Grapevines are insurable in specific counties in California, Idaho, Michigan, New York, Ohio, Oregon, Pennsylvania, Texas, and Washington. For grapevines to be insured, at a minimum they must be:
Coverage will be offered on grafted vines only and no partial damage losses will be considered. Only vines that were completely destroyed or vines deemed not to recover within a 12-month period will be covered. A minimum number of vines per acre is required for insurability and is specified in the Special Provisions of your insurance policy.
| Sales Closing | November 1 |
| Acreage Report Due | November 1 |
| Cancellation | November 1 |
Your amount of protection is based on the vine reference price applicable to each different stage of your insurable vines.
Vines are grouped into stages to establish the Vine Reference Price (VRP) used to determine your insurance coverage. There are three different stages based on the number of months since the vine was set out at the time insurance attaches. If at least 75 percent of the vines in a block fall within the same stage, the entire block may be considered the same stage.
The dollar amount of protection for the unit is based on the number of insurable vines in each stage-block multiplied by the applicable vine reference price and price percentage you elect for the type. These results are totaled for each stage and multiplied by the coverage level you elect for the type.
You will select one coverage level, ranging from 50 to 75 percent and one percentage of price election up to 100 percent of the vine reference price for each type insured in the county. Higher coverage levels are subsidized at lower rates and the premium subsidy is at least 55 percent of the premium. Premium and administrative fees are due annually.
There are two forms of optional coverage available in conjunction with your grapevine policy. Both require you to elect a coverage level above the Catastrophic Risk Protection Endorsement (CAT) level (50 percent coverage level at 55 percent of the price election).
For an additional premium, you can elect the Occurrence Loss Option (OLO). The OLO doesn’t change your amount of protection; however, it allows indemnities to be paid on smaller losses that are at least five percent.
For a premium discount, you may elect the Freeze Protection Option. This option is available if you have freeze protection practices in place that are recognized by industry experts.
Assume you have chosen a 75 percent coverage level. You have not elected the OLO. You have 100 percent share in 3,000 stage 3 grapevines in the unit. The VRP for stage 3 grapevines is $30 and you elect 100 percent of the VRP. The unit deductible is $22,500 (3,000 stage 3 vines x $30 x .25). Due to an insured cause of loss, 1,000 vines are destroyed.
The damage value is $30,000 (1,000 vines x 100% damage x $30 per vine). The indemnity for the unit is calculated as follows:
| $ 30,000 | Damage Value |
| $ 22,500 | Unit Deductible |
| $ 7,500 | Amount of Loss |
| x 100% | Share |
| $ 7,500 | Indemnity |
