Crop Insurance 101: Production Hail Coverage

A Production Hail Plan is a type of crop-hail insurance policy that provides coverage based on the actual yield or production of the insured crop, rather than the value of the crop. Here are some of the characteristics of a Production Hail Plan:

• Coverage: Production Hail Plans provide coverage for damage to crops caused by hail, up to the level of the actual production or yield of the insured crop. The policy will pay out based on the level of damage to the crops, without any deductibles or different coverage level options.
• Premium: Production Hail Plans have a set premium, based on the estimated yield or production of the insured crop. The premium may vary depending on the crop, location, and other factors.
• Payment: If a farmer needs to file a claim under a Production 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 level of the actual production or yield of the insured crop.
• Flexibility: Production Hail Plans 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: Production Hail Plans place most of the risk on the farmer rather than the insurer. The policy pays out based on the level of damage, up to the level of the actual production or yield of the insured crop, without taking into account any deductibles or other factors.
• Additional Coverage: Production Hail Plans may offer additional coverage for other weather-related risks, such as wind or drought, for an additional premium.

It’s important to note that Production 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

Email: chelsea@kingsgateins.com