2008 Florida Fruit Crop Insurance Update
The new 2008 Florida Fruit Tree insurance policy has arrived with one significant change. With the inception of the new policy, Asiatic Citrus Canker (ACC) will no longer be a covered peril. With the removal of this previously covered peril, the cost for tree coverage has reduced significantly, and continues to be a valuable risk management tool against freeze, wind, and excess moisture.
The tree policy for 2008 improves your ability to manage the risk involved with growing Citrus, Lemons, Limes, Avocado, Carambola, and Mangos. By maximizing your ability to use greater risk management tools, you will be better prepared to protect your crop investment on a yearly basis.
As outlined in the next few paragraphs, the Fruit Tree Policy will offer coverage and options allowing you to better qualify the needs of your operation and tailor those needs towards the best policy for you.
The Basic Fruit Tree policy provides coverage on Grapefruit, Orange and Other Trees as well as Lemon, Lime, Avocado, Carambola and Mango Trees. Your coverage options range from Catastrophic (CAT) (minimal protection) up to 75% buy-up coverage. The cost for CAT policy is $ 100.00 per tree type, and all trees in the county are combined under a single unit structure.
The cost of Buy-up coverage varies. It takes into consideration several different factors, including location and coverage level, but also affords many options that are not available with a CAT policy. Increased basic policy protection can be purchased by paying a premium, per tree, for Buy-up insurance coverage levels ranging from 50% through 75%.
Along with the variable dollar premium for Buy-up insurance ranges, the policy includes the Occurrence Loss Option and the Comprehensive Tree Value Endorsement. Each option is specifically designed to better assist you with the risk management choices for your growing operations.
The Occurrence Loss Option can be purchased as an option the buy-up policy that eliminates your deductible. This greatly enhances the coverage against the perils of freeze, wind [hurricane], and excess moisture. By selecting this option and paying a small additional premium, you will eliminate your deductible and establish a 5% threshold of loss per unit. This will dramatically improve the coverage of your basic policy. For example, while considering the past several years of hurricane damage to your trees that caused substantial loss; it may not have been enough to satisfy your deductible. With the Occurrence Loss Option you would completely eliminate your deductible. Instead, you would be paid for any damage that you sustained once you have met the 5% threshold, per unit, of total damage for any one tree type.
Next, is the Comprehensive Tree Value Endorsement. This endorsement provides a valuable buy-up coverage addition. This endorsement allows you to recover lost income due to the destruction of your stage II and stage III trees from all covered perils. The Comprehensive Tree Value Endorsement is based on a reference price per tree type and your selected coverage, and the premium cost associated. The indemnity amount to be paid for each tree that is 100% destroyed, after satisfying applicable deductibles, is initially 50% of the total indemnity protection, with the remaining 50% being paid upon verification that the trees have been replanted, subject to policy terms. This is one more option that will provide greater alternatives in developing a more effective risk management strategy tailored to your growing operations. This endorsement is not available for carambola, lemon, lime or mango trees at this time.
Without exception, the 2008 Florida Fruit Tree Insurance Policy will become instrumental in the maintenance and development of greater risk protection for your growing operations. By providing greater insight into the availability of risk protection, these options are designed to promote awareness as to how we can minimize foreseeable risk related to the upcoming growing season. We can better protect ourselves against losses and damage caused by Freeze, Wind, Excess Moisture, Flooding due to high ground water, as well as other specified diseases, insects and/or parasites that may adversely affect our tree maturation.
As each grower strives to better prepare their growing operations through increased risk management awareness, the available policy is designed to maximize your decision-making ability in selecting the best policy for your needs. Growers should contact their crop insurance professional to discuss these important changes. Coverage under the old 2007 policies will expire on May 31st, 2007.
The Sales Closing Date to rewrite all 2007 existing policy holders is May 1st, 2007. Any current policies not rewritten by this date will be subject to a 45 day waiting period prior to coverage attaching.
For more information, contact Robert Stallings, Stallings Crop Insurance Corporation, 800-721-7099
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