Are you searching for a reliable Pearland TX Crop Insurance provider? If so, look no further than Texas Insurance Agency. Our team of insurance experts will help you find the right policy that will help protect your livelihood and investments.
Whether you are a farmer, rancher, or grower, crop insurance helps give you peace of mind when it comes to the loss of crops. There are times when natural disasters or other situations outside your control happen. Having crop insurance means protecting a portion of your revenue.
With the combination of significant and supplemental crop insurance policies, your insurance can cover everything from a volcanic eruption to hail to fire. Talk with your Texas Insurance Agency representative to learn more about the conditions and qualifications under which you can receive insurance coverage and file a claim.
What is Crop Insurance?
In the insurance world, a crop or commodity is any number of products that are grown or raised (as in the case of cattle) in large quantities. In order to cover your crops with insurance, each type must meet specific qualifications. Furthermore, the insurance plan you choose will vary from crop to crop, depending on several factors.
Due to the nature of a harvest cycle, crop insurance has a similar cycle. Each year, applications and claim filings are due by a specific cut-off date.
Purchasing crop insurance is the right step toward risk management and protecting your revenue that comes from a potential harvest.
Losing an entire crop to natural disasters, wildlife, or vandalism (crop circles, for example), can have damaging effects on your ability to run your farm and make a living.
In comparison to an auto or life insurance policy, crop insurance works much differently. Every year farmers plant crops in specific acreage amounts. One of the most essential steps to keeping your insurance plan is to record the number of crops you plant and harvest so that, when disaster strikes, you have paperwork and written proof of the quantities.
In fact, most insurance companies will require these production reports to be turned in on a regular basis. When you harvest the crop, the amounts are included in the report. The information you include in your report will include things like the crop, type, practice, and location.
Immediately after losing a crop, it is imperative that you call your insurance agent to file a claim. In the insurance world, this is called Notice of Loss.
Types of Crop Insurance
An individual plan refers to one that is taken out for a single farm or ranch. The following three insurance policies are examples of individual plans. These policies are governed by rules from the Federal Crop Insurance Program (FCIP).
Revenue Protection (RP)
An RP plan is a type of Pearland TX Crop Insurance that protects the revenue you lose when crops are lost due to circumstances beyond your control. When you file a claim, losses are calculated based on four values:
- Your coverage level.
- Share percentage.
- Projected harvest price of the crops that were lost.
- Average crop yield.
When applicable, the compensation amount will fluctuate. This is because initially, the calculation is made using a project harvest price. However, the actual harvest price may differ and therefore cause the claim amount to go up or down accordingly.
Yield Protection (YP)
YP plans are very similar to RP plans and are calculated in the same way, using the same values. However, in order for you to have YP insurance, those crops you with to insure under this plan must qualify for coverage under an RP plan.
Revenue Protection with Harvest Price Exclusion (HP-HPE)
HP-HPE insurance coverage is for when revenue is lost due to crop price decrease or lower than average crop yield rates. This type of insurance plan does not have the advantage of fluctuation as it does not take into account the actual harvest price.
Instead, any claims filed under this type of plan will be calculated based on the projected harvest price.
An area plan simply means that compensation under this type of insurance will be based on county yields or losses rather than that of an individual farm. The rules and regulations that govern area plans come from the Common Crop Insurance Policy (CCIP).
Area Yield Protection (AYP)
AYP plans are similar to individual YP plans with a singular difference. Instead of calculating claims based on the yield of an individual farm, it is based on that of the entire county. Additionally, while there are different qualifications, your agent will calculate claims using the same basic formula.
Area Revenue Protection (ARP)
Using the projected harvest price, an ARP claim can be calculated just like an AYP. If the actual harvest price differs, the overall claim amount will fluctuate.
Area Revenue with Harvest Price Exclusion (ARP-HPE)
Claim calculations for ARP-HPE plans are based solely on the projected harvest price, while loss estimates will be based on the actual harvest price. This plan also makes calculations that are dependent on the losses of an entire county.
Other Crop Insurance
Crop Hail (CH)
Crop Hail insurance refers to a private insurance plan that covers damage inflicted on your crops that is out of your control. Examples include hail, vandalism (i.e., crop circles), and damage during transit.
Named Peril (NP)
Named Peril refers to a group of supplemental insurance plans that you can get to cover gaps in your main crop insurance. Some examples of NP plans include the following:
- Grape Cluster Freeze
- Supplemental Replant Coverage
- Grower Citrus Freeze
- Pasture Fire Protection
- Weather Products
- Rain on Tomatoes (only available in California)
- Packer Citrus Freeze
- Raisin Reconditioning
- Almond Extra Harvest Expense
- Crop Fire
Pearland TX Crop Insurance
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For a Pearland TX Crop Insurance agent you can trust, call Texas Insurance Agency.