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Assiter Insurance
Agency LLC
120 West
California Street, Floydada, Texas, 79235 - Phone 806 983-3322
or Cell 806 777-5577
Announcing Crop
Hail July Rates for Cotton
Cotton July Rates go into effect on Saturday June 25th.
Rates are basically half price, for example Cotton DD20 is
$5 per $100 Coverage. Other crops do not carry "July"
rates.
For more
information contact our office or visit:
To save your time, we
provide a summary and more details for specific areas of
interest. Please stop by or call for
more information.
Crop Hail Summary:
1.
Crop Hail Insurance.
Crop Hail covers loss due to hail and some policies cover
fire or transit.
Available in many forms or deductible levels .
Available on many crops not insurable by MPCI or CRC.
2.
Pays on
any acres that receive hail.
If it hails on part of field - those acres qualify for
payment
3.
Producers elect acres to be covered
You may choose any acres to
cover and exclude any other acres.
.
4.
Premium is due with the Application for Insurance.
5. Different
Approach to Adjustment
Count Percentage of loss rather than Percentage left as
MPCI.
Details
General Crop Hail Info
Crop Hail covers loss due to
hail. It will not cover wind loss in the absence of hail.
Plants must be physically hit by hail and show signs of
cutoffs or lesions. Some policies also cover fire and perils
in transit to first place of storage or processing.
Crop hail policies are
available in BASIC Form that only requires 5% loss before
policy pays loss. These policies are expensive,
therefore companies offer many other forms and deductible
levels. We prefer a DD20 policy that carries a 20%
deductible with the deductible disappearing beginning at a
40% loss and 0 deductible at 50% or above loss. The
deductible and policy form greatly influences the price.
Crop hail is priced per $100
of coverage. Coverage amount may be any amount up to
$400 per acre depending on crop and policy limitations.
For example...a producer or landlord may purchase $25 per
acre or any amount of the policy limits. The amount
purchased by any entity is paid 100% to that entity.
Cotton policies have
stepladder, earlybird and broad forms. Each of these
offer different levels of in force insurance, increasing
with each calendar day. Each policy has special
provisions that deserve consideration at the time of
purchase.
Other crop hail policies are
available for many crops that are not insurable under the
MPCI or CRC policy. Also "catch crops" that are
non-insurable may be covered with hail.
Pays on acres lost
A unique benefit to crop
hail policies is that they are paid on any acres lost
including partial fields. This is very beneficial when
MPCI does not pay due to partial losses on units until
harvest. For example...If half a field is destroyed by
hail the adjuster will estimate the acres and pay the
percentage loss due. Producers may elect to take the
damaged crop to harvest without effecting the crop hail
payment.
Cover only selected acres
Producers may elect to cover
any acreage that may be separately identified. For
example...A producer may elect to cover only his drip
systems, pivots, row water, dry land, or any combination
thereof.
Premium due
Premium for crop hail coverage
is due at the time of application. Crop hail coverage
does not bind without full payment of premium.
Alternative Adjusting
Crop hail is adjusted
differently than MPCI. MPCI counts plants remaining to
arrive at a stand count. Crop hail counts lost plants
then divides by total plants to arrive at a percentage loss.
The loss payment is based on insurance in force times the
loss amount percentage times the acres insured. A hail
loss percentage could be a large number such as 90% when the
MPCI stand count may still be high such as 30%.
Tim Assiter
Assiter Insurance Agency LLC
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Thank you for your business. |
