Proprietary insurance in agricultural industry

The property of agricultural industry is always in zone of some risk. It is connected with distant location of such property and with strong dependence on whims of nature. Hail, hurricanes, droughts and many other things don’t promote confidence of owners. Risks are connected with death of animals from epidemics or accidents, and with natural cataclysms. Also, agricultural buildings are exposed to certain risks. There also risk of sudden transfer or analysis of buildings because of coming nearer threats.

So, the insurance of property which is estimated from net book value minus amount of wear or necessary depreciation is included into property insurance of agricultural industry. Expenses incurred as a result of salvation, renovation after insured event.

Thus insurance payment under the article “agricultural plants” can be calculated from average value of insurable property determined for each plant separately, product cost from it and cost of average crop value.

The rates offered to the insurer for payment are calculated depending on territory of seeding and type of planted crop. Data which insurance companies use are taken from annual average reports and also statistical data of the region. The estimated value is determined by groups of animals or agricultural plants.

It is clear that the same agricultural plants in regions with frequent natural cataclysms or epidemics will have much higher rate of insurance premiums than in less problematic regions. Plant or cattle with low degree of stability will also be referred to a risk group with the increased rate on insurance.

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