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As summer approaches, severe weather conditions follow. Wind, rain, and hail can cause devastating damage to a farmer’s crops. While multi-peril coverages are often in place to protect against general damage, insufficient coverage can leave farmers exposed to risk of loss in these severe storm events.

Fortunately, unlike multi-peril insurance policies, crop-hail insurance does not have an annual deadline for gaining coverage – so let’s dive into what crop-hail insurance provides, and how it can help you ensure a reliable stream of revenue regardless of what mother nature throws at you.

What’s covered by multi-peril insurance?

When considering any insurance options, it is important to know what coverage you already have, and where you may want to add additional protection. With commonly held multi-peril insurance, there is a very general layer of protection against weather-related issues that is offered.

  • Covers losses and lower yields caused by acts of nature, including drought, frost, wind, fire and insects.
  • Offers baseline protection against hail damage.

The peril of coverage gaps

In the context of farm insurance, multi-peril coverage is considered “bottom” coverage, as it provides a broad base of protection, and additional insurance packages are considered “top” coverage. As a farmer, it is important to understand how different insurance packages work together to provide holistic protection that is tailored to your distinct risk profile and risk tolerance.

Anywhere in your field where there is only bottom or top coverage, is considered a gap in your coverage. There are a few pros and cons to gaps in your coverage, but it is important to be mindful of where and why you have these gaps.

  • On the plus side, less risky patches of land may not warrant as much coverage, saving on premiums by mindfully opting out of coverage for these portions.
  • However, this leaves you open to more risk in places where coverage is not extended, resulting in greater losses in the event of a severe weather event.

Where crop-hail insurance comes in

Hailstorms can strike unexpectedly, and the damage can significantly impact your yield. Regardless of the amount of damage, the impact and the recovery are always time consuming and expensive.

Crop-hail coverage gives you an additional layer of coverage on top of your existing multi-peril insurance. With the flexibility of acre-by-acre protection, you can concentrate on specific parts of your yield that are left at highest risk, with deductible options that allow you to insure up to the full value of the crop.

In the event of a hailstorm, you will arrange to have an adjuster come to your farm. Here, they will assess the damage, determining the amount of land impacted. Then, based off your coverage, you will receive a payout in the near term in line with the damage sustained.

Schedule your review today

At Minnwest Insurance, we offer comprehensive crop-hail insurance designed specifically for farmers like you, allowing you to protect your crops, your hard work, and your livelihood. Contact us today to get started on a quote, or for more information from one of our crop-hail insurance agents.

 

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