Reforestation Insurance Program

Purpose

This policy protects an insured against the unexpected loss of cash reserves by providing owners with cash flow payments to get back in the business of growing timber after a catastrophic fire or wind loss. 

Applicability

This policy applies to:

  • Investors
  • Publicly traded companies
  • Trusts
  • Family forest owners
  • Consulting foresters managing clients property
  • Mitigation bankers
  • Financial institutions

Premerchantable timber stands are the desired age class for this coverage since those stands offer no salvage value should they be damaged by fire or wind. 

General Description

This insurance is not intended to insure the value of the trees, but the cost of replanting following a catastrophic fire or wind disaster. 

Woodland owners accept the time to grow timber to maturity.  A possible delay in recovering returns because of a fire or wind disaster is tolerated.  However, encountering out of pocket expenses to replant a premerchantible stand can be unbearable. 

Woodland owners will be able to renew this coverage annually.  The coverage can be carried for as many years as the owner wishes to insure premerchantable stands.

 

Pricing Information

This coverage is priced on an individual application basis.  Premium charged is dependent on past losses, location, total acres, and level of coverage.  Coverage can be tailored to meet the insured’s specific interest or need.

In general terms, the coverage is priced as follows:


Insured Amount
($/acre)

Premium Rate
($/acre)

Special Conditions

$125.00

$1.20

$250 Minimum Premium

$250.00

$1.50

$250 Minimum Premium

 

 

 

1 – 2500 acres – Deductible is 5% of loss or $500

2501 – 15,000 acres – Deductible is 10% loss or $1,000

Premium rates are subject to underwriting approval and can vary depending on individual insured’s specifications.

Trigger to pay a claim after a qualified fire or wind loss is less than 40% survival.  For example, the insured stand has 500 trees per acre.  Less than 200 live trees per acre after a loss would trigger payment. 

* No wind coverage in Florida.

Specific Claims Procedure Steps

In the event of a claim the following procedures would apply.

  • The first priority is to make sure the claim is handled appropriately and fair.
  • Start gathering the facts and report the claim immediately.  Necessary data includes
    • Date/Time of loss
    • Description of loss
    • Description of property damaged
    • Include supportive materials – fire reports, weather data
    • Contact information

            Submit the loss report within 24 hours of the incident.

  • Please preserve damaged property.  Take photographs of the damage.

Application - Flier

Report loss to Davis-Garvin Agency, Inc. by fax at 803-781-6712 or phone at 803-732-0060.

Davis-Garvin Agency, Inc. · Toll Free: 1-800-845-3163 · Fax:1-803-781-6712 ·
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