What is required in order to purchase crop-hail insurance?

To purchase crop-hail insurance, having an insurable interest in the growing crop is essential. Insurable interest means that the policyholder stands to lose financially if the crop is destroyed or damaged, which is a fundamental principle in insurance. This requirement ensures that the person purchasing the insurance is directly affected by the financial loss associated with the crop’s potential damage.

Additionally, insurable interest serves to prevent moral hazards, where someone might seek to gain financially from an impending loss without the actual risk of financial detriment. Other options, such as a successful crop history, approval from a local government, or a financial stability assessment, while potentially beneficial or relevant in some contexts, are not universally required prerequisites for obtaining crop-hail insurance. These aspects may influence policy terms or premiums but do not negate the essential requirement of having an insurable interest in the crops being insured.