Hail insurance rates and deductibles
Hail Insurance rates are determined by a couple of important factors:
- Historical data along with the companies own "past claims" data to determine the risk for the area.
- The crops ability to withstand a hailstorm.
In recent years companies have introduced a number of new deductibles which increases hail insurance options available to you.
In many instances if you bought hail insurance from a traditional broker and you compared the rates of various companies for your
specific parcels of land, you would be shown a rate map. This map would have consisted of base premiums. The base premium would be
the companies determination of risk in that particular area. If you compared rates based on the base premium you may be in for a
surprise. In some instances various companies have different crop factors for the same crop. For example company A may charge two
times the base premium for canola whereas company B may have only charged 1.75 times. In this case even though the base rates were
the same the total premium would have been different.
With the recent inclusion of deductibles the calculation becomes even more involved. Not only do you have to calculate the base premium
multiplied by the crop factor, but now you have to multiply that by the deductible factor, given the deductible chosen. And once again
the same deductible may have a different multiple for different companies, thus the base rate may not even be close to the total premium when
the crop factor, and deductible are taken into account. In fact, the company with the highest base rate could end up with the lowest total premium.
Ehail has made this process simple for you by calculating the total premium instantly and providing the total premium. By doing this you always get an apples to apples comparison versus an apples to oranges comparison you may see elsewhere.
MINIMUM AMOUNT OF HAIL INSURANCE THAT CAN BE PURCHASED
The minimum amount of insurance/acre that can be purchased is $20/acre
The minimum amount of cash premium of an application for each company selected must be at least $50.00
MAXIMUM AMOUNT OF HAIL INSURANCE THAT CAN BE PURCHASED
Hail providers state that they will only insure an amount that would be reasonable for the crop at the time of insurance. For example
if you tried to place $1000/acre of insurance on a wheat crop obviously this is not a reasonable estimate of the value of the crop. However,
in addition to the reasonable factor hail insurance companies have different maximums that they will insure, these amounts could potentially vary between different crops such as canola, peas, wheat and barley. The following shows the
maximums for the companies represented. You do not need to worry about purchasing more than the maximum amount allowed by a hail
company on our site. If you attempt to purchase more than the maximum the site will reset the coverage to the maximum amount for you.
Butler (all crops) - $250/acre
Canadian Hail (all crops) - $150/acre
Co-op (all crops) - $200/acre
Farmers (all crops) - $300/acre
Henderson (all crops) - $250/acre
McQueens (all crops) - $300/acre
Rain & Hail (all crops) - $150/acre
Wray (all crops) - $200/acre
DEDUCTIBLES
In general the following seven deductibles are the most common offered by hail insurance companies.
Full Coverage
10% Disappearing Deductible
20% Disappearing Deductible
10% Deductible with Increasing Payment Factor
10% Straight Deductible
15% Straight Deductible
25% Straight Deductible
Excess Over 5% Loss - Disappearing at 25%
Excess Over 10% Loss - Disappearing at 50%
The following will provide a brief explanation of each deductible and a table showing how the payments work based upon various percentages of hail damage in the crop.
Full Coverage (Full)Under full coverage you are paid based on the amount of loss you sustain without any reduction or increase in payment.
| Full Coverage |
| % of Crop Lost to Hail | % of Coverage Payable |
| 10% | 10% |
| 20% | 20% |
| 30% | 30% |
| 40% | 40% |
| 50% | 50% |
| 60% | 60% |
| 70% | 70% |
| 80% | 80% |
| 90% | 100% |
| 100% | 100% |
10% Deductible Disappearing at 40% (10D)
Under this option a 10% deductible is charged on all losses up to 30%. Between losses of 30% to 40% the deductible begins to drop. Therfore, after 40% damage to the crop, the deductible disappears completely. The following table more clearly demonstrates how this works.
| 10% Deductible Disappearing at 40% |
| % of Crop Lost to Hail | Deductible | % of Coverage Payable |
| 10% | 10% | 0% |
| 15% | 10% | 5% |
| 20% | 10% | 10% |
| 25% |
10% |
15% |
| 30% |
10% |
20% |
| 31% |
9% |
22% |
| 32% |
8% |
24% |
| 33% |
7% |
26% |
| 34% |
6% |
28% |
| 35% |
5% |
30% |
| 36% |
4% |
32% |
| 37% |
3% |
34% |
| 38% |
2% |
36% |
| 39% |
1% |
38% |
| 40% | 0% |
40% |
| 50% |
0% |
50% |
| 60% |
0% |
60% |
| 90% |
0% |
100% |
20% Deductible Disappearing at 60% (20D)
Under this option a 20% deductible is charged on all losses up to 40%. Between a loss of 40% and 60% the deductible begins to drop, and after 60% damage to the crop the deductible disappears completely. The following table more clearly demonstrates how this works.
| 20% Deductible Disappearing at 60% |
| % of Crop Lost to Hail | Deductible | % of Coverage Payable |
| 10% | 20% | 0% |
| 20% | 20% | 0% |
| 30% | 20% | 10% |
| 40% | 20% | 20% |
| 41% | 19% | 22% |
| 42% | 18% | 24% |
| 43% | 17% | 26% |
| 44% | 16% | 28% |
| 45% | 15% | 30% |
| 46% | 14% | 32% |
| 47% | 13% | 34% |
| 48% | 12% | 36% |
| 49% | 11% | 38% |
| 50% | 10% | 40% |
| 51% | 9% | 42% |
| 52% | 8% | 44% |
| 53% | 7% | 46% |
| 54% | 6% | 48% |
| 55% | 5% | 50% |
| 56% | 4% | 52% |
| 57% | 3% | 54% |
| 58% | 2% | 56% |
| 59% | 1% | 58% |
| 60% | 0% | 60% |
| 70% | 0% | 70% |
| 80% | 0% | 80% |
| 90% | 0% | 100% |
| 100% | 0% | 100% |
10% Deductible with Increasing Payment Factor (10IP)
Under this option a 10% deductible is applied to all loses incurred. Thus any hail loss 10% or under will result in no payment to you. Once the loss exceeds 70% an increasing payment begins and increases by 1% for each % of loss greater than 70% until the total loss payable becomes 100% of the policy. This will occur at a 90% loss.
| 10% Deductible with Increasing Payment Factor |
| % of Crop Lost to Hail | Deductible | Increasing Payment | % of Coverage Payable |
| 10% | 10% | 0% | 0% |
| 20% | 10% | 0% | 10% |
| 30% | 10% | 0% | 20% |
| 40% | 10% | 0% | 30% |
| 50% | 10% | 0% | 40% |
| 60% | 10% | 0% | 50% |
| 70% | 10% | 0% | 60% |
| 71% | 10% | 1% | 62% |
| 72% | 10% | 2% | 64% |
| 73% | 10% | 3% | 66% |
| 74% | 10% | 4% | 68% |
| 75% | 10% | 5% | 70% |
| 76% | 10% | 6% | 72% |
| 77% | 10% | 7% | 74% |
| 78% | 10% | 8% | 76% |
| 79% | 10% | 9% | 78% |
| 80% | 10% | 10% | 80% |
| 81% | 10% | 11% | 82% |
| 82% | 10% | 12% | 84% |
| 83% | 10% | 13% | 86% |
| 84% | 10% | 14% | 88% |
| 85% | 10% | 15% | 90% |
| 86% | 10% | 16% | 92% |
| 87% | 10% | 17% | 94% |
| 88% | 10% | 18% | 96% |
| 89% | 10% | 19% | 98% |
| 90% | 10% | 20% | 100% |
Excess Over 5% Loss - Disappearing at 25% (5XS)
Under this deductible all loses over 5% are subject to a 5% deductible, however losses in excess of 5% are increased by 25%. Once the hail loss reaches 26% the deductible and increasing payment cease and it acts as a full coverage scenario would.
| Excess Over 5% Loss - Disappearing at 25% |
| % of Crop Lost to Hail | Deductible | Increasing Payment | % of Coverage Payable |
| 5% | 5% | 1.25 | 0% |
| 6% | 5% | 1.25 | 1.25% |
| 7% | 5% | 1.25 | 2.5% |
| 8% | 5% | 1.25 | 3.75% |
| 9% | 5% | 1.25 | 5% |
| 10% | 5% | 1.25 | 6.25% |
| 11% | 5% | 1.25 | 7.5% |
| 12% | 5% | 1.25 | 8.75% |
| 13% | 5% | 1.25 | 10% |
| 14% | 5% | 1.25 | 11.25% |
| 15% | 5% | 1.25 | 12.5% |
| 16% | 5% | 1.25 | 13.75% |
| 17% | 5% | 1.25 | 15% |
| 18% | 5% | 1.25 | 16.25% |
| 19% | 5% | 1.25 | 17.5% |
| 20% | 5% | 1.25 | 18.75% |
| 21% | 5% | 1.25 | 20% |
| 22% | 5% | 1.25 | 21.25% |
| 23% | 5% | 1.25 | 22.5% |
| 24% | 5% | 1.25 | 23.75% |
| 25% | 5% | 1.25 | 25% |
| 26% | 0% | 0 | 26% |
| 27% | 0% | 0 | 27% |
| 28% | 0% | 0 | 28% |
| 29% | 0% | 0 | 29% |
| 30% | 0% | 0 | 30% |
| 40% | 0% | 0 | 40% |
| 50% | 0% | 0 | 50% |
| 60% | 0% | 0 | 60% |
| 70% | 0% | 0 | 70% |
| 80% | 0% | 0 | 80% |
| 90% | 0% | 0 | 100% |
| 100% | 0% | 0 | 100% |
Excess Over 10% Loss - Disappearing at 50% (10XS)
Under this deductible all loses over 10% are subject to a 10% deductible, however the loss in excess of 10% is increased by 25%. Once the hail loss reaches 50% the deductible and increasing payment cease and it acts as a full coverage scenario would.
| Excess Over 10% Loss - Disappearing at 50% (EX 10 dis 50) |
| % of Crop Lost to Hail | Deductible | Increasing Payment | % of Coverage Payable |
| 5% | 10% | 1.25 | 0% |
| 10% | 10% | 1.25 | 0% |
| 11% | 10% | 1.25 | 1.25% |
| 12% | 10% | 1.25 | 2.5% |
| 13% | 10% | 1.25 | 3.75% |
| 14% | 10% | 1.25 | 5% |
| 15% | 10% | 1.25 | 6.25% |
| 20% | 10% | 1.25 | 12.25% |
| 30% | 10% | 1.25 | 25% |
| 40% | 10% | 1.25 | 37.5% |
| 45% | 10% | 1.25 | 43.75% |
| 49% | 10% | 1.25 | 48.75% |
| 50% | 0% | 0 | 50% |
| 51% | 0% | 0 | 51% |
| 55% | 0% | 0 | 55% |
| 60% | 0% | 0 | 60% |
| 70% | 0% | 0 | 70% |
| 80% | 0% | 0 | 80% |
| 90% | 0% | 0 | 100% |
| 100% | 0% | 0 | 100% |
10% Straight Deductible (10S)
When a 10% straight deductible is purchased payment is only made when the loss per acre exceeds the deductible amount. The percentage payable shall then be the percentage of loss less the deductible. Maximum loss payment under this option is 90%.
| 10% Straight Deductible |
| % of Crop Lost to Hail | Deductible |
% of Coverage Payable |
| 10% | 10% |
0% |
| 20% | 10% |
10% |
| 30% | 10% |
20% |
| 40% | 10% |
30% |
| 50% | 10% |
40% |
| 60% | 10% |
50% |
| 70% | 10% |
60% |
| 80% | 10% |
70% |
| 90% | 10% |
80% |
| 100% |
10% |
90% |
25% Straight Deductible (25S)
Under this deductible all losses are subject to a 25% deductible. Thus only on losses in excess of 25% will the producer be paid.
| 25% Straight Deductible |
| % of Crop Lost to Hail | Deductible | % of Coverage Payable |
| 10% | 25% | 0% |
| 20% | 25% | 0% |
| 25% | 25% | 0% |
| 30% | 25% | 5% |
| 40% | 25% | 15% |
| 50% | 25% | 25% |
| 60% | 25% | 35% |
| 70% | 25% | 45% |
| 80% | 25% | 55% |
| 90% | 25% | 75% |
| 100% | 25% | 75% |
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