It’s summertime in Alberta, and with the season comes an increased potential of volatile storm activity, combined with extremely dry conditions in some areas. These circumstances can lead to an increased risk of a lightning strike or accidental fire, which can have an impact on crops province-wide.

Coverage for losses due to Fire

Clients must notify AFSC within 14 days of the start of a fire on their land and provide any relevant documentation from the fire department. Clients will also need to complete a Fire Damage Claim Form.

AFSC will verify whether the fire was started accidentally or if it was caused by lightning.

Annual Crops

Clients with 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.

For annual crops with Hail Endorsement coverage, clients have spot-loss coverage due to accidental fire and fire due to lightning. Fields insured under Hail Insurance have the same spot-loss coverage as Hail Endorsement.

Perennial Crops

Clients with Hay Insurance and Export Timothy Hay Insurance are covered when insured standing 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 insurance also provides protection for spot loss damage for accidental fire or fire caused by lighting.

Spot-Loss Fire Benefit for Pasture

Spot-Loss Fire Benefit is included with Satellite Yield Insurance and Moisture Deficiency Insurance programs for insured pasture acres, and protects against both accidental fire and fire caused by lightning.

A client must have a minimum of 100 insured acres burned to qualify for compensation.

Spot-loss fire payments are intended to compensate the client for production losses in the current and ensuing year as it is recognized that burned land generally takes at least two years to recover.

There is a set Schedule of Compensation Rates table.  Compensation is dependent on the month the fire started.  Indemnities are calculated less a 10 per cent deductible in each year.

AFSC will not pay for any fire losses in cases where those losses are recoverable from other insurance sources or legal remedy. For any questions, or to report fire damage, please contact your branch office or our Client Contact Centre at 1-877-899-2372.