Volatile storm activity coupled with extremely dry conditions in some areas means there is an increased risk of lightning strike or accidental fire affecting crops throughout Alberta. Depending your insurance coverage with Agriculture Financial Services Corporation (AFSC), you may have protection against losses related to lightning strikes and accidental fires.
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. The client’s reported production has to be below their insured coverage, and losses are measured and paid at the end of the year on a Post Harvest Inspection.
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 the earliest of the following:
- when the crop is harvested,
- released to be put to another use,
- abandoned because of no harvest value,
- or 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 and ensuing year, as it is recognized burned land usually takes at least two years to recover. Coverage ends as of February 28 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 of the damage, 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.