melloInsurance

Serving our clients, Serving our community

Hail Damage

Why is my neighbours hail claim being handled differently than mine?

Summer in Langham 2018 – July 7th to be exact, will be a storm to remember.  How do I remember the date? Well, when you fill in the same form over 300 times with the same date, it turns into “clockwork”.  What form was I filling out? A property claim form reporting the hailstorm damage to homes, cars, trailers, and sheds which notifies the insurance company of the losses sustained through the storm.  

Hail claims are about as much fun as getting your teeth pulled! You suffer damage to your property, due to a storm you didn’t ask for, you then have the privilege to talk to an adjuster – who may have not had his coffee yet; and in the end, your neighbour John, got his full roof replaced, and you only got one slope done!  

Did anyone feel some emotions reading that? When it comes to an insurance claim we set our expectations a certain way. Sometimes we expect no settlement, and other times we expect the world, because that is what our friends or neighbours received. However, emotions can take the logic out of the equation and there are some questions to consider:  

Question #1- Are all houses created equal?  That’s a big negatory Tomahawk!

Question #2- Are all insurance policies created equal? That is a negative as well.

Question #3 – Are all insurance companies equal? They try! But no, they handle things slightly differently to set themselves apart.

Just like homes, insurance policies are not created, designed or worded the same.  Some houses are more elaborate, some have high end components, and some have basic ones. Some are old and some are new. Some homes are big, others small, some short and some quite tall!  Now before I turn this into a Dr. Seuss children’s book, I’ll draw the line of comparison.

Insurance products are also quite different from each other, and they all carry different clauses and benefits. While one policy promises to color match and wrap an entire home for partial damages, another will only repair what was actually damaged, even if the colors can’t be matched 100%. Some companies will pay for the replacement cost of your shingles right up to their expiration date, while others only allow replacement cost coverage for the first 15 years, then the coverage changes to the actual cash value from that point forward. Of course, these differences are comparable to the quality, square footage, slope and stories of your home which in the end affects the price tag. If you want the size, the quality and the finish of a luxury home, you will pay for it. Likewise, if you want the luxury of longer replacement cost coverage terms and color matching coverage, it comes at a higher price.

Every item you buy has a corresponding price tag. The better the quality of the home build, the higher the cost.  The same coincides with insurance products, and we really can’t expect anything different. The quality of settlement you receive in the event of a claim directly coincides with the coverage you buy.  You want the full meal deal you’ve got to pay for it.

The days of a simple “easy-to-read” insurance policy is no longer, and to read the fine print of each one individually is nearly impossible. To find out what type of policy coverage you have purchased or if you have questions, talk to your broker. They will be able to tell you if your policy is the equivalent to a Cathedral Bluffs mansion, or if you are more in the 350 square foot cabin range.  Whichever you prefer, it’s important to be informed and to know what you have – that way you can decide to make a change/upgrade or at least it will manage your expectations when the hail hits, and you’ll have a less frustrating time in settling your claim.

Our job is to assess the risks to your home, and then to give you a policy that fits your needs and your budget. Every person has different requirements when it comes to insurance. They need it because the bank says they need it. They want the best coverage because it is the biggest investment of their life. Maybe the person is really handy and can fix most things, so he needs less coverage because he won’t ever put in a claim. Every person/home is different. However, this is just a scenario to show that what you pay for can directly translate into what type of coverage you end up having. Please call us if you want to learn more or would like to make changes to your policy.

Why should I carry Hail Insurance on my crops?

Weather is one of those things that we all talk about….daily. It’s one of the worlds most common used “ice-breakers.” Speaking of ice breaking, hail can come in a hurry and do a whole lot of breaking. Whether (weather?) the damage occurs to your vehicle, house, garden or field, you should carry hail insurance on your property.

Where can I insure my crops?

While you can insure your crops for certain perils such as: Flood, Fire or Drought with Saskatchewan Crop Insurance, and you can purchase Hail Insurance coverage through our office or your local municipal office. We have 2 major carriers: Coop Hail Insurance & Palliser Insurance. Both companies are extremely reliable, with competent adjusters and great customer service.

How do I insure my crops?

When you come in to our office to insure your crops, you will need to know your land locations that these crops are located on. We will need to know the type of crops, and the number of acres that was seeded on each location and the value you want to insure per acre ($100/acre).

With that information, we are able to calculate a rate for your hail insurance. Each crop can withstand hail differently, so the rate can fluctuate based on the type of crop. For example, Lentils may have a rate of 1.75 x Basic Rate. Each company may vary on these surcharges, so it’s important to talk to a broker on which company offers the best products for your crop.

When does my policy become effective and for how long?

When a Hail Insurance policy is purchased, the policy becomes effective at 12PM (Noon) the following day. Most companies stop offering hail insurance coverage around August 15th. That deadline may come sooner if the insurance company has met their capacity. Policies expire on October 15th or when the crop is harvested before that time.

How long do I have to file a claim on my hail insurance?

If you notice your crop has been hit by a hailstorm, you have 72 hours to complete a “Notice of Loss” form and have that submitted via mail, fax, email or online. The Notice of Loss form is attached with every policy when they are issued. You cannot file a claim over the phone as the insurance company must have a completed Notice of Loss form before adjustment can proceed. If you need help filling out this form or submitting it; we would love to help you out.  

If you are busy harvesting when this hailstorm hits, it is important to understand the protocol on adjusting crops that need to be harvested.

  1. Where the crop is being turned under, cut for feed or straight combined; leave standing and undisturbed 20×20 foot strips, 100 feet in from the outside edge of the field in each corner.
  2. If the crop is ready for swathing, leave no crop standing. Swath it all down as the adjuster will do his adjustment from the swath. ***EXCEPTION: Leave standing
  3. Where the swathed crop is being harvested, leave an undisturbed 30-40 foot strip of swath, 100 feet or at least 3 rows in, from the edge of the field in each corner. For fields in excess of 80 acres leave an additional three strips down the centre of the field. Diagram below.

If a hail claim has been filed and sufficient undisturbed evidence of the crop has not been left for inspection, the question of liability is decided by the insurance company at head office.

field-strips for hail insurance claim during harvest
What if I cannot afford the premium for full coverage?
There are a number of ways to bring your costs down when insuring against hail damage. You can put a deductible on your policy. We recommend placing a smaller policy with full coverage ($100/acre) and then having a second policy on the same crop with a 20D deductible to reduce premium but provide value if you have a total loss or a large percentage of loss. For more information on deductibles, please contact our office.

You can also defer payment until October 1st if that would be beneficial. There is a 5% finance fee. But this way you can make payment at a later date. We also recommend purchasing on your credit card, as this will buy you some time based on when your monthly credit card payments come due.

There are many variables when purchasing your hail insurance. Come and get a quote from our offices to see how we can insure your land against a potential disaster. It is important to understand how a claim works and what is your responsibility when a hailstorm comes around. If you need more information about this process, please contact our office. That being said, good luck! We hope you have a successful year!