Hail Insurance

[furrowtickler]

We got hailed out like last nights storm back some 10 years ago on about 21 quarters at this time of year.

The adjuster handed me a text from management that said no payments they were evaluating what would come back and pay later.

I just about lost it.

We have same thing .
The last guy a few years back tried the same stunt . I told him as we leaned on his fancy new truck .... what if hail totally dented your truck , and SGI told you to wait 6 months cause maybe the dents would come out on their own .
What I still can’t understand is why are they so worried about if the crop comes back ???? Most times it’s just a fluke of Mother Nature that it does .. but who cares the damage was done .

[mustardman]

Your crops unlike your truck are not insured for "hail damage"
They are insured for "crop loss due to hail"
Crops are a living thing that can regrow and repair itself (to a point)

[Sheepwheat]

Hail on two leaf wheat vs Headed wheat are not comparable. My experience with it, are that some companies pay max of 25% while the crop is obviously vegetative, as it generally comes back. It becomes later, but I have seen some amazing hail issues, and some amazing recoveries. One hail year, I made out far better with the hail than without, because even though fully headed, the wheat and barley recovered, and I combined near normal yields. Every one else had given up and worked theirs up. I was a dumb 21 year old, and had no clue, but it worked quite well.

Though I do disagree with the stupidity of waiting, I know a lot of guys (famers), are far too fast to write it off when plants are young.

Then again, oour crops at this time of year, are probably where most areas crops are on may 25th. Lol

[Guest]

I had canary get hailed just before heading . the stawks were bruised and pitted bad. they said to wait and see how it it came back.looked good and we harvested it. we harvested it and it was so diseased up seed never finished . they wouldn't give anything. had to get an agrologist who helped with the fight , got paid in January . if you get canary hailed at in any stage , it is ****ed

[ajl]

Not entirely sure how sk/mb crop and hail insurance work... if you are going to take hail insurance in ab at a respectable level, especially on specialties, its worth taking the hail rider option on crop insurance. My wife's aunt works at AFSC and she says that many in the hail zone, take the rider on crop insurance, even though likelihood of a crop failure is very low because rates are 15+% on straight hail, and 1.5x on peas/lentils, and 1.75 on things like mustard.

5 townships im in are 7%, one is 6 if i recall... in my instance, to get the same spot loss crop insurance would have offered, would cost 60% of the cost of straight up crop insurance. They claim they are only charging you 37% of the rate, and it is spot loss. If it hammered enough of your acres of one crop, and drove it into a claim position, then you stand to get paid twice.

You do not get paid twice with a hail rider. You only get paid to maximum indemnity so if you get 100% damage due to hail, you get paid the crop insurance value of the crop which would have happened anyways if you had a zero yield for any other reason like drought etc. With hail rider, you just paid more premium. Hail rider works for spot loss but is only an advantage when you harvest at least your crop insurance guarantee from what is left. Have had crop totally demolished with a hail rider on it and that is how it works. Need straight hail to get paid twice.

[Oliver88]

We got hailed out like last nights storm back some 10 years ago on about 21 quarters at this time of year.

The adjuster handed me a text from management that said no payments they were evaluating what would come back and pay later.

I just about lost it.

They usually come back in one month to inspect again than pay at that time.

At this time of year a payment for cereals is very unlikely and for canola 25% max.

[helmsdale]

You do not get paid twice with a hail rider. You only get paid to maximum indemnity so if you get 100% damage due to hail, you get paid the crop insurance value of the crop which would have happened anyways if you had a zero yield for any other reason like drought etc. With hail rider, you just paid more premium. Hail rider works for spot loss but is only an advantage when you harvest at least your crop insurance guarantee from what is left. Have had crop totally demolished with a hail rider on it and that is how it works. Need straight hail to get paid twice.

If all your acres of a particular crop get wiped, then yes, all you get paid is up to the maximum indemnity. What im getting at is if you have lets say 1000 acres of wheat covered, that is covered to 20bu/ac. Lets also say that absent the hail event, you would have cut 20,000 bu, right on the coverage line. Now lets say you get hammered to 100% on 300ac, and the rest goes that magic 20bu/ac. In that event you would get spot loss on the 300ac, plus you are also 6000bu short of production. Crop insurance then covers the 6000bu after they measure the bins, provided you do not reach the maximum indemnity.

[Guest]

More importantly biglentil what are your rates. I think I have a township/range at about 2.3 or 2.4 %. The other one is about 1% higher( I will check).

You can look at it two ways...the rate is low so it must not hail much so don't bother or it's cheap and you should insure...about $5 for $200 of coverage for basic crops.

Dilemma?

As you might know...I have no Crap Insurance...maybe I should at least cover the hail peril.

And if it's really bad....Ag Stability will keep me in Kraft Dinner and wieners til next crop....hopefully!

...checked, 2.3 and 3.8 paid by Sept 30

2.7 in 47-12, 3.2 in 48-12. canola is 1.2 times

[Oliver88]

Co-op Hail is being cheap this year we are finding. Municipal is paying out roughly double.

What are others finding??

[food4u]

same reason I dropped Municipal Hail after a storm in 84..