Does Crop Insurance Cover Damage From Hurricanes?

Hurricanes are powerful natural disasters that can wreak havoc on farmlands, causing substantial crop damage and posing financial risks for farmers. Crop insurance is designed to help provide a much-needed financial safety net for agricultural producers.

Contact Eastern Carolina Insurance Services today to get a crop insurance quote.

Understanding Crop Insurance

Crop insurance is a risk management tool designed to protect farmers and ranchers from financial losses resulting from various perils, including adverse weather conditions, pest infestations and price fluctuations. This coverage can help agricultural producers financially recover from significant crop failures or yield reductions and continue farming.

Crop insurance is primarily administered by the United States Department of Agriculture’s Risk Management Agency (RMA) and is available to farmers in designated regions and who grow certain crop types.

Types of Crop Insurance Coverage

Multiple peril crop insurance (MPCI) is the most common type of crop insurance. MPCI provides coverage against losses caused by adverse weather conditions. When a hurricane damages crops, farmers with MPCI can file a claim to receive compensation for the loss of production to help them recover financially and continue their farming activities.

Crop-hail insurance may help cover losses explicitly caused by hailstorms. However, crop-hail insurance may not cover losses from other perils, including hurricanes.

Named peril crop insurance may help cover risks listed in the policy. These policies are more limited in scope than MPCI and typically come with lower premiums. However, they may not provide coverage for hurricane-related damage unless explicitly stated in the policy.

When a hurricane strikes and damages crops, farmers with MPCI coverage can file a claim with their insurance provider to seek compensation for the losses. This process typically involves contacting a policyholder’s insurance agent, documenting the extent of the damage and providing evidence of the losses, such as yield records, production data and post-hurricane assessments.

It’s important to note that the coverage and compensation farmers receive will depend on various factors, including the extent of the damage, the specific crop type, and the policy’s terms and conditions. Additionally, deductibles and coverage limits may apply, impacting the overall payout.

Contact Us

Contact the crop insurance team at Eastern Carolina Insurance Services serving Goldsboro, Kinston, Pink Hill, Snow Hiss and Wilson, North Carolina to get the coverage you need for your agricultural operation.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.