Coverages | CH | What is CH?

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What Is It? What Are Its Benefits?

Crop-Hail coverage provides protection against physical damage from hail and/or fire. Other coverages provided include fire department service charges, transit coverage to the first place of storage, catastrophe loss award (most coverages) and replanting coverage (most crops). Options exist in some areas for other perils such as wind and theft.

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. may be eligible for payment when the rest of the unit remains unaffected.

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

To calculate a payable loss, multiply the amount of coverage per acre applying on the date of loss by the damaged acreage, and the percentage of loss, less any deductibles.

How It Works (corn illustration)

Coverage Details		Loss Payment
$250 of coverage per acre		Dollar Guarantee	(20 A. × $250/A.)=$5,000
No-deductible policy		% of Loss	40%
20 acres of damaged corn		Loss Payment	($5,000 × 40%)=$2,000
Hail caused 40% damage
100% Ownership

Coverage Details Loss Payment

$250 of coverage per acre Dollar Guarantee (20 A. × $250/A.)=$5,000

No-deductible policy % of Loss 40%

20 acres of damaged corn Loss Payment ($5,000 × 40%)=$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 business-like grower.
6. Protects profit.

Availability

Crop-Hail coverage is available in all states in the United States and in Alberta, Manitoba, and Saskatchewan in Canada. Coverages and options vary by geographical area and crop.

05/10/01

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