(1 of 4)

20-HIP-WI

(Released 2-2020) UNITED STATES DEPARTMENT OF AGRICULTURE

FEDERAL CROP INSURANCE CORPORATION

HURRICANE INSURANCE PROTECTION WIND - 

INDEX ENDORSEMENT

In return for your payment of premium and administrative fee for the coverage, this Endorsement will be attached to and made part of the 

Common Crop Insurance Policy, Basic Provisions (Basic Provisions) and Crop Provisions for the insured crop, subject to the terms and 

conditions described herein. The Hurricane Insurance Protection-Wind Index (HIP-WI) Endorsement provides coverage for a portion of 

the deductible of your underlying insurance policy that is not otherwise covered, when the insured county, or a county adjacent to it, is

within the area of sustained hurricane force winds from a named hurricane according to the National Oceanic and Atmospheric 

Administration (NOAA). This Endorsement does not provide payments for prevented planting or replanting. Nor is it available with the 

Occurrence Loss Option (OLO) or the Comprehensive Tree Value (CTV) Endorsement. Factors other than wind damage may be 

associated with a hurricane but will not trigger a loss. The coverage provided by this Endorsement may be combined with the 

Supplemental Coverage Option (SCO) Endorsement, and the Stacked Income Protection Plan (STAX) when acreage covered by STAX 

is also insured by a companion policy.

1. Definitions

County loss trigger – The occurrence of sustained hurricane

force winds, as determined by the Risk Management Agency

(RMA), in accordance with the Hurricane Data Provisions

(HDP) and identified on the actuarial documents.

Coverage percentage - A factor you elect, between 1 and

100 percent in whole percent increments, used to determine

the Hurricane Protection Amount.

Expected crop value - The value of the crop based upon the

underlying policy and determined by dividing the liability of the 

underlying policy by the coverage level, and further dividing by

the percent of the price or price election of the underlying

policy.

Hurricane coverage range - The amount of difference

between 95 percent and the higher of the coverage level of

your underlying policy, or the upper end of your SCO coverage

range (if SCO coverage applies), or your STAX coverage

range (if STAX coverage applies), if applicable, expressed as

a whole percentage.

Hurricane Data Provisions (HDP) – A document that

describes the methodology utilized by RMA, incorporating

NOAA hurricane data, that identifies a county subjected to

sustained hurricane force winds, and any county adjacent to

that county.

Hurricane Protection Amount (HPA) - The dollar amount of

insurance as determined by section 6 of this Endorsement.

Insurance Period

In lieu of section 11 of the Basic Provisions,

(a) the period:

(1) Beginning on the later of:

i The sales closing date; or 

ii The earliest planting date for the underlying 

policy; and

(2) Ending on the earliest of:

i The end of insurance date published in the 

actuarial documents for the underlying policy; or 

ii The termination date, if no end of insurance date 

is published in the actuarial documents, for the 

underlying policy. 

(b) In lieu of (a) in this definition, for those crops where the

underlying policy requires a waiting period, the period:

(1) Beginning on the date insurance attaches on the

underlying policy; and

(2) Ending on the date insurance ends on the underlying

policy.

National Oceanic and Atmospheric Administration 

(NOAA) - An agency within the United States Department of 

Commerce, or its successor.

Supplemental Coverage Option (SCO) - A county-level crop 

insurance option that provides additional coverage for a 

portion of a producer’s underlying policy deductible.

Stacked Income Protection Plan (STAX) - A crop insurance 

product for upland cotton that provides coverage for a portion 

of the expected revenue for a producer’s area. 

Underlying policy - The Common Crop Insurance Policy, 

Basic Provisions (Basic Provisions) published at 7 C.F.R. part

457 and Crop Provisions, to which this Endorsement is 

attached. A crop covered by any plan of insurance not under

the Common Crop Insurance Policy Basic Provisions will not 

qualify as an underlying policy for this Endorsement.

2. Conditions of Insurance

(a) You must have an underlying policy in force with us to

elect coverage under this Endorsement.

(b) This Endorsement is applicable only in those counties

where coverage is offered in the actuarial documents.

(c) This Endorsement is not available with STAX when the

acreage insured under STAX is not also insured under a

companion policy.

(d) To be eligible to receive an indemnity payment, the

county loss trigger must occur within the insurance

period, as defined in this Endorsement. Only one

indemnity payment per insurance period is allowed

regardless of the number of times a county loss trigger

occurs during the insurance period.

(e) For the initial year you elect this Endorsement, coverage

will not begin until the later of 14 days after the sales

closing date or the end of the waiting period for the

underlying policy when the underlying policy also

requires a similar waiting period.

(f) For subsequent years, you may increase your HIP-WI

coverage (e.g., lowering coverage on underlying policy,

increasing HIP-WI coverage factor, decreasing STAX

coverage level) by the sales closing date, but it will not

take effect until the later of 14 days after the sales closing 

date or the end of the waiting period for the underlying

policy when the underlying policy also requires a similar

waiting period. If a loss is triggered for your county within

the waiting period, coverage will be based on the

coverage percentage and coverage range from the

previous insured year.
(2 of 4)

3. Life of Endorsement

(a) This is a continuous Endorsement, in accordance with 

section 2 of the Basic Provisions.

(b) If at any time your underlying policy for the crop is 

cancelled, voided, or terminated, coverage under this 

Endorsement is automatically cancelled, voided, or 

terminated as of the same date.

(c) If you change the coverage level or plan of insurance on

the underlying policy, or add, change, or remove any

SCO or STAX coverage associated with your underlying 

policy, this Endorsement will remain in effect and will 

provide coverage based on the revised underlying 

coverage level including any SCO or STAX coverage, 

as appropriate, if the change is made before the SCD

for the plan of insurance you selected, unless you 

cancel this Endorsement on or before the cancellation

date or you change your underlying policy to a plan of 

insurance not covered by the Common Crop Insurance 

Policy Basic Provisions. If SCO or STAX coverage 

changes after SCD due to election of ARC, then 

coverage is not increased for HIP-WI.

4. Report of Acreage

You are not required to file a separate report of acreage when 

you elect this Endorsement. The number of eligible acres of 

the insured crop under this Endorsement will be:

(a) For the initial year the Endorsement is accepted:

(1) If a loss is triggered for your county before the 

acreage reporting date for the underlying policy plus 

14 days, thelesser of:

i. The number of acres specified on your intended 

acreage report submitted to us by the sales 

closing date of the underlying policy or the 

number of acres submitted within 10 days of 

the date you acquire such acreage; or 

ii. The actual acres planted and reported on the 

current crop year acreage report for the 

underlying policy; or

(2) If a loss is not triggered for your county before the 

acreage reporting date for the underlying policy plus 

14 days, the number of acres specified on your 

current crop year acreage report filed and accepted 

by us forthe underlying policy.

(b) For any subsequent crop year:

(1) If a loss is triggered for your county before the 

acreage reporting date for the underlying policy plus 

14 days, the number of eligible acres will be the 

actual acres planted but limited to the lesser of:

i. The number of acres reported on the 

acreage report of the underlying policy you 

filed for the current crop year; or 

ii. The highest number of planted acres in any 

one of the immediate past four crop years.

(2) If a loss is not triggered for your county before the

acreage reporting date for the underlying policy plus 14

days, the number of acres specified on your current 

crop year acreage report filed and accepted by us for

the underlying policy.

(3) When an intended acreage report is filed, eligible 

acres will be limited to the actual acres planted and 

reported on the current crop year acreage report. If a 

loss is triggered for your county prior to you filing a 

current crop year acreage report for the underlying 

policy, and an intended acreage report has not been 

filed, eligible crop acres will be limited to the lesser of 

the current crop year planted acreage for the 

underlying policy or the prior year’s planted acreage.

(c) If an acreage report is not required for the underlying 

policy, use the crop’s equivalent of an acreage report.

5. Insurable Acreage and Unit Division

(a) All planted acreage of the crop (including perennial or 

nursery crops and insurable trees) in the county that is 

insured by the underlying policy must be insured under 

this Endorsement. This Endorsement will not insure

acreage with a prevented planting guarantee.

(b) In lieu of the provisions regarding units and unit division in

the underlying policy, protection provided by this

Endorsement will be based on all planted acreage

(including perennial or nursery crops and insurable trees) 

of the crop in the county insured by the underlying policy 

with the same coverage level, type, and practice, 

regardless of whether such acreage is owned, rented for 

cash, or rented for a share of the crop, including acres on 

which you are insuring another person’s share of the crop.

6. Hurricane Protection Amount

(a) If there are multiple coverage levels, types, or practices 

for the insured crop in the county, your HPA will be 

determined separately for each coverage level, type, and

practice.

(b) To calculate your HPA for all insured acres of the crop in 

the county with the same coverage level, type, practice, 

SCO and/or STAX coverage insured by this

Endorsement:

(1) Determine your hurricane coverage range;

(2) Divide the underlying policy liability for those acres 

with the same coverage level, type, and practice by 

the underlying policy coverage level, as applicable,

and then again by the percentage of price election or 

percentage of projected price, as applicable, of the 

underlying policy to determine the expected crop 

value;

i. When SCO or STAX coverage is in effect with 

the underlying policy, use only the liability and 

coverage level for the underlying policy, not the 

SCO or STAX liability or coverage level;

(3) Multiply your expected crop value by your hurricane 

coverage range; and

(4) Multiply the result of (3) by the coverage percentage 

elected by you. This is your HPA.

(c) If you have elected SCO with your underlying policy, your 

HPA will not increase if you elect the Agriculture Risk 

Coverage (ARC) program on any of the acres insured 

under SCO or STAX.

(d) For underlying policies with the amount of insurance not 

based on insured acres, to calculate your HPA for all

insured acres of the crop in the county with the same 

coverage level, type, and practice, insured by this

Endorsement:

(1) Determine your hurricane coverage range;

(2) Divide the underlying policy liability by the underlying 

policy coverage level, as applicable, and then again 

by the percentage of price election or percentage of 

projected price, as applicable, of the underlying 

policy to determine the expected crop value.

(3) Multiply your expected crop value by your hurricane 

coverage range; and

(4) Multiply the result of (3) by the coverage percentage 

elected by you. 
(3 of 4)

7. Annual Premium and Administrative Fee

(a) You will owe a separate annual premium and 

administrative fee for this Endorsement, in addition to 

any amount owed for the underlying policy.

(b) Premium for this Endorsement is calculated by 

multiplying your HPA determined from section 6 by the 

premium rate and any premium adjustmentpercentages 

that may apply. All information needed to calculate the 

premium rate is contained in the actuarial documents.

(c) The administrative fee for this Endorsement is 

determined in accordance with the provisions in section 

7(e) of the Basic Provisions.

8. Causes of Loss

(a) This Endorsement provides protection against 

widespread loss in the county, or adjacent county, due 

to sustained hurricane force winds. The county loss

trigger will be determined from HDP and shown in the 

actuarial documents as determined by the Federal Crop 

Insurance Corporation (FCIC).

(b) Individual farm yields and revenues are not considered 

underthis Endorsement. It is possible that your individual 

farm may experience reduced revenue or reduced yield 

and you do not receive an indemnity under this 

Endorsement.

(c) The notice provisions in section 14(b) of the Basic 

Provisions do not apply to this Endorsement.

9. Settlement of Claim

(a) An indemnity is due when the county loss trigger is 

identified for the insured county in the insurance period. 

Indemnities are calculated following the release by 

FCIC of any county that meets the county loss trigger.

(b) The indemnity is equal to the HPA determined in section 

6.

(c) In lieu of the provisions in section 14(f)(1) of the Basic 

Provisions, we will pay your loss under this Endorsement 

within 30 days after the later of the date FCIC releases 

the list of counties identified as meeting the county loss

trigger or 14(f)(2)-(4).

(d) Hurricane wind extent data may be updated by NOAA. 

Prior to the start of the hurricane season following the 

insured year, FCIC may add counties that were not 

included in the initial county release by FCIC of the 

counties that met the county loss trigger following

release of updated NOAA wind extent data for the 

applicable crop year. Once counties are listed by FCIC, 

they will not be removed even if later data indicates they 

did not meet the county loss trigger. 

10. [Reserved]

11. Written Agreements

(a) This Endorsement is available only when authorized by 

the actuarial documents for the crop, type, and practice 

in the county and cannot be made available through a 

Written Agreement.

(b) This Endorsement is applicable when available on the 

actuarial documents when a Written Agreement applies 

to the underlying policy.

12. Examples

The following are examples of the calculation of the HPA and 

HIP-WI indemnity for the plans of insurance that may be

selected for the underlying policy. Your information will likely 

be different, and you should consult the actuarial documents 

in your county and the policy information. The following 

examples are for illustration purposes only.

Producer A farms 100 acres of corn in county X and has an 

approved yield of 154.6 bushels per acre, with a 100 percent 

share. The projected price is $4.00, as published in the 

actuarial documents for county X. The producer elects a HIPWI coverage percentage of 0.90. (This information, with some 

changing variables, applies to the following examples.)

Example for underlying policy with CAT coverage and HIP-WI

election:

Resulting liability for the underlying policy is $17,006

Hurricane Protection Amount calculation: 

Step 1: Calculate hurricane coverage 

range.

Formula: 95 percent minus the maximum coverage level 

from the underlying policy

0.95 – 0.50 = 0.45 hurricane coverage range

Step 2: Calculate the expected crop value of the 

underlying policy.

Formula: Divide the liability of the underlying policy by the 

coverage level of the underlying policy, and then by the 

percentage of price election or percentage of projected 

price, as applicable to determine the expected crop value

$17,006 ÷ 0. 50 ÷ 0. 55 = $61,840 expected crop value. 

Step 3: Calculate HPA.

Multiply the expected crop value by the hurricane

coverage range and the coverage percentage you 

elected under this Endorsement.

$61,840 x 0.45 x 0.90 = $25,045 HPA.

If FCIC determines the county meets the county loss 

trigger, the indemnity payment would be $25,045.

Example for underlying policy with 70 percent coverage, 100

percent of price, and HIP-WI election: 

Resulting liability for the underlying policy is $43,288.

Hurricane Protection Amount calculation: 

Step 1: Calculate hurricane coverage 

range.

Formula: 95 percent minus the maximum coverage level 

from the underlying policy.

0.95 – 0.70 = 0.25 hurricane coverage range

Step 2: Calculate the expected crop value of the 

underlying policy.

Formula: Divide the liability of the underlying policy by the 

coverage level of the underlying policy, and then by the 

percentage of price election or percentage of projected 

price, as applicable of the underlying policy to determine 

the expected crop value.

$43,288 ÷ 0.70 ÷ 1 = $61,840 expected crop value. 

Step 3: Calculate the HPA.

Formula: Multiply the expected crop value of the 

underlying policy by the hurricane coverage range and the 

coverage percentage you elected under this 

Endorsement.

$61,840 x 0.25 x 0.90 = $13,914 HPA.

If FCIC determines the county meets the county loss 

trigger, the indemnity payment would be $13,914.

Example for SCO election:

Hurricane Protection amount calculation: 

Step 1: Calculate hurricane coverage 

range.

Formula: 95 percent minus the higher of the coverage 

level from the underlying policy (70 percent) or the upper 

end of the SCO coverage range (86 percent).

0.95 – 0.86 = 0.09 hurricane coverage range
(4 of 4)

Step 2: Calculate the expected crop value of the 

underlying policy.

Formula: Divide the liability of the underlying policy by 

the coverage level of the underlying policy, and then by 

the percentage of price election or percentage of 

projected price, as applicable of the underlying policy to 

determine the expected crop value.

$43,288 ÷ 0.70 ÷ 1.00 = $61,840 expected crop value of 

the underlying policy.

Step 3: Calculate the HPA.

Formula: Multiply expected crop value of the underlying 

policy by the hurricane coverage range and the 

coverage percentage you elected under this 

Endorsement.

$61,840 x 0.09 x .90 = $5,009 HPA.

If FCIC determines the county meets the county loss 

trigger, the indemnity payment would be $5,009.

Example for STAX election:

The STAX coverage band ranges from 75 percent to 90

percent.

Hurricane Protection amount 

calculation: Step 1: Calculate hurricane

coverage range.

Formula: 95 percent minus the higher of the coverage 

level from the underlying policy (70 percent) or the 

upper end of the STAX coverage range (90 percent).

0.95 – 0.90 = 0.05 hurricane coverage range

Step 2: Calculate the expected crop value of the 

underlying policy.

Formula: Divide the liability of the underlying policy by 

the coverage level of the underlying policy, and then by 

the percent of price election or percentage of projected 

price, as applicable of the underlying policy to determine 

the expected crop value.

$43,288 ÷ 0.70 ÷ 1.00 = $61,840 expected crop value of 

the underlying policy with STAX.

Step 3: Calculate the HPA.

Formula: Multiply expected crop value of the underlying 

policy by the hurricane coverage range and the 

coverage percentage.

$61,840 x 0.05 x 0.90 = $2,783 HPA.

If FCIC determines the county meets the county loss 

trigger, the indemnity payment would be $2,783.