Understanding Hail Insurance

But, here are some commonly asked questions that may give you some answers to what you’re looking for.

1. When I buy a hail insurance policy, how much will I get if it hails on that field?

Your hail policy provides for payment on a “percentage of loss basis”. If you received hail damage equivalent to thirty percent in any one field, your policy would pay thirty percent of the amount insured per acre.

2. Can I insure my crop for more than it’s worth?

Insurance limits purchased should be adequate to replace only the income lost due to hail.

3. Usually when I buy hail insurance it is early in the growing season. Later on, if the crop really looks good, I will purchase additional limits. Is there a problem in buying insurance this way?

This is quite acceptable. The only requirement is that on your application you must declare the limits of all hail insurance carried with any other insurance company.

4. My neighbor cash rents his land to my son. Can I purchase a hail insurance policy on my son’s crops?

Generally, no. You must have an insurable interest in each and every crop you insure. That means you must personally stand to lose money in the event your son’s crop is lost or damaged by hail. If you don’t, then you do not have the right to purchase insurance.

The same holds true for the landlord. The cash rent the landlord has collected is seen to remove any insurable interest he may have had in your son’s crop.

5.  Last year I bought a hail insurance policy in June and it was August before I received the actual policy. Is this normal?

Usually, you will receive your policy much sooner than that. If your policy is not received within a reasonable period of time, contact your agent.

6. Is there anything I should do when I receive my hail policy?

When your policy arrives you should review it thoroughly to ensure that:

a) you understand and are familiar with the terms and conditions of the policy; and

b) the description of the crops insured, legal location and number of acres insured are correct.

If there is a mistake, it is much easier to correct at this time than after a loss.

You will also receive a Notice of Loss form with your policy. This form will be completed by you or your designated Power of Attorney after an actual hail claim.

7. I farm some land, which is a considerable distance from my home quarter. Is there any rule in the policy that says I have to inspect these insurance crops a certain number of times of the summer?

There is no rule requiring a set number of inspections of these crops. Remember, however, that the Notice of Loss must be filed with the hail insurance company within three days of the storm causing loss or damage. Small localized storms do occur and for that reason alone, you or your representative should inspect, or make arrangements to have these crops inspected, periodically.

With permission from the Hail Insurance Council of Saskatchewan Pamphlet “What you should know about Hail Insurance” www.Insurancecouncils.sk.ca.