Multiple-Peril Crop Insurance (MPCI) provides farmers with protection against losses due to weather and other perils for more than 76 crops across the country. Though it varies widely by policy and depends largely on the type of crop insured, some examples of covered hazards include damages from adverse weather, natural disaster, insect infestation, disease and wildlife damage. MPCI will never cover losses resulting from irresponsible farming practices, low prices or theft, though depending on the crop, it may cover costs of late planting, replanting, poor-quality yields and low yields. 

A Public-Private Partnership:  The U.S. Department of Agriculture (USDA) manages MPCI through a public-private partnership, meaning the federal government subsidizes the premiums, but private companies write all MPCI policies. There are currently 15 companies authorized by the USDA to provide MPCI coverage, and you can find that list here. The USDA requires these companies to sell MPCI policies to any eligible farmer who requests it, and the USDA Risk Management Agency (RMA) uniformly sets all the rates and determines what crops may be insured in which regions of the country.

Coverage Levels:  The RMA calculates amount of MPCI coverage based on the actual production history (APH) for each farm. APH numbers come from farmer production records from the past four, and up to the past 10, consecutive crop years. Coverage levels generally range from 50 to 75 percent of the farm’s APH, the USDA RMA grants up to 85 percent coverage for select crops in certain counties.

A MPCI policy also requires election of an indemnity price, which can be anywhere between 60 and 100 percent of the Federal Crop Insurance Corporation (FCIC) expected market price. Indemnities are paid when the grower’s yield falls below the calculated yield guarantee (APH times the insured acreage times the level of coverage times the farmer’s elected share).

Obviously, electing a higher indemnity price will result in higher indemnity payments and more expensive premiums, but in years with low yields or in the event of loss, the compensation will be much greater.

The When and the Why:  Unlike a crop-hail policy, which farmers may purchase at any time during the growing season, you must purchase an MPCI policy prior to planting. It is a continuous policy that will remain in effect for each crop year following acceptance of the original application. Farmers may change the policy on or before the sales closing date, and cancellations may only be made after the first effective crop year.

There are endless benefits to purchasing a MPCI policy, among them confidence, stability, improved financial management and comfort in knowing there is a safety net for unexpected loss and associated costs. Contact us at 717-263-4179 to learn more about your MPCI options.

With mergers and acquisitions occuring on a regular basis, the answer is probably yes.  While it’s important to update your own records with the change, promptly notifying your insurance carrier can save you a lot of hassle. 

If your homeowners insurance premium is escrowed through your financial instution, a name/ownership change may also affect where premium invoices should be mailed.  Making sure your your insurance provider has the correct information will avoid any late payment or potential cancellation problems.  In the event of a claim, settlement payment is often issued to the insured and any lien holder (including those on automobiles).  Again, having the appropriate information can save everyone time and aggravation. 

Not sure how your mortgagee is listed on your homeowners policy?  Need to change or remove a lien holder form your auto policy?  Call your agent for assistance.

For nontexters, that means “Drive Now, Text Later” – a warning that could save your life.  On November 9, 2011, Governor Tom corbett signed a bill into law prohibing texting while driving in Pennsylvania.  Trying to read or write a text message while driving puts your attention on the phone and not on the road where it should be.  Not only is this dangerous, it will be against the law in PA effective March 8, 2012; with a potential fine of $50.

Do you think it’s OK for a doctor to be texting, emailing or carrying on an unrelated phone conversation while performing surgery?  It may sound silly, but a driver and doctor both have the safety of others in their hands.  Distracted driving isn’t just a problem with teens; drivers of all ages are susceptible to being a danger when distracted.   

Text messaging is a useful way to communicate quickly, but safety should never be traded for convenience.  If you must make a phone call or text, pull off of the road in a safe area first.  Glancing down for just a few seconds can be a life or death situation.  Protect yourself and others — put down the phone when you’re behind the wheel.

The Greater Carlisle Chamber of Commerce is helping get the Carlisle Young Professionals organization up and running.  The group started to take shape earlier this year, when its President Michael Wilson and his wife decided to move to the area.  Wilson was Vice President of Harrisburg Young Professionals and is excited about having a group in the Carlisle area. 

Read more in the attached feature article from the Carlisle Sentinel:  Carlisle Young Professionals

There are times when the coverage you need is available exclusively from a nonadmitted carrier. What’S the difference between admitted and nonadmitted carriers, and what are the advantages and disadvantages of each? Should you be concerned if a carrier is not admitted? 

Admitted Carriers:  An admitted carrier is one that follows guidelines set forth by the state and is therefore licensed in the state or country in which the insured exposure is located. Of course, these guidelines vary from state to state, and some are more stringent than others. The obligation to follow state regulations and submit rates to a state’s department of insurance limits the flexibility of the insurer. If an admitted carrier becomes insolvent, the state guarantee fund steps in to pay out claims and premium remuneration where applicable.

Nonadmitted Carriers:  It’s a common misconception that nonadmitted is synonymous with nonlicensed. In reality, nonadmitted carriers do not have rates filed with the state and are not as highly regulated, but this also means they are not protected by state funds. They are sometimes able to offer better rates, and these carriers can base price on specific exposures. Certain complex risks require the use of nonadmitted carriers because the conventional insurance marketplace fails to provide adequate coverage. However, in the case of insolvency, the state will not pay the carrier’s outstanding claims and premium remuneration. 

Judging Financial Strength:  Since a nonadmitted carrier doesn’t guarantee payout from the state in the case of insolvency (as an admitted carrier does), one of the most important things to consider when purchasing coverage through a nonadmitted carrier is its A.M. Best rating, which rates a carrier on financial strength and size based on policyholder reserves. As long as you are aware of market conditions and are sure the carrier is reputable, buying coverage from nonadmitted carriers can be beneficial in several ways: they often provide lower rates, absolute control over coverage terms and coverage unavailable through admitted carriers (including specialty risks, risks that are unusual or those that are unusually large). 

Choosing Prudently:  It’s important to note that nonadmitted does not mean that an insurer is not regulated – many states do regulate nonadmitted insurers. In fact, many nonadmitted carriers are actually admitted carriers in other states. Nonadmitted carriers intentionally opt out of filing rates with the state not necessarily because they are unable to comply, but because doing so provides the advantages mentioned above. On the other hand, just because a carrier is admitted doesn’t mean it is financially solvent. Because of state restrictions on rates and forms of coverage, admitted carriers’ payouts may increase faster than permitted premium increases in certain classes of business, leading to financial instability.

When making your choice of insurer, you should not only ask yourself whether the carrier is admitted or nonadmitted, but also whether it is financially capable of paying claims in the event of an accident.

What do you think your belongings are worth? Conducting a thorough home inventory might be an eye-opening experience. The value of your furniture, DVD collection, clothing, books and moveable appliances can really add up.

Why do you need renter’s insurance?  Just because your landlord has coverage doesn’t mean that you do. In most cases, your landlord’s insurance policy covers only structural damage to the building itself. If the structure goes up in flames, your landlord’s coverage would include repairs to the building, but not reimburse you for your possessions. Renter’s insurance protects your possessions in case of a covered loss from fire, smoke, lightening, vandalism and theft. It also extends beyond on-premises theft and hazards, covering property that is stolen from your car, or is lost or damaged anywhere you happen to be.

Is coverage affordable? Because renter’s insurance covers only the value of your belongings, not the building, the premium is relatively inexpensive. For about the same cost as going to the movies once a month, you can gain peace of mind…regardless of life’s unexpected mishaps.

Thanks to HB 440, effective August 29, 2011, workers’ compensation coverage will be available to members of an LLC, and partners of a partnership.  The bill also formalizes the ability to do so for sole proprietors (while this was already done by the State Workers’ Insurance Fund, the bill codifies that the practice is licit).

If you have your eye on expenses, you may be tempted to trim your car insurance bill by dropping or lowering coverage. Dropping coverage like comprehensive or collision, or lowering liability limits, can cut your premium but could also put you at serious risk.

WHAT COVERAGE DO YOU NEED? An auto policy provides protection against property, liability and medical costs if you’re in an accident.  LIABILITY coverage pays for your legal responsibility to others for bodily injury or property damage. MEDICAL coverage pays for the cost to treat injuries, rehab and may include lost wages and funeral benefits.  UNDERINSURED MOTORISTS coverage pays for property damage and bodily injury caused by another driver whose coverage is insufficient to cover all damages.

Selecting the proper liability limit is fundamental.  100/300/50 means that you’re covered for up to $100,000 in bodily injury coverage per person, $300,000 in bodily injury coverage per accident, and $50,000 in property damage per accident. While it may lower your premium, reducing liability limits and dropping underinsured or uninsured motorists coverage could expose you to substantial risk.

BEST WAYS TO SAVE PREMIUM:

• consider raising your comprehensive and/or collision deductibles
• maintain a good driving record
• drive less to qualify for a low-mileage discount
• drive a car with safety features such as anti-lock brakes & airbags
• install an anti-theft device
• ask about multi-policy discounts

By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself and your family.  We can help you select limits that meet your unique needs.

According to the U.S. Department of Housing and Urban Development and a recent AARP survey, the vast majority of older Americans would like to remain living in their own homes for as long as physically and/or mentally possible. Of these individuals, most said they could live for an extra 10 years in their homes with some home modifications.   The type of modifications made will depend on the individual’s abilities and home layout.  Many times those who require home modifications have problems with areas such as the stairs, kitchen, bathroom, driveway and basement.

There are so many simple solutions to allow individuals to remain in their homes while still being allowed to perform daily activities with minimal to no trouble.  Here are some useful home modifications:

• Place lighted switch plates on the top and bottom of staircases and close to room entrances
• Install motion-censored exterior lighting
• Take away loose rugs or secure them with non-skid backing or double-sided carpet tape
• Install handrails and grab bars in stairways and bathrooms
• Place an adjustable rail on the edge of the bathtub
• Replace round doorknobs with levers
• Install a raised toilet seat & place a shower chair in the shower or tub
• Purchase clocks and telephones with larger numbers

Seniors spend millions of dollars a year making home modifications to accommodate their changing needs.  The AARP has devised a comprehensive list of resources on financing and contractors to assist with these changes.  Visit www.aarp.org for more information.

There are several different ways to describe the value of a home.  Each is correct in its own respect; however each description has a unique meaning.

MARKET VALUE is the amount a prospective buyer is willing to pay for a home.  While it’s important when selling a home, market value has little to do with the cost of rebuilding your home.  If your house is destroyed by a fire, what matters is how much it’s going to cost to put you back into the home, exactly as it was prior to the catastrophe. 

REBUILDING COSTS include current costs using the same materials, current construction standards, recreating the design & layout, using the same quality and workmanship. 

What can you do to make sure you have enough coverage?  Provide in-depth details about your home to your agent so an appropriate replacement cost estimate can be made.  Greater detail + accuracy = better protection for YOU. If you’ve made changes to your home since yoru last policy review, contact your agent to discuss coverage amounts & verify the insurable value of your home.