Nursery Value Select

Nursery Value Select (NVS)

 NVS allows you to select the dollar amount of coverage that best fits your risk management needs. Coverage is available for container and/or field grown plants.  The plant must have the root system attached, or it is not eligible for insurance (non-insurable practice).

NVS is a multi-peril dollar plan of insurance, with coverage levels available from 50% - 75%, in 5% increments.  The coverage level acts like a deductible, just as a deductible works with your home or auto insurance.  If you choose the 75% coverage level, that means you have a 25% deductible.

Insurance Period and Important Dates to Remember:

The insurance period is 12 months.  For Alabama, this runs from June 1st through May 31st.  Insurance should be in place by the May 1st Sales Closing Date.  You can buy insurance after the sales closing date, but there is a 30-day waiting period before coverage attaches.

Important Dates for NVS

Enrollment Process

The enrollment process is fairly simple.  It requires you to report monthly inventory values, and then select a value for the entire year, not to exceed your highest reported monthly inventory value.  You will need to submit the following:

1.     Crop Insurance Application

2.     Nursery Value Report

3.     Monthly Unit Value Plan

4.     Copies of your most recent catalog

The USDA pays a subsidy that goes towards your premium, currently as follows (as with everything crop insurance related- subject to change):

What to do if you have a claim:

The Loss Adjustment process is fairly simple.   It relies on your actual sales receipts and on your collaboration with the loss adjuster to determine if a damaged plant can be marketed or rehabilitated.  Your loss is determined using your own inventory list. 

The adjuster will help you determine what the claim amount will be, but the following is an explanation of how the adjuster will do this:

1.     Pre-loss actual unit value – total value of all insurable plants immediately prior to the loss occurrence.

2.     Post-loss damage value – total dollar value lost immediately after the loss occurrence.

3.     Percent of loss is determined – which is the post-loss damage value divided by the pre-loss actual unit value

4.     Occurrence deductible is determined – which is the amount you must incur for the specific loss event before an indemnity is payable.

Example:

1.     Pre-loss actual unit value        = $100,000

2.     Post-loss damage value          = $75,000        (amt of plant inventory destroyed)

3.     Percent of loss                         = $75,000/$100,000 = 75%

4.     Occurrence deductible           = $25,000        (assuming a 75% coverage level was chosen)

Indemnity paid           = $75,000 destroyed plant inventory - $25,000 deductible

= $50,000 Indemnity paid to you

*Note that the total indemnities for the crop year cannot exceed your amount of insurance. 

Eligibility for this insurance plan:

To be eligible for NVS coverage, you must derive at least 40% of your gross income from the wholesale marketing of plants.  Gross income is determined by dividing the dollar value of wholesale plant sales, by the total dollar value of all plant sales, both retail and wholesale.

*Any income from sales of landscaping, chemical or other nursery related products, or from any business unrelated to nursery is not included in this calculation of gross income.

Example:  How to determine whether you would be considered a wholesale operation

            A nursery’s retail plant sales are $150,000

            And wholesale plant sales are $300,000

            Nursery related products sales are $75,000

You would be considered a wholesale operation because two thirds of your plant sales are from the wholesale marketing of plants

66.7% =                       $300,000         =                     Wholesale Plant Sales                        

                        $300,000 + $150,000              Wholesale Plant Sales + Retain Plant Sales

Other Notes:

·      Additional Options and Endorsements that can be purchased along with the main NVS policy:

1.     Occurrence Loss Option (OLO) – eliminates the unit deductible, effectively resulting in a higher coverage level.  When the % of loss is equal to or greater than 10%, you may be eligible for an indemnity.

2.     There is also a Hurricane Insurance Protection – Wind Index (Hip-WI) endorsement for crop insurance policies that provides coverage for a portion of the deductible, up to 95% of the expected crop value, however I would not recommend this addition for North Alabama operations.  If you would like further information on this add-on, I will be happy to provide it.

·      Inspections can be performed at any time.  Make sure price list, inventory, etc. are correct.  Make sure there is nothing that would prevent coverage.

·      Written agreements cannot be done on nursery policies.

·      Basic units are the only structure available and may be further divided by plant category within the practice, or, for field grown practice only, divided by noncontiguous land. Land should be contiguous.  If not, must do a separate basic unit for each tract of land.

I would love to get you a quote if you are interested in this plan, so please reach out with any questions you may have.

Updated 5/26/2025

This information is not all inclusive and is meant to be used for general guidelines for educational purposes only.   You the reader assume full responsibility for how you choose to use it.  For additional information, please see crop provisions, reference the crop insurance handbook or loss adjustment manual, or contact your crop insurance agent.  This institution is an equal opportunity provider and employer.