CARMI, Ill. (RFD-TV) — As farmers assess crop damage from recent hurricanes, crop insurance specialist Brooks York with AgriSompo is highlighting additional coverage options designed to protect producers from losses caused by hurricanes and tropical storms.
In his interview with RFD-TV, York said standard multiple-peril crop insurance covers many of the risks farmers face, but additional endorsements can provide specific protection against hurricane-related weather events.
“There’s a product, a couple of products, actually, that protect against hurricanes and tropical storms,” York said. “We call one of them HIP-WI, and there’s also a Tropical Storm endorsement that can be added on to that base policy.”
Additional Protection for Hurricane Damage
HIP-WI stands for Hurricane Insurance Protection-Wind Index. York said the endorsement is primarily available in coastal states, where hurricane damage poses a greater risk to agricultural production.
“It’s there, mainly coastal states,” York said, noting that Hawaii is also among the states where coverage is offered.
He said the coverage can be especially relevant when hurricanes affect crops still in the field, including corn and cotton.
York also noted that hurricanes moving farther inland can damage crops not yet harvested.
How HIP-WI Triggers a Claim
Unlike traditional crop insurance claims that assess losses on an individual farm or field, HIP-WI uses a countywide trigger.
“It’s unique in the fact that it is not farm by farm. It’s actually not field by field,” York said. “It’s triggered on a countywide basis.”
For hurricane coverage, the trigger is based on sustained winds of 74 miles per hour or greater, using National Oceanic and Atmospheric Administration data for the county and adjacent counties.
York said that structure distinguishes the endorsement from coverage based solely on damage an individual farm experiences.
“It’s a county-by-county, and sometimes that can be a good thing, sometimes that can be a negative thing, depending on how widespread it is,” he said.
Understanding Coverage Options
York said HIP-WI and the Tropical Storm endorsement offer additional coverage for qualifying weather events. Availability depends on location and applicable insurance provisions.
He encouraged farmers to understand how the coverage works before a storm arrives, especially because the countywide trigger may not match the damage on an individual operation.
“Nonetheless, it is additional coverage that the industry offers for times just like these,” York said.
