What Is Crop-Hail Insurance and How Can It Protect You Against Loss?

If there’s one constant in farming, it’s that age-old unpredictability of the weather. You likely have Multiple Peril Crop Insurance (MPCI) for that very reason, to make sure you protect your crop revenue from weather-related events, not to mention other potential hazards and price changes you might face.

But what about the threat of hail? Hailstorms can cause serious damage to your crop, often destroying certain acres while leaving others relatively unharmed. Depending on your MPCI deductible and the extent of loss due to hail, it might be wise for you to obtain crop-hail insurance to better protect against the risk of losses.

How Is Crop-Hail Insurance Different From MPCI Coverage?

A crop-hail policy is not a replacement for MPCI but instead is supplemental coverage that addresses specific losses due to hail damage (and, in many cases, other perils such as fire, theft, vandalism, transit, storage structure, etc.).

Additionally, a crop-hail policy is not offered through the Federal Crop Insurance Corporation, and your premiums aren’t federally subsidized. You also don’t have to insure your whole operation under a crop-hail policy, you can choose coverage on an acre-by-acre basis.

With crop-hail insurance, you can easily customize coverage levels to meet needs specific to your operation, including opting for lower deductibles to cover spot losses.

You can also add a wind endorsement to your crop-hail policy on corn, protecting against losses suffered from green snap due to wind damage, additional harvest expenses caused by leaning corn, etc.

While MCPI provides general coverage for your operation, it doesn’t protect quite as well against opportunity losses. A crop-hail policy, meanwhile, can help you manage the risk of profit loss specifically caused by hail damage (in addition to other perils that might be covered under the policy).

Where Is Crop-Hail Insurance Coverage Available?

Crop-hail insurance policies are available to farmers in all 50 states.

Depending on your geographic location, there’s a pretty good chance you grow one or more crops—whether it’s corn, soybeans, cotton, wheat, and/or tobacco—that are particularly vulnerable to hail damage.

If this is the case, you’ll want to consider securing a crop-hail insurance policy to protect against potential loss, especially if you’re located in a region prone to tornadoes or frequent hailstorms.

Types of Crop-Hail Coverage

There are several types of crop-hail coverage to choose from, so it will be helpful to talk to a MOMENTUM AG Crop Insurance Agent. Here’s a quick overview of your options:

• Full/Basic crop-hail coverage provides a payment that equals the percent of loss multiplied by the insured value per acre.
• Deductible/Dollar Plans crop-hail coverage gives you the freedom to select your deductible and insured value per acre.
• Companion crop-hail coverage is supplemental, ensuring the portion of your crop not covered by your MPCI policy.
• Production coverage accounts for your MPCI policy and uses your production history to set guarantees and harvested yield to determine losses.

When Can I Purchase Crop-Hail Coverage?

Some farmers purchase crop-hail coverage when the weather patterns are volatile, while others wait until the radar is purple and are hoping coverage will be bound before the hail hits. Be careful not to wait too long to apply, though. Many regions have a minimum two-hour waiting period (or longer in some areas) from the time you sign the hail application to when coverage is bound.

There are years when the market swings upwards and the value of the crop warrants increasing hail coverage to cover that value. When the market is in a downturn, often crop-hail insurance coverage works with your multi-peril insurance to cover the cost of your inputs, keeping your operation whole when hail happens.

Crop-Hail Coverage from MOMENTUM AG

Don’t wait until the wall cloud blows over and there is nothing but stubble left in your fields. Work with your MOMENTUM AG Crop Insurance Agent to put a solid risk management plan in place that includes crop-hail insurance to potentially cover what your multi-peril policy doesn’t.

Call (866) 878-7133 to get connected to your local MOMENTUM AG Crop Insurance agent and initiate customized hail coverage for your operation, or click here for more information.

Talk to your Momentum agent for all of the details.

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