Though many Canadians are anticipating summer weather, however fleeting, many Albertans are expecting hail.
June is hail season in parts of the province and Jesse Cole, research analyst at the province’s Agriculture Financial Services Corporation (AFSC), said there was a 90% pickup on hail coverage from its policyholders.
“We have a large crew of adjusters that goes out and looks at the hail damage and we cover everything from 10% to 100% damage, with a deductible of course,” Cole explained. “If you’re at a 10% level we pay on a spot level basis and it just means that you can have parts of the field that are damaged, or smaller acres, and your farm doesn’t have to be completely damaged (to get indemnified).
“One of the reasons people really like the crop insurance in Alberta is because of that hail endorsement option. The rates range from 3% all the way up to 14%.”
The AFSC covers crops in Alberta on a grid basis, comprised of 3,600 square kilometres grids, and based on historical hail damage. Cole added the AFSC sells standalone hail insurance, as well as part of an extension to yield coverage.
“There’s a high correlation between precipitation and hail. We had a pretty wet year so this year we’re expecting another year where there’s quite a bit,” Cole said.
“Somewhere in the province, it’s hailing.”
Source: Insurance Business Mag