Crop Insurance Hurricane Endorsement Available

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The U.S. Department of Agriculture’s Risk Management Agency (RMA) is now offering a new crop insurance endorsement, Hurricane Insurance Protection – Wind Index (HIP-WI). HIP-WI covers a portion of the deductible of the underlying crop insurance policy when a county, or adjacent county, is within the area of sustained hurricane-force winds.

HIP-WI provides coverage for 70 different crops, including all citrus, insured under the Common Crop Insurance Policy, Basic Provisions for both catastrophic and additional coverage policies.

April 30 is the deadline to purchase HIP-WI coverage for the 2020 crop year. Crop insurance is sold and delivered solely through private crop insurance agents.  

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“This new hurricane endorsement provides some added protection for producers along the Gulf and east coasts as well as Hawaii,” said RMA Administrator Martin Barbre. All of Florida and Louisiana are on a map of available counties, along with parts of other states bordering the Gulf of Mexico. Parts or all of the states along the east coast are also on the map.

To be eligible for the HIP-WI Endorsement, growers must have an insurance policy under the Basic Provisions with the same insurance provider and elect a HIP-WI coverage percentage.

In the initial year HIP-WI is elected, coverage will not begin until 14 days after the sales closing date. If the underlying crop policy also requires a waiting period, the wait periods will run concurrently.

Growers are not required to submit acreage reports for HIP-WI, because HIP-WI uses the underlying policy’s acreage report.

“The full value of the HIP-WI Endorsement is paid if a county, or adjacent county, is within the area of sustained hurricane-force winds from a named hurricane based on data published by the National Hurricane Center,” a notice from RMA stated. “It is possible that your individual farm may experience reduced revenue or reduced yield due to hurricane-related causes and you do not receive an indemnity under HIP-WI. You are not required to file a notice of loss.”  

Find more information on the HIP-WI endorsement here.

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Ernie Neff

Ernie Neff

Senior Correspondent at Large