Crop Insurance 101: Companion Hail Coverage

A Companion Hail Plan is a type of crop-hail insurance policy that provides additional coverage for crops already insured under a traditional Multiple Peril Crop Insurance (MPCI) policy. Some defining characteristics of Companion Hail Plan are below:

  • Coverage: Companion Hail Plans provide coverage for damage to crops caused by hail that is not covered under a traditional MPCI policy. The policy will pay out based on the level of damage to the crops, without taking into account any deductibles or coverage levels under the MPCI policy.
  • Premium: Companion Hail Plans 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 Companion Hail Plan, 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: Companion Hail Plans are typically less customizable than other types of crop-hail insurance policies. However, they may offer some flexibility in terms of coverage limits and other terms.
  • Risk: Companion Hail Plans place most of the risk on the insurer rather than the farmer. The policy pays out based on the level of damage, without considering any deductibles or other factors.
  • Coordination with MPCI policy: Companion Hail Plans are designed to work in conjunction with an MPCI policy. Companion Hail Plans are designed to provide additional coverage for crops that are beyond the limits of the underlying Multi-Peril Crop Insurance (MPCI) policy.

It’s important to note that Companion Hail Plans 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


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