Hail Insurance on Rape- Worth Doing Or Not?

[Nigel Wellings]

With harvest values presently being enough to see outputs of over £1000/acre for OSR I have noticed we are starting to get a number of enquiries from growers about the cost of Insuring against hail. I think there were a number of losses last year in the Cambs/Essex area that may have made people consider it also. There are very few, if any, Insurers that will quote hail cover in isolation. First port of call if you are interested in a quote therefore is to speak to your existing farm Insurers. Prices vary generally depending on the County you are in and if you have suffered previous losses. We have done 6 cases in the last few weeks that have cost £10-£12/acre.
£10-£20/acre to protect against £1000 of loss seems probably worthwhile to me. I always take the view that if whilst desiccating you could spend another £10-£12/acre to put another product in the tank to protect against hail it would be a bit of a no brainer.
Probably less than 10% of growers have had the cover in the past, but the potential value in this years crop definitely makes it worthwhile considering.
What are peoples thoughts?

 

[teslacoils]

£12 sounds very affordable.

 

[tullah]

The underwriters have already worked that one out that the premiums are in excess of what they pay out.

 

[DrWazzock]

Can be a wipe out. Once left a field over the weekend as it was coming in at 12% and farmer was too tight to dry it. Went back Monday morning the whole 25 acres was on the floor, shelled out, white. Combined it and got 2cwt to the acre of the green stuff that was left. Even knocked some wheat out that year. Hell of a storm.

 

[4course]

weve taken cover for the first time ever. Simply because our insurers when asked said any claim would be based on the last couple of years yield and not having grown osr for 15 years last year had the first crop since and it produced over £1000/acre so thought the premium worthwhile as again its being grown on none osr land and prices are in front with other than a bit of headland pigeon damage looks well

 

[snipe]

On a similar topic. Could pigeon damage be covered by insurance?? If hail can be insured for which is an act of god/ natural event why not damage by animals??? If a bird flys up and smashes your windscreen that would be covered.

 

[Kidds]

It isn't really about what can or can't be insured it is about the level of premiums.
You can insure anything but the premiums may be at a level where it isn't worth it or the risk is more attractive than the cost of insurance.
I have no personal experience of insuring crops but I am lead to believe after the first claim the premiums become prohibitive, most especially with hail.

 

[snipe]

Would all events unless stated otherwise be covered under “interruption to business“ we had a couple of acres of osr destroyed by 4x4 and this was covered by interruption to business

 

[Nigel Wellings]

On a similar topic. Could pigeon damage be covered by insurance?? If hail can be insured for which is an act of god/ natural event why not damage by animals??? If a bird flys up and smashes your windscreen that would be covered.

Got asked couple of years ago could we provide cover against flea beetle damage for one of the seed companies. Insurers pretty quickly said NO on that one. Fairly certain response would be the same re pigeon damage

 

[Nigel Wellings]

It isn't really about what can or can't be insured it is about the level of premiums.
You can insure anything but the premiums may be at a level where it isn't worth it or the risk is more attractive than the cost of insurance.
I have no personal experience of insuring crops but I am lead to believe after the first claim the premiums become prohibitive, most especially with hail.

Did hail insurance on OSR for a number of years in France. When we grew 600-800 acre blocks I felt risk was too high to take ourselves. Because such a high acreage was insured in France the premium did not jump so drastically after a claim. With a much lower acreage insured in the UK it is possible the premium could jump more after a major claim but at least by that point you have had a payout and decide whether to insure the next year or not.

 

[Nigel Wellings]

Would all events unless stated otherwise be covered under “interruption to business“ we had a couple of acres of osr destroyed by 4x4 and this was covered by interruption to business

That claim would have been paid as 'malicious damage' under the business interruption policy. This policy as with any other insurance policy will only cover stated events such as;fire, theft, malicious damage, impact etc. No insurance policy will cover you for all events.

 

[curlietailz]

Well I’ve taken hail insurance this year on OSR too. Crops look well and value is good. We’ve had hail the size of grapes at times in the last few years so with climate change etc thought it worth it
Rough estimate cost about 1.3% of the value insured. ( that’s if I’ve worked my % ages out right. Ha ha)

 

[Flatlander]

Hail insurance is very common here. But then again so is hail. Most years we get some damage but gladly never much. Never carried it myself but have seen maize 7 feet high reduced to stumps. When or if gm crops are allowed in the uk having the anti pod shatter gene that we have now will change the stress level growing it. I hade canola ready to harvest with hot 60 mph winds hitting it fir a day and not a pod opened.

 

[Nigel Wellings]

Hail insurance is very common here. But then again so is hail. Most years we get some damage but gladly never much. Never carried it myself but have seen maize 7 feet high reduced to stumps. When or if gm crops are allowed in the uk having the anti pod shatter gene that we have now will change the stress level growing it. I hade canola ready to harvest with hot 60 mph winds hitting it fir a day and not a pod opened.

I didn't know that an anti pod shatter gene had been incorporated into GM canola. The UK/European varieties have all got better resistance to it over last 20-30 years but even with pod sealants we can spray on current varieties getting Canola/rape into the shed at harvest asap is always a huge worry/stress factor. Not having to worry about that so much must be a big plus factor.

 

[Flatlander]

I didn't know that an anti pod shatter gene had been incorporated into GM canola. The UK/European varieties have all got better resistance to it over last 20-30 years but even with pod sealants we can spray on current varieties getting Canola/rape into the shed at harvest asap is always a huge worry/stress factor. Not having to worry about that so much must be a big plus factor.

Been here for about five years. I was skeptical at first and changing from a well proven variety that served me well to a new trait that’s wasn’t time tested but seeing it after that wind storm I won’t be going back. Even a dry ripe pod can be bent at 45 degrees with out popping open. Need a tighter concave setting to make sure the pods open up but nothing that would cause concern.

 

[Fen Boy]

We have been quoted £28 per £1000 insured. So 2.8%

 

[Nigel Wellings]

We have been quoted £28 per £1000 insured. So 2.8%

Sounds strong compared to @curlietailz and the quotes I have seen over last few weeks. There is an element of the rating based on postcode,problem could be that if somebody in that postcode area has had large loss in last few years that could affect pricing.

 

[JCfarmer]

We have been quoted £28 per £1000 insured. So 2.8%

About £20t!

 

[Flatlander]

Sounds strong compared to @curlietailz and the quotes I have seen over last few weeks. There is an element of the rating based on postcode,problem could be that if somebody in that postcode area has had large loss in last few years that could affect pricing.

praires are divided up in to risk areas by crop insurance then a base rate for premium is set then each area is a multiple of that eg my risk are is number 12 and we pay at 2.5 base rate. One of the lower. Some are above three times. I just checked for some detailed info and they will only cover 400$ per acre and that would cost 10$ an acre. So 2.5% premium. 5 % deductible.

 

[Fen Boy]

Sounds strong compared to @curlietailz and the quotes I have seen over last few weeks. There is an element of the rating based on postcode,problem could be that if somebody in that postcode area has had large loss in last few years that could affect pricing.

We haven’t taken out hail insurance in the past but with OSR values at £1000+ per acre for harvest we thought we would enquire. I don’t think we are in a high risk area. I don’t know anyone locally who has lost Rape to hail.