When the forecast shows a storm has the potential to bring hail over your farm, you know your night might end with anywhere from minor crop damage to a total loss. This kind of storm is nerve-racking enough as it is. The idea of an unprotected crop loss from hail makes that pit in your stomach even worse.
However, with the right crop hail insurance agent and policy in place, you can make sure you’re covered if that storm gets ugly. Doing so can help you protect your overall crop revenue potential even if a hailstorm knocks a few — or a lot — of bushels off the top end of your yields.
Know your crop hail policy options by asking these questions
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 four key questions:
1. How do I know what kind of crop hail policy is right for me?
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 while comparing premiums and other financial components of the basic policy versus deductible plans like DSX5 and DSX10, which have deductibles of five and 10 percent, respectively. If available in your area, the Annual Renewal of Crop Hail (ARCH) endorsement option also enables you to renew your crop hail coverage automatically each year at no additional cost.
“Look at the total cost to your operation. If you want to buy early to stay covered for all the storms in the spring and summer versus buying at the last minute, you need to look into it early and know the cost when making your decision,” said ProAg District Sales Manager Aaron Marmon. “Make sure you get a good quote on your options and what they’ll cover and what they won’t.”
2. What is covered under my policy and applicable endorsements?
Despite its name, 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:
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. When can I expect indemnities will be paid?
Along with accuracy and fairness, speed is of utmost importance to farmers regarding in-field damage adjustments and indemnity payments. Crop hail policy indemnities are paid as quickly as possible after a claim is filed, and an adjuster can assess and document crop damage after a hail event. To the customer’s benefit, good industry practice during the growing season is that claims should be worked 7-10 days after damage is inflicted.
“Our adjusters will work quickly with farmers in the field as soon as possible,” Marmon said. “It’s a high priority for us to get that claim adjusted and that check turned around to the farmer.”
4. How does my crop hail policy work?
Crop Hail Sample Calculation
|0% Deductible / Basic Coverage Policy|
|Coverage per Acre: $600||Ownership Percentage: 100%|
|Policy Deductible: 0%||Percent of Loss: 50%|
|Damaged Acres: 25 acres|
|$600 x 25 acres = $15,000 Total Coverage|
|$15,000 x 50% = $7,500 Loss Payment (0% deductible)|
|$7,500 / 25 acres = $300 Payment per Acre|
*All calculations are for example purposes only.
“It’s all about knowing how much you want to spend on hail coverage and the results you want,” said ProAg Underwriting Manager Lisa Beckman. “It depends on your risk management mindset, and ProAg agents are here to help farmers determine the best policies for their needs. Also, don’t forget to ask about any private product policies that may be available in your area.”
Explore your crop hail insurance options and find the right policy for your farm here. With the myProAg policyholder portal, ProAg provides customers direct access to general policy information, coverage levels and premiums, as well as the ability to submit claims, manage accounts and pay bills online. If you have questions or are ready to build your crop hail policy, contact your local ProAg agent to learn more.
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