal of Crop Hail (ARCH) endorsement option also enables you to renew your crop hail coverage automatically each year at no additional cost.
2. What is covered under a crop hail policy?
A crop hail policy can protect your farm revenue from more than just damage inflicted by hailstones. Extended policy coverages that may be available in your area include:
- Fire and lightning.
- Reimbursement of replanting costs.
- Carry-over coverage.
- Fire department service (up to $500).
- Vandalism and malicious mischief ($100 deductible).
- Stored grain coverage.
A crop hail policy can be customized for your operation based on crop hail endorsements available in your state that reflect the specific perils you’ll likely face. For example, wind damage is common in Kansas, making the crop hail wind endorsement popular with farmers in that state.
3. What do the crop hail endorsements cover?
One of the most well-known choices is the Optional Annual Renewal of Crop Hail endorsement (ARCH). It modifies an annual crop hail policy to an automatic (continuous) renewing policy at no additional charge. A request for this coverage can be written at the same time as the MPCI coverage, giving you only one application form to sign.
Crop Hail endorsements are available on a variety of crops, but not all endorsements are available everywhere or for every crop. When available, some can be used to include additional coverage. Others can create coverage for other perils. Your ProAg agent can help you understand your risk management options.
4. How does my crop hail policy work
Crop hail insurance is typically used to supplement MPCI coverage. You’ll work with an agent to decide on timing, deductibles and optional endorsements. Once the policy is approved and active, you’ll be protected against perils named in your policy.
If a hailstorm or other covered damage happens, you’ll notify your agent. A ProAg claims adjuster will be on-site to evaluate the potential loss. If your claim is approved, you’ll be issued an indemnity payment.
Here’s an example of how a basic crop hail insurance policy with the following coverage would calculate the total indemnity.
5. How quickly are crop hail insurance claims paid?
Crop hail policy indemnities are paid as quickly as possible.
First, a claim must be filed after a hail event. Then, an adjuster can assess and document crop damage. Good industry practice during the growing season dictates that claims should be worked 7-10 days after damage is inflicted.
ProAg adjusters work quickly with farmers, getting in the field as soon as possible. Fast, accurate claims service is a high priority for our team.
Ready to build your crop hail insurance policy? Connect with your local ProAg agent.
