It’s summertime in Alberta, and with the season comes an increased potential of volatile storm activity. Depending on your insurance coverage with Agriculture Financial Services Corporation (AFSC), you may have protection against losses related to lightning strikes and accidental fires.
“Agriculture is filled with unpredictable events, including the weather,” said Ken Handford, senior product coordinator. “Alberta’s seemingly unpredictable summer weather means farmers face a risk of lightning strikes or accidental fire damaging their crops.
“However, many of AFSC’s insurance offerings include protection against losses related to lightning and accidental fire.”
Hay, Export Timothy Hay, or Annual Crop Insurance and Processing Vegetable Insurance
Clients with Hay, Export Timothy Hay, or Annual Crop Insurance and Processing Vegetable Insurance are covered when insured crops suffer production losses due to fires caused by lightning. Total production must be below their insured coverage, and losses are measured and paid at the end of the year on a post-harvest assessment.
Hail Endorsement and Straight Hail Insurance
For annual crops with Hail Endorsement coverage, clients have spot-loss coverage due to accidental fire and fire due to lightning. Annual crop or hay fields insured under Straight Hail Insurance have the same spot-loss coverage as Hail Endorsement.
Coverage ends when the earliest of the following occurs:
- the crop is harvested or put to another use,
- the crop is abandoned because of no harvest value,
- midnight October 31.
Clients have 14 days to report fire damage to AFSC under Hail Endorsement or Straight Hail Insurance.
Satellite Yield Insurance and Moisture Deficiency Insurance
The Spot-Loss Fire Benefit is included with Satellite Yield Insurance and Moisture Deficiency Insurance for insured pasture acres. It protects against both accidental fire and fire caused by lightning. A client must have a minimum of 100 insured pasture acres burned to qualify for compensation.
Spot-Loss Fire payments compensate clients for production losses in the current year as well as the following year, as it is recognized burned land usually takes at least two years to recover. Coverage ends February 28 of the year following the growing season. Clients must notify AFSC within 14 days of the start of the fire on pasture acres.
Reporting fire damage
When reporting fire damage, clients must provide the land location where damage occurred, number of acres damaged, date of the fire, cause of the fire and any relevant documentation from the fire department. AFSC will not pay for any fire losses in cases where those losses are recoverable from other insurance sources, or legal remedy.