Wind & Hail Policies

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Hail

Production Hail (ACH)

  • Deadline: June 1st
  • Pays by: Lower of Production Deficiency or Assessed Damage
    • Claims are deferred until harvest.
  • Guaranteed on: APH

*You can grow yourself out of a loss. 

Straight Hail (CHL)

  • Deadline: Up to 2 hours prior to a hail storm
    • Note: Wind coverage must be added to an underlying hail policy by June 1st.
  • Pays by: Percentage of assessed damage
    • Deductibles & payment factors vary by policy type. See chart below for a visual example.
  • Guaranteed on: Dollars of coverage purchased

*Direct payment by assessed loss percent & policy structure, deductibles, etc.

Wind & Green Snap Endorsements

Deadline: June 1st

Optional endorsement added to hail policies to cover direct loss due to green snap and/or lodging caused by wind. 

  • Can be added to Production Hail policies & Straight Hail policies. 

Hail Example
150 APH | 80% RP | 20% Assessed Hail Damage | 150 bu/ac Harvested | 100 Acres

Production Hail (ACH)

120% of Modified APH | Selected by Producer

Production Hail Guarantee 

150 APH × 120% = 180 bu/ac 

180 bu/ac × 100 acres = 18,000 bu

MPCI Guarantee 

150 APH × 80% Coverage = 120 bu/ac 

120 bu/ac × 100 acres = 12,000 bu

Bushels covered by Production Hail 

18,000 bu – 12,000 bushels = 6,000 bu

Production Hail Limit of Liability 

6,000 bu × $3.96 (SMP)$23,760.00 

Production Bushel Loss 

18,000 Production Hail Guarantee – 15,000 bu Harvested = 3,000 bu Loss

% Production Deficiency 

3,000 bu Loss / 18,000 Production Hail Guarantee = 17% Deficiency

Lesser of Production Defiency & Assessed Damage 

17% Production Deficiency 

Note: 17% Production Deficiency is less than 20% Assessed Hail Damage. If the Assessed Hail Damage were 15%, that figure would be used instead in the calculation below. 

Indemnity 

17% Production Deficiency × 18,000 bu Production Hail Guarantee × $3.96 SMP = $12,117.60 or $121.18/ac

Note: Indemnity cannot exceed the above calculated Production Hail Limit of Liability 

Straight Hail (CHL)

$600 Coverage | Selected by Producer 

Loss Payment

$600 Crop Hail Coverage × 20% Damage/Loss = $120/ac Payment

Indemnity 

$120/ac × 100 acres = $12,000

Hail Policy Payout Cheat Sheet

These policy types fall into the "Straight Hail" category.