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 30th.
- 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 30th
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 (June 1st Deadline) & 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
