Multi Peril Crop Insurance
Is just that…an insurance policy that protects you against loss to your crops for multiple causes such as; adverse weather, fire, insects, plant disease, wildlife (other factors will apply to these causes of loss). Your coverage “guarantee” is based on a chosen level, usually between 50% and 75%, of your prior production history and a predetermined price for the insurance year. Revenue products are also available on some crops. This policy is subsidized by the Federal Government and usually referred to as MPCI.
Named Peril Insurance
Normally sold to work in conjunction with and supplement the Multi Peril Crop Insurance policy on some crops. As the name implies, the peril covered against is named in the policy and usually crop specific, such as Freeze Insurance on citrus. This is a good policy to add to your MPCI policy in order to additionally protect the farming operation against financial loss.