Crop Insurance 101: Deductible Hail Coverage
A Deductible Hail policy provides coverage for damage to crops caused by hailstorms. This type of policy is designed to provide more affordable coverage for farmers who are willing to assume a higher level of risk. Here are some of the characteristics of a Deductible Hail policy:
- Deductible: Deductible Hail policies have a set deductible that the farmer must pay before the insurance company will cover any damage. The deductible amount can vary depending on the policy and the insurer.
- Coverage Levels: Deductible Hail policies typically provide coverage for a specific percentage of the crop’s value, such as 70% or 80%. This means that if the crops are damaged by hail, the insurance company will pay a percentage of the crop’s value up to the coverage limit, after the deductible has been paid.
- Flexibility: Deductible Hail policies are often more flexible than other types of crop-hail insurance policies. For example, farmers may be able to choose their own deductible amount and coverage level to customize the policy to their needs and budget.
- Cost: Deductible Hail policies are generally more affordable than other types of crop-hail insurance policies because the farmer is assuming more risk by paying a higher deductible.
- Claims Process: If a farmer needs to file a claim under a Deductible Hail policy, they will need to provide evidence of the hail damage, such as photos or a crop inspection report. The insurance company will then determine the value of the damage and pay out the appropriate amount based on the coverage level and deductible.
It’s important to note that Deductible Hail policies may not provide coverage for all types of damage to crops, such as damage caused by wind, drought, or other weather events. 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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