Crop Hail Coverage is offered through private companies rather than through the Federal Government.  It provides protection against physical damage from Hail and/or Fire.  This type of insurance also provides protection from windshatter, transit coverage to the first place of storage, stored grain protection, and others (contact us for details).  Options are available for purchase to protect against perils such as winterkill, snowmold, and theft.  Crop Hail insurance can be purchased alone or along with other insurance such as MPCI or CRC.  Coverage is provided on an acre-by-acre basis.  If damage occurs on part of a farm, that section is eligible for payment while the rest of the farm remains unaffected.

The amount of hail coverage is chosen on an individual basis based on the producer's expected yield, and anticipated price.  Coverage is flexible in that if coverage can be increased if prices are higher than expected or yields are looking good.

To calculate a payable loss, multiply the coverage per acre (as of the date of the loss) by the damaged acreage, and the percentage of loss, less any deductibles.

Example:
Coverage Details:
$300 of coverage/acre
No-Deductible Policy
20 acres of damaged wheat
Hail caused 30% of the damage
100% ownership

Dollar Guarantee: (20 acres x $300/acre) = $6,000
Percentage of loss: 30%
Loss Payment: ($6,000 x 30%) = $1,800

Crop Hail Coverage is good because it provides acre-by acre coverage for isolated damage.  It also protects crops up to the actual cash value against specific crop perils.

Rates vary by Township.