Crop Insurance 101: Basic Hail Coverage

A Basic Hail policy is a type of crop-hail insurance policy that provides coverage for damage to crops caused by hailstorms. Below are some characteristics to understand when considering this policy type:

• Coverage: Basic Hail policies provide coverage for damage to crops caused by hail. The policy will pay out based on the level of damage to the crops, without considering any deductibles or coverage levels.
• Premium: Basic Hail policies have a set premium, based on the value of the crops being insured. The premium may vary depending on the crop, location, and other factors.
• Payment: If a farmer needs to file a claim under a Basic Hail policy, the insurance company will send out an adjuster to assess the damage to the crops. The policy will pay out based on the level of damage, up to the coverage limit.
• Flexibility: Basic Hail policies may offer some flexibility in terms of coverage limits and other terms. However, they are generally less customizable than other types of crop-hail insurance policies.
• Risk: Basic Hail policies place most of the risk on the insurer rather than the farmer. The policy pays out based on the level of damage without any deductibles.
• Additional Coverage: Basic Hail policies may offer additional coverage for other weather-related risks, such as wind or drought, for an additional premium.

It’s important to note that Basic Hail policies may not provide coverage for all types of damage to crops, such as damage caused by insects, disease, or other factors. Farmers should carefully review the terms and conditions of the policy and consult with a knowledgeable insurance agent or broker to ensure they have the coverage they need to protect their crops against all potential risks.

To learn more about the insurance products available for farm risk management, reach out to Chelsea Heatherington at Kingsgate Insurance.

Chelsea Heatherington, Farm & Ag Specialist

Call or Text: 515-302-8400

Email: chelsea@kingsgateins.com