Have you heard of Peak Season Coverage, but you're still unsure of what it is or how it works? Don't worry! We can get you covered (pun intended).
Peak Season Coverage is an optional coverage that we can add to your farmowners policy. The endorsement to the policy (generally speaking) insures you against grain loss from a covered peril (fire, wind, hail, etc). As most farmers do not keep the same amount of grain in their bins year round, this is designed to be a more cost efficient way to insure the grain. Instead of paying for the coverage year-round, the coverage is set for a defined period of months. Insureds, with the help of their agent, determine the limit of coverage they would like as well as the time frame which they would want the coverage to be in force each year.
For example, if a client harvests at the beginning of October and they try to have their bins empty by April of this year, they may carry a limit of $100,000 of coverage from October 1 through April 15 each year.
But wait, I've already purchased crop insurance? Why peak season?
Peak season covers you against loss once the grain is out of the fields. Crop insurance protects you if your crop does not perform well in the field due to natural disasters.
Yeah.. but I don't think it is likely that I will need this coverage. Take a moment to research the August 2020 Derecho that went through Iowa and Illinois. Just looking at the pictures will be enough to make you nervous. Now a derecho doesn't come along every day, but other things do-- wind storms, fires, tornados, etc. and these perils can drastically damage your grain bins and the grain inside.
Fall is the time that our Ohio and Indiana insureds are harvesting and filling up their bins! If you have a minute to take a break during this busy season, take a moment to call/email/text your agent and confirm that your peak season coverage is large enough to cover your annual capacity!
Have a safe and blessed harvest season!