The Fire Insurance Protection - Smoke Index (FIP-SI) Endorsement provides coverage for a portion of the deductible for your Grape Crop Provisions that is not otherwise covered when the insured county experiences a minimum number of Smoke Events as determined by the Federal Crop Insurance Corporation (FCIC) in accordance with the Smoke Index Data Provisions (SIDP) and identified in the actuarial documents.
A Smoke Event is the occurrence of heavy smoke density in a county during a 24-hour interval. Heavy smoke density will be determined using Hazard Mapping System (HMS) data from the National Oceanic and Atmospheric Administration (NOAA). County boundaries will be determined by the U.S. Census Bureau. The SIDP details procedures in the event of gaps in HMS smoke data.
The coverage provided by FIP-SI may be purchased in conjunction with the Supplemental Coverage Option (SCO) Endorsement and Catastrophic Risk Protection Endorsement (CAT Coverage). FIP-SI may not be purchased in conjunction with any other endorsements to the Grape Crop Provisions.
The FIP-SI Endorsement is only available for grapes grown in California, insured under the Grape Crop Provisions, and in counties listed in the Grape Crop Provisions actuarial documents.
To be eligible for the FIP-SI Endorsement, you must:
- Have a Grape Crop Provisions policy under the Basic Provisions with the same Approved Insurance Provider;
- Elect the FIP-SI Endorsement on or before the Grape Crop Provisions sales closing date (SCD);
- Elect a FIP-SI Smoke Coverage Percentage; and
- Comply with all terms and conditions of the FIP-SI Endorsement.
On or before the Grape Crop Provisions SCD specified in the Special Provisions.
The insurance period for FIP-SI begins on June 1 and ends on November 10.
FIP-SI provides protection against widespread loss in a county that meets the County Loss Trigger upon the required number of Smoke Events as determined by FCIC. Triggered counties will be determined after the end of the Insurance Period. An indemnity is paid if a county experiences the minimum number of Smoke Events as determined by the FCIC in accordance with the SIDP. The total indemnity payment amount is determined by the cumulative number of Smoke Events. Please refer to the FIP-SI policy document to see how the total indemnity payment amount is calculated.
You are not required to file a notice of loss. The counties where payments occur will be identified in the actuarial documents. It is possible that your individual farm may experience reduced revenue or reduced yield due to smoke-related causes and you do not receive an indemnity under FIP-SI.
An administrative fee and premium for the crop covered by each FIP-SI Endorsement will be due in addition to any administrative fee(s) and/or premium(s) of the underlying policy. The FIP-SI Endorsement attaches only to the underlying policy and not to an endorsement. Under the Grape Crop Provisions, you may elect which grape varieties in the county to insure. Each variety is considered to be a separate crop policy. Therefore, you may elect FIP-SI coverage by each grape variety you insure, with each variety being a separate crop policy. Accordingly, an administrative fee is charged for each grape policy to which FIP-SI coverage is attached.
The FIP-SI administrative fee may be waived if you qualify as a limited resource farmer, a Beginning Farmer Rancher, or a Veteran Farmer Rancher.
Premium for the FIP-SI Endorsement is calculated by multiplying the Smoke Protection Amount by the premium rate and any premium adjustment percentages that may apply. The premium rate is contained in the actuarial documents. The premium subsidy for the FIP-SI Endorsement is fixed at 65 percent.
FIP-SI covers a portion of the deductible beginning at the coverage level elected on the underlying Grape Crop Provisions or, if elected, the SCO layer of insurance. Maximum coverage allowed under all circumstances will not exceed 95 percent of the expected crop value. FIP-SI is not available with Enhanced Coverage Option (ECO).
An indemnity is due when FCIC determines the insured’s county meets or exceeds the County Loss Trigger, meaning that county has met the required number of Smoke Events as determined by FCIC. Only one indemnity payment per insurance period is allowed. The Risk Management Agency (RMA) will identify triggered counties in the actuarial documents.
Losses under FIP-SI will be paid following the Insurance Period, and within 30 days after the later of:
- The date FCIC releases the list of counties identified as meeting the County Loss Trigger; or
- The conditions in the Basic Provisions sections 14(f)(2)-(4) are met.
Yes. FIP-SI premiums and administrative fees due will be offset by your FIP-SI indemnity payments.
No. You are not required to submit an acreage report for the FIP-SI Endorsement because the Endorsement uses the Grape Crop Provisions’ acreage report.
Yes. FIP-SI does not differentiate between smoke from wildfires and controlled burns.
Yes. FIP-SI does not differentiate winegrapes being on or off the vines.
Yes. You can receive two separate indemnity payments if you qualify.