Crop-Hail Coverage: Providing Peace of Mind in the Middle of the Storm

The Northeast U.S. is no stranger to severe weather events that can cause significant damage to crops. Hail, specifically, can be a true catastrophe for agricultural businesses — and they’re unpredictable. The damage caused by hailstones can destroy a portion of a crop and result in significant financial losses for farmers. Crop-hail insurance is an essential tool for managing this risk.

A crop-hail insurance policy provides coverage for reduced quality and production of crops resulting from hail events. This coverage gives acre-by-acre protection that can cover up to the full value of the crop, and the cost of a crop-hail policy may be less than the deductible of a Multi-Peril Crop Insurance (MPCI) policy.

Crop-hail insurance covers a multitude of fruit, vegetable and row crops, and coverage is dependent on the growth stage of the crop. For example, tree fruit coverage goes into effect when 90% of the crop has grown to a half inch in diameter; berries need to be clearly visible and formed; and grape coverage is effective when 75% of the crop has grown to at least an eighth inch in size. Additionally, damage must exceed either 5% or 10% of the crop, depending on crop and the insurance company that issues the policy.

Coverage is based on a dollar amount per acre rather than production history, which is the same as with MPCI policies. Unlike regular MPCI crop insurance, crop-hail insurance does not require the farmer to prove a yield loss. The policy pays out based on the severity of the damage caused by the hailstorm, regardless of whether the crop is ultimately harvested or not.

Crop-hail insurance premiums vary depending on location, coverage levels and insurance company. They are generally lower than those for traditional crop insurance policies, making it a cost-effective way for farmers to manage risk. In addition, crop-hail insurance policies typically adjust and pay out quickly after a loss, providing farmers with the cash they need to replant or cover their operating expenses. There is not a specific deadline to obtain a policy.

Crop-hail insurance coverage is an essential tool for Northeast farmers to manage risk and protect their crops against the financial impact of hail damage. With a range of coverage options, low premiums, and fast adjusting and payouts, crop-hail insurance provides farmers with the peace of mind they need to focus on their business without worrying about the impact of severe weather.

Contributed by: John Fitzpatrick, Crop Growers