Crop Insurance 101: Crop-Hail Insurance

Policies written specifically for hail risk are called Crop-Hail Insurance policies. These programs are designed to cover gaps left by Multi-Peril Crop Insurance (MPCI). Learn more about MPCI here.

Crop-Hail insurance provides coverage to crops on a per acre basis. Though the primary peril insured against in Crop-Hail insurance is hail, coverage can be added for fire, lightning, transit and more. Crop-Hail Insurance can be purchased with an MPCI policy or as a stand-alone policy.

Crop-Hail policies are private crop insurance products that are not subsidized by the USDA.

Crop-Hail Basics

Coverage will attach at the time a crop is clearly visible above the ground. Coverage on corn and soybeans typically expires in December of the covered crop year. The specific date may vary depending on the Approved Insurance Provider (AIP). Hail coverage is not available on cover crops unless specifically agreed upon with your AIP.

Weighing Your Options

When weighing the options of Crop-Hail program offerings, consider these three factors and how they work with your risk management plan:

1. Deductible – Amount of loss that is self-insured, before policy coverage begins.
2. Underlying Coverage Level – The percentage of coverage provided by the underlying Multi-Peril Crop Insurance policy, if any.
3. Payment Factor, Modifier, or Multiplier – a factor or percentage elected that is used to multiply coverage dollars or yield guarantees.
4. Cash Discount – Available if paid by the deadline provided.

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

References:

https://www.extension.iastate.edu/

https://www.rma.usda.gov/