CROP INSURANCE
CROP HAIL

Crop Hail coverage provides protection against physical damage from hail, fire and transit damage. Options exist in some areas for other perils, such as wind, theft and replanting.

Crop Hail can be used along with MPCI or other comprehensive coverages to offset the MPCI deductible and provide protection up to the actual cash value of the crop. Coverage is provided on an acre-by-acre basis, so that damage that occurs on only part of a farm may be eligible for payment when the rest of the unit remains unaffected. If a grower has coverage and bumper crop yields or higher prices become apparent, coverage can be increased during the growing season to cover the value of the crop.

Dollar Guarantee

A dollar amount of coverage per acre is selected by the grower. Options with different deductibles may be selected to permit a grower to partially self-insure for reduced premium costs.

Loss Payment (indemnity)
To calculate a payable loss, multiply the dollar guarantee by the damaged acreage, and the percentage of loss, less any deductibles. Multiply the result by the ownership share.

How It Works

• $250 of coverage per acre Dollar guarantee (20 acres x $250/acre)=$5,000
• No-deductible policy
• Percent of loss 40%
• 20 acres of damaged corn Indemnity ($5,000x40%)=$2,000
• Hail caused 40% damage
• 100% Ownership

Benefits

1. Fosters greater confidence to do pre-harvest crop sales

2. Protects crops up to the actual cash value against specific perils

3. Acre-by-acre coverage provides protection for isolated damage

4. May be used as loan collateral

5. Rewards the more businesslike grower

6. Protects profit

Note:  This summary is for general illustration only. See policy for details.

The purpose of this Companion Hail Insurance Plan is to cover on an acre basis the portion of the crop not insured under your policy reinsured or approved by the Federal Crop Insurance Corporation (FCIC) identified as the difference between the potential yield and the yield guaranteed by such policy. Therefore, your crop hail policy is amended by the following provisions and conditions:

Determination of Amount Payable for Loss

A. We do not cover loss hereunder until the reduction in yield per acre caused by perils named herein exceeds 5%. Once the reduction in yield exceeds 5% the amount then payable will be determined by:

1. taking the percent reduction in yield which exceeds 5% times the elected increasing payment factor; and

2. taking this percentage, but in no event more than 100%, times the limit of insurance shown in the companion schedule of insurance.

For Example:

Determined Percentage Excess Multiplied by the Elected Increasing of Yield Reduction Over 5% Payment Factor
4.0 3.0 2.0

B. If a loss payable hereunder is also covered by other crop hail insurance, we will pay only the portion of the loss that our applicable limit of insurance bears to the total amount of insurance applying to the loss, except that no policy reinsured or approved by FCIC will be prorated with this policy. If a crop loss is also covered by other insurance, including but not limited to the following examples, farm property insurance or farm and ranch insurance, then we will pay only for the excess of such loss beyond the amount due from such other insurance, whether collectible or not, and not exceeding our limits of insurance.

C. The amount payable per acre may not exceed the actual cash value of the portion of the crop identified as the difference between the potential yield of the insured crop and the guaranteed yield under your policy reinsured or approved by FCIC