Step 1 – Notice of Damage or Loss of Production
A written notice of damage or loss of production for each unit is to be filed by the policyholder within 72 hours of the policyholder’s initial discovery of damage or loss of production, but not later than 15 days after the end of the insurance period unless otherwise stated in the individual crop policy. The policyholder should refer to the individual crop provisions for additional requirements in the event of damage or loss. These notifications provide the opportunity for the insurance provider to inspect the crop and determine the extent of damage or potential production before the crop is harvested or otherwise disposed of.
Do’s and Dont’s
The first thing you want when you have a crop loss is the fastest possible indemnity check, and the last thing you need is unnecessary delays or paperwork. These suggestions can help:
- Be sure you have filed a complete and accurate acreage report on a timely basis. And be certain your agent has all relevant information about your current farming operation.
- Never destroy any production or acreage until your agent has been notified and a loss adjuster has inspected the acreage.
- When harvesting, be sure to keep separate production records for each insurance unit. Do not commingle farm stored production from separate units in a single storage bin unless authorized by an adjuster.
- If you are unable to get into a field for harvesting prior to the end of the insurance period because of an insurable cause of loss, contact your agent immediately.
Step 2 – Inspection
After the insurance provider receives the written notice of damage or loss, it will be processed and, if necessary, a loss adjuster will be sent to inspect the damaged crop and gather pertinent information concerning the damage. If the policyholder wishes to destroy or not harvest the crop, the loss adjuster will gather the appropriate information, conduct an appraisal to establish the crop’s remaining value and complete any forms needed. If the crop has been harvested or will not be harvested by the end of the insurance period, and the policyholder wishes to file a claim for indemnity, the loss adjuster will gather the appropriate information and assist the policyholder in filing the claim for indemnity. It is the policyholder’s responsibility to establish the time, location, cause, and amount of any loss.
Step 3 – Indemnity Claim
After the claim for indemnity is processed by the insurance provider, an indemnity check and a summary of indemnity payment will be issued showing any deductions to the amount of indemnity for outstanding premium, interest, or administrative fees.