Saskatchewan Hail Insurance Claims Jump

SASKATOON - Sep 7/06 - SNS -- Hail insurance claims in Saskatchewan rose sharply in August, creating a backlog of claims, reports the Canadian Crop Hail Association.

There was a flurry of claims throughout the month of August with a particularly severe storm occurring on the 23rd. That storm ran from the Alsask area along the Alberta border all the way to the Hanley area south of Saskatoon. Another storm cell the same night hit the Melville area.

"Our message to farmer/customers is please be patient," says Rob Goeres, chair of the Canadian Crop Hail Association. "Our adjusters are working as quickly as they can."

With harvest more advanced than normal, many producers have had to leave check strips in their harvested crops. Goeres notes that it's important for producers to leave undisturbed, adequate and proper check strips so as not to jeopardize their claim.

Hail claims submitted by Saskatchewan farmers were running at less than half the typical pace until August. Claim numbers for the year are now 13,445, which is considerably higher than last year at this time and well above the five-year average. Having a high volume of claims in a short time span has created the backlog.

Some companies are reporting an average value per claim at similar levels to last year. For others, the value per claim is higher this year.

There are a number of possible explanations for higher claims. Producers may have bought a higher level of insurance or insurance on more acres. As well, the severity of the hailstorms plays a big role.

Claims in August tend to be more expensive since the crop is riper and more prone to broken stems as well as shattered heads and pods.

Although hailstorms are less common in September, they can still occur. Last year, there was major storm activity on September 9 and 10 that caused a large volume of claims. Fortunately, this year's early harvest means less and less crop remaining in the field that can be damaged.