With recent wind warnings and events, we felt it was a very pertinent time to share this information.
From Richard’s desk:
It’s been about 6 years since we started to see the upward pressure on hail and wind insurance rates in Nebraska and that pressure will continue. We have heard rumors that one AIP will only offer 110 production plans this year and will not offer the 120 plan that most farmers have been purchasing.
In 2020, Nebraska farmers paid $239,189,579 dollars of hail premiums, the largest amount of any state. That sounds like a lot of money paid as premiums, but the insurance companies paid out $375,530,853 of money in loss payments. That is $1.57 in losses for every dollar of premium. The AIPs cannot afford to take losses like this.
As an agency, this year most of the claims that we turned in were for wind losses and for Nebraska farmers, wind and hail are our biggest production risks. The 120-production plan has been the go-to policy for most farmers for the past 15 years. To control costs while still adequately managing risks there are many different hail and wind policies available.
As farmers ourselves, we face the same problem and will also be carefully evaluating the choices. As an insurance agency, we would be happy to discuss those choices with you. Contact us at 402-843-5342 to set up a time to talk.
