Just about anything that is prone to damage or loss as a result of hail can be covered by insurance. However, when referring to ‘hail insurance’ it is generally in terms of crops as most other types of policies have an endorsement that covers ‘acts of nature’ or ‘acts of God.’ For instance, hail damage to a vehicle would be covered under comprehensive if the insured had that coverage. Homeowner’s policies would most often have hail coverage along with other perils that are part of the basic homeowner’s policy or even as a separate wind and hail policy in areas prone to tornadoes and hurricanes. There are all types of peril insurance, but a policy that is specifically written for hail most often refers to a policy that protects farmers from experiencing loss of revenue from crops destroyed by hail.
Basic Hail Policies
There is no deductible on a basic hail policy, unlike Multiple Peril Crop Insurance (MPCI) policies that cover a greater number of perils that crops can be exposed to. Even when you carry MPCI it is a good idea to get a separate basic hail policy for one important reason. Usually hail storms will ruin only a portion of your crops while leaving other parts intact. Sometimes the deductible on MPCI is more than the amount of damage so you would experience that loss. The premiums on your basic hail are most often much less than the damage as well, which is why it makes good business sense to carry basic hail.
Benefits of Basic Hail Insurance
One of the biggest benefits of basic hail insurance is that there is no deductible. This can be a significant factor if you buy up to 100% coverage. While you could also get 100% coverage under MPCI policies, the amount covered will be reduced by the amount of the deductible. Also, loss calculations are much quicker than with Multiple Peril Crop Insurance policies and these policies usually also cover fire, vandalism, lightning and transport to the first area of storage. Basic hail also covers your crops by the acre where MPCI usually covers the whole crop.
Compare Rates before Choosing a Policy
Just like any other type of insurance, rates are likely to be highly competitive. Take the time to do a little browsing around the internet before deciding on an insurance company to go with. Certain factors may affect the premiums you pay, such as whether or not you have file a claim in the previous few years and how prone your area is to hail damage. Remember, insurance rates are based on the amount of risk the insurance company has to take on. In areas of the country that sustain less damage from hail, policies may be less expensive. Legislation in the state you live in may also affect hail insurance rates as well. By comparing quotes you will be able to find the most coverage for the lowest premiums.
When all is said and done, insurance can mitigate your risk up to 100%, even in areas that are not especially prone to hail damage. This is especially true if you have commercial crops that would create significant financial loss if damaged by hail, vandalism, lightning or loss during transport, There are a number of plans to choose from, but basic hail does not have a deductible and tends to provide the best coverage for the money. Finding reasonable rates is easiest online where you can compare quotes side by side in order to find a policy that affords the coverage you need at the lowest possible price.