ANALYSIS OF POLICY FORM
DESCRIPTION OF COVERAGE
Insurance for farm properties is written by attaching the
Farm Property coverage form to a Common Conditions form and a Declarations Page.
The insurance applies only to those items of property in the form opposite which
an amount of insurance applies. In some cases, various coverages may be written
in combination and an automatic amount of insurance is written based on the
limit of liability for dwellings or household personal property limits.
A careful legal description of the location of the property
is inserted at the top of the Declarations Page. The following property may be
covered under this form:
Dwelling, owned by the insured, including structures attached
to the covered dwelling, except those attached only by a fence, utility line or
similar connection; materials at the described location intended for the use in
building, altering or repairing the dwelling or attached structures; and
building and outdoor equipment used principally for the service of the residence
premises, including equipment temporarily away from the premises (if not
otherwise covered separately under the policy).
A dwelling on premises away from the insured location may be
covered if described in the Declarations and if a Limit of Insurance is shown.
Dwelling coverage does not include land, including land on
which the dwelling is located; water; or trees, shrubs, plants or lawns (except
if permitted by an Extension of Coverage).
The selected Limit of Insurance must be at least 80% of the
building's replacement value for replacement cost coverage to apply.
COVERAGE B - OTHER PRIVATE STRUCTURES APPURTENANT TO DWELLING
Private garages (unattached), used solely as a private
garage, including outdoor radio and TV antennas and satellite dishes attached to
the garage. Coverage may be applied as an additional amount of insurance, up to
10% of the Limit of Insurance under Coverage A.
Other owned private structures (including unattached private
garages for which coverage is provided under the item above) if the 10%
additional amount of insurance is inadequate, and if they are appurtenant and
separated from the dwelling by clear space or attached only by a fence, utility
line or similar connection. The appurtenant structures coverage is an automatic
10% of the dwelling limit.
For other property covered under this section there is no
automatic extension of coverage and the limit of liability must be shown in the
Declarations and a premium charged.
Under Private Structures Coverage B, property not covered
includes land; water; structures (other than private garages) that are rented or
held for rent to non-tenants of the residence premises; and structures (other
than private garages) used principally for farming purposes.
SPECIAL LIMITS of INSURANCE under COVERAGES A and B.
Outdoor radio and TV antennas and satellite dishes attached
to dwellings (Coverage A) or similar property and towers (Coverage B) are
subject to a limit of $250 in any one occurrence. This limit is not an
additional amount of insurance and applies in excess of any applicable
deductible. If a higher limit is specified in the Declarations, the higher limit
COVERAGE C--HOUSEHOLD PERSONAL PROPERTY
Coverage includes household personal property owned by or
used by the insured and resident members of the family while such property is on
the insured location, and at the insured's request, similar property of others
while on a part of the resident premises occupied by an insured.
Coverage is worldwide, but only 10% may apply to secondary
residences. On combination coverage policies, the limit under this coverage is
50% of the dwelling limit.
Covered property does not include articles separately
described and specifically covered under this or any other insurance; aircraft
and parts; trees, shrubs, plants, and lawns owned as a tenant, except as
provided under an Extension of Coverage under Coverages A, B or C; animals,
birds or fish; business property, except as provided under Special Limits of
Insurance; magnetic recording or storage media for electronic data processing,
such as cell, disc, drum, film, and tape, for more than their replacement values
as prepackaged software programs or in unexposed blank form, whichever is the
greater value; any device or instrument for the transmitting, recording,
receiving, or reproducing of sound or pictures that is operated by power from
the electric system of motor vehicles or motorized land conveyances of any kind,
including while in or upon the vehicles: accessories, antennas, and tapes,
wires, records, discs, or other media for use with such device or instrument;
farm personal property other than office fixtures, furniture and equipment in
offices on the resident premises; or motor vehicles or motorized land
conveyances, their equipment or accessories.
Vehicles not licensed for road use are covered if used only
for servicing the insured residence, or if designed and used for assisting the
SPECIAL LIMITS OF INSURANCE - COVERAGE C
Certain kinds of household personal property are subject to
special Limits of Insurance. These limits are not additional amounts of
insurance and apply in excess of the deductible. The following are subject to
- $200 on gold other than goldware, money, platinum, and silver other than
- $1,000 on letters of credit, manuscripts, passports, and securities;
- $1,000 on watercraft, including their equipment, furnishings, outboard
motors, and trailers;
- $1,000 on trailers not used with watercraft nor for farming operations;
$1,000 on gravemarkers;
- $2,500 on property on the resident premises used for business purposes;
- $250 on an insured's property off the premises used for business purposes;
- In case of loss by theft: $1,000 on furs, jewelry, precious and
semi-precious stones, and watches; $2,500 on goldware, goldplated ware,
silverware, silverplated ware, and pewterware, including platedware, flatware,
hollowware, tea sets, trays, trophies, etc., as well as other utilitarian
articles made of or containing silver, gold or pewter; and $2,000 on firearms.
COVERAGE EXTENSIONS to COVERAGES A, B or C
TREES, SHRUBS, PLANTS, AND LAWNS--located within 250 feet
of the covered residence are covered for the following causes of loss: fire or
lightning, explosion, riot, civil commotion, aircraft, vehicles not owned or
operated by a resident, vandalism, or theft.
Coverage is available up to 5% of the Limit of Insurance in
the Declarations for the residence if the insured is the owner; or 10% of the
Limit of Insurance shown in the Declarations for household personal property, if
a tenant. The coverage is subject to a limit of $500 for any one damaged or
destroyed tree, shrub, plant, or lawn.
The extension does not apply to losses to trees, shrubs,
plants, or lawns grown for business or farming purposes. This extension applies
as additional insurance.
INSURED'S HOUSEHOLD PROPERTY (Coverage C) while away from
the insured location anywhere in the world, owned or used by the insured or
members of the household.
Insured's household personal property at any insured's
residence away from the insured location shown in the Declarations of the policy
is subject to a special Limit of Insurance equal to 10% of the limit for
household personal property, or $1,000, whichever is greater.
Household personal property at newly acquired residence
premises is not permanently subject to this special limit. For a period of 30
days following a move to a newly acquired resident premises, the property is
subject to the declared limit for household personal property. This limit
applies on a pro rata basis during the 30-day period to personal property at
both resident premises.
Household personal property of guests or residence employees
will be covered while in any residence occupied by an insured;
REFRIGERATED PRODUCTS (not farm personal property) are
covered for up to $500 for loss or damage to contents of a freezer or
refrigerated unit on the resident premises caused by a change in temperature due
to interruption of electrical service to refrigeration equipment, caused by
damage to generating or transmission equipment; or a mechanical or electrical
breakdown of a refrigeration system.
Property must owned by the insured and not be farm personal
property to be covered under the extension. No deductible applies.
Extension under Coverage C for tenants: BUILDING ADDITIONS
AND ALTERATIONS, includes additions, alterations, fixtures, improvements, or
installations to the part of the residence occupied by the tenant and made or
acquired at the tenant's expense. The Limit of Insurance is 10% of the limit
applicable to household personal property, unless a higher limit is specified in
the Declarations. The extension is additional insurance.
COVERAGE D--LOSS OF USE
ADDITIONAL LIVING EXPENSE is covered up to the Limit of
Insurance shown for Coverage D in the Declarations. This limit is 10% of the
limit on the owner's dwelling (Coverage A) or for tenants, 20% of Coverage C.
Coverage applies if a covered cause of loss renders the
insured's living quarters in the resident premises uninhabitable. The policy
pays for any necessary increase in living expense incurred so that the household
can maintain its normal standard of living.
FAIR RENTAL VALUE is covered if a loss renders
uninhabitable any portion of the resident premises that the owner rents or holds
for rent to others. Payment is for the fair rental value loss sustained. The
policy excludes any expenses that do not continue while the rental portion is
Additional living expenses or fair rental value loss
sustained if a civil authority prevents the insured from using the resident
premises because of direct damage to neighboring premises is covered, but only
for a period of two weeks, and not if expenses are incurred because of
cancellation of a lease or agreement.
COVERAGE E - SCHEDULED FARM PERSONAL PROPERTY
The following property is covered under this section provided
a limit is shown in the Declarations for each specific type of property:
- Grain, threshed seeds and beans, ground feed, silage, and manufactured and
blended livestock feed in buildings or structures, or in sacks, wagons or
- Grain in stacks, shocks, swaths, or piles in the open, but only for losses
by fire and lightning, vehicles and theft
- Hay, straw and fodder in buildings or structures, and hay, straw and
fodder in stacks, windows, or bales (only for the perils of fire or lightning,
windstorm or hail, vehicles or theft)
- Farm products, materials and supplies shown in the Declarations. These
include farm materials and related packing materials and containers usual to
the operations of a farm, but not hay, grain or any growing crops
- Poultry (excluding turkeys) while in the open, or in any building
designated in the Declarations for poultry
- Trays, boxes and box shook, each item or set in the proportion that its
value bears to the total value of all such items
- Computers and related software used principally as aids for farm
management. Software items are covered only up to the amount required to
replace as a prepackaged program, or in unexposed or blank form
- Miscellaneous equipment usual or incidental to the operation of a farm,
including machinery, vehicles, tools, and supplies
Miscellaneous farm equipment does not include (not covered
under this section):
- Threshing machines, tractors, combines, corn pickers, hay balers,
harvesters, peanut diggers, potato diggers and pickers, cotton pickers, crop
dryers, or sawmill equipment;
- Automobiles, trucks, motorcycles, motorized bicycles or tricycles, mopeds,
dirt bikes, snowmobiles, four-wheel all-terrain vehicles, mobile homes, house
trailers, or vehicles primarily designed and licensed for road use (other than
farm wagons and farm trailers);
- Watercraft or aircraft; or the equipment, parts or tires of any of the
- Liquefied petroleum or manufactured gas or fuel, or their containers;
- Bulk milk tanks, bulk feed tanks or bins attached to buildings or
structures; barn cleaners, pasteurizers or boilers; or any permanent fixtures
within or attached to buildings;
- Brooders or fences,
- Windchargers, windmills or their towers;
- Outdoor radio or television equipment or wiring; or private power and
- Irrigation equipment;
- Portable buildings and portable structures; household personal property or
property usual to a dwelling; or property more specifically covered under
another coverage or coverage form of this or any other policy; or,.
- Borrowed farm machinery, vehicles and equipment, meaning property usual or
incidental to farming operations, in the insured's care, custody or control,
and in which the insured has no interest as an owner or lienholder
Borrowed farm machinery does not include:
- Automobiles, trucks, motorcycles, motorized bicycles or tricycles, mopeds,
dirt bikes, snowmobiles, four-wheeled all terrain vehicles, mobile homes,
house trailers, vehicles primarily designed and licensed for road use (other
than farm wagons and farm trailers), watercraft or aircraft, or the equipment,
tires or parts of any of the above, or dealers' demonstration machinery,
vehicles or equipment.
Borrowed farm machinery is covered only to the extent that it
is not covered under any other coverage form or an other insured policy.
- Farm machinery, vehicles and equipment on or away from the insured
- Livestock on or away from premises. Livestock is excluded while in transit
by common or contract carrier; at public stockyards, sales barns or sales
yards; or at packing plants or slaughterhouses.
- Other animals
- Portable buildings and portable structures owned by the insured.
PROPERTY NOT COVERED UNDER COVERAGE E
Excluded property includes:
- Growing crops, trees, plants, shrubs, or lawns
- Household personal property or property usual to a dwelling
- Magnetic recording or storage media for electronic data processing, such
as cell, drum, film and tape, over and above their replacement value, as
prepackaged software programs or in unexposed or blank form
- Permanent fixtures within or attached to a building
- Outdoor radio or television equipment or wiring; private power and light
SPECIAL LIMITS UNDER COVERAGE E
The special limits are part of, and not in addition to the
applicable limits of liability shown in the Declarations.
- Hay, straw or fodder in the open is limited to $10,000 on any one stack,
unless a specific stack limit in the Declarations is shown for a higher
- For poultry, the Limit of Insurance per bird is its cash value at the time
of the loss.
- For any one item of miscellaneous equipment, the limit is $2,000.
The highest limit payable for loss or damage to any one head
of livestock (other than animals individually described and specifically
covered) is the lesser of the following: 120% of the amount obtained by dividing
the total insurance on the class and type of animal by the number of head of
that class and type owned by the insured at the time of the loss; the actual
cash value of the animal; or $2,000.
Each horse, mule or head of cattle under one year of age is
counted as 1/2 head.
COVERAGE EXTENSIONS UNDER COVERAGE E
- Up to 10% of the Limit of Insurance shown in the Declarations for grain,
hay in buildings or structures, and hay, straw and fodder in the open; and
- Up to 25% of the limit shown in the Declarations for miscellaneous
equipment, for all such properties while away from the insured location.
This extension does not apply to property stored or being
processed in manufacturing plants, public elevators, warehouses, seed houses or
commercial drying plants, in public sales barns or public sales yards, or in
transit by common or contract carrier.
The loss under this extension is pro rated with any other
policy covering the property involved.
- A limit of liability of $50,000, plus the corresponding limit specified in
the Declarations for individually scheduled items of farm machinery, vehicles
and equipment applies to an item purchased as a replacement for such
machinery, vehicle or equipment. This additional amount of $50,000 is
available for 30 days after the date of purchase or whenever the policy
expires, whichever occurs first.
- Newly purchased additional machinery, vehicles and equipment extends for
items such as tractors, combines, harvesters, corn pickers, and hay balers for
$50,000, which is a part of the limit of liability, not in addition to it.
(The extension applies for 30 days.)
Automobiles, trucks, motorcycles, motorized bikes or
tricycles, mopeds, dirt bikes, snowmobiles, four-wheel all terrain vehicles,
mobile homes or house trailers, vehicles designed and licensed for road use,
watercraft, aircraft, liquefied petroleum or manufactured gas or fuel, brooders,
fences, windchargers, windmills, or any farm equipment, machinery or vehicles
purchased as replacements are excluded under the extension.
Additionally acquired livestock is covered for 30 days
following acquisition, if livestock is specifically declared in the Declarations
with a separate limit shown per class.
COVERAGE F--UNSCHEDULED FARM PERSONAL PROPERTY
All items of farm personal property on the insured location
except for those items specifically excluded under Property Not Covered.
The following items are covered while away from the insured
- Grain, ground feed, fertilizer, fodder, hay, herbicides, manufactured and
blended livestock feed, pesticides, silage, straw, and threshed beans and
threshed seeds except while being stored or processed in commercial drying
plants, manufacturing plants, public elevators, seed houses, or warehouses.
- Livestock, except while in transit by common or contract carrier, at
public stockyards, sales barns or yards, or at packing plants or
- Farm machinery and equipment.
- Farm implements, tools and supplies.
PROPERTY NOT COVERED UNDER COVERAGE F
Property excluded under Coverage F includes:
- Household or personal property usual to a dwelling.
- Magnetic recording or storage media for electronic data processing, for
more than their replacement value as prepackaged software programs or in
unexposed blank form.
- Animals other than livestock.
- Poultry, bees, fish, or worms.
- Racehorses, show horses or show ponies.
- Grain, threshed seeds, threshed beans, hay, straw, fodder, silage, ground
feed, herbicides, fertilizer, manufactured or blended livestock feed, while
being stored or processed in manufacturing plants, public elevators,
warehouses, seed houses, or commercial drying plants.
- Trees, plants, shrubs, or lawns.
- Tobacco, cotton, vegetables, root crops, potatoes, bulbs, fruit, or
- Crops in the open, except as provided under the extension of coverage to
- Contents of chicken fryer or broiler houses, laying houses, poultry
brooder, or duck or turkey houses.
- Automobiles, trucks, motorcycles, motorized bicycles or tricycles, mopeds,
dirt bikes, snowmobiles, four-wheel all-terrain vehicles, mobile homes, house
trailers, vehicles primarily designed and licensed for road use, and
watercraft or aircraft, including parts, tires and equipment.
- Fences; windmills or windchargers or their towers.
- Bulk milk tanks, bulk feed tanks or bins attached to buildings or
structures, barn cleaners, pasteurizers or boilers, and any permanent fixtures
within or attached to a building.
- Outdoor radio or television equipment.
- Portable buildings or portable structures.
- Irrigation equipment.
- Property separately described and specifically covered in whole or part
under another coverage or coverage for this or any other policy.
- Cotton pickers and harvester-thresher combines.
- Or, any property shown in the Declarations under the heading "other
property not covered under Coverage F."
SPECIAL LIMITS OF LIABILITY UNDER COVERAGE F
Special limits under this section are a part of, not in
addition to, the applicable limit of liability shown in the Declarations.
- Up to $1,000 on any one horse, mule or head of cattle under one year of
- Up to $2,000 on any other head of livestock.
COVERAGE EXTENSION TO COVERAGE F
Up to 10% of the limit of liability shown for farm personal
property to cover the following property in the open:
- Grain in piles, shocks, stacks, or swaths.
- Hay, straw and fodder in stacks, windows or bales up to a limit of $10,000
for any one stack of hay, straw or fodder.
The only covered causes of loss applying to the above
property are fire, lightning, windstorm or hail, vehicles, and theft.
- Unharvested barley, corn, oats, rye, wheat, and other grains, flax, soy
beans and sunflowers, but not seed or forage crops, straw or stubble (for fire
or lightning only).
COVERAGE G--OTHER FARM STRUCTURES
The following property is covered under Coverage G provided a
Limit of Insurance is shown in the Declarations:
- Farm buildings and structures, including attached sheds and permanent
fixtures (does not include dwellings).
- Silos individually described in the Declarations or scheduled, whether
attached to buildings or not.
- Portable buildings and portable structures.
- Fences (except for field or pasture fences), corrals, pens, chutes, and
- Outdoor radio and television equipment, antennas, masts, and towers.
- Improvements and betterments, including additions, alterations, fixtures,
or installations made to the described building, but not including items that
may be legally removed by an insured. Use interest of the tenant in
improvements and betterments made at his expenses is covered.
- Building materials and supplies for use in building, altering or repairing
farm buildings and structures, and kept on or adjacent to the insured
PROPERTY NOT COVERED
Items excluded under Coverage G include:
- Field or pasture fences.
- Foundations of buildings or structures, if below the ground.
- Pilings, piers, wharves, or docks.
- Or, the cost of excavations, grading, filling, or back filling.
COVERAGE EXTENSIONS TO COVERAGE G
Coverage under this extension is not an additional amount of
- Up to $250 as an additional amount of insurance for loss or damage to
private power and light poles, outside wiring and attachments.
- Up to $50,000 for loss or damage to new permanent farm structures at the
insured location. Coverage includes materials and supplies used for
Coverage applies only to structures not covered elsewhere,
and only for loss caused by aircraft, explosion, fire, lightning, riot or civil
commotion, smoke, vandalism, vehicles, windstorm, or hail.
Insurance on each farm structure covered under the extension
ends when values are reported to the insurer, at the end of 60 days, or when the
COVERED CAUSES OF LOSS
Detailed coverage for causes of loss covered under this form
are explained in PF&M Special Analysis on Causes of Loss Forms in section
130.6-1. Included in this analysis is only material which is particularly
applicable to the Farm Property Form.
- Fire or lightning.
- Coverage is excluded for loss or damage to buildings or contents of a
tobacco barn, if loss results from the use of open fire for curing or drying
tobacco in the barn, and occurs during, or within the 5-day period following,
open-fire curing or drying.
- Windstorm or hail, excluding loss caused by frost or cold weather; ice,
snow or sleet, whether driven by the wind or not.
- Livestock or poultry is not covered under this peril when caused by
running into streams, ponds or ditches, or against fences or other objects;
smothering; or resulting from fright. Livestock or poultry is not covered when
loss is caused by freezing or smothering in blizzards or snowstorms; or loss
to dairy or farm products in the open (other than hay, straw or fodder).
- The policy excludes loss under Coverages E, F and G caused by explosion of
alcohol stills, steam boilers, steam pipes, steam engines, or steam turbines
owned, leased or operated by the insured and electric arcing, rupture or
bursting of pipes, pressure relief devices, or as the result of water swelling
or expanding the contents of any building or structure.
- Riot or civil commotion.
- Coverage includes acts of striking employees at the insured location, and
looting occurring at the time of the riot or civil commotion.
- Smoke, excluding smoke from agricultural smudging or industrial
- Loss is excluded if the dwelling has been vacant for more than 30 days.
- Theft, including attempt thereat.
The Farm Property Form includes the cause of loss of theft in
its Causes of Loss section which is not included in most Commercial Property
Forms (see PF&M section 130.6-1). The following are major features of this cause
Exclusions under this cause of loss are the following:
- Due to unauthorized instructions to transfer property to any person or
- Under Coverages A, B or G, in or from a building or structure under
construction, including materials and supplies used for construction, until
the building or structure is completed and occupied.
- Under Coverages A, B or C, from a part of the residence rented by the
insured to others.
- With respect to household property away from the resident premises, if at
any other residence owned by an insured and the insured is not temporarily
residing therein. The property of an insured student is covered at the
student's residence provided the student has occupied that location in the 45
days preceding the loss; watercraft, furnishings, equipment and outboard
motors; and trailers or campers.
- Under Coverages E and F, excluded is coverage discovered while taking
inventory; due to wrongful conversion or embezzlement; due to escape or
mysterious disappearance; due to acceptance of counterfeit money, fraudulent
post office or express money order, or checks or promissory notes.
- Electronic devices used for transmitting, recording, receiving, or
reproduction of sound or pictures that are operated by power from the
electrical system are excluded when on or intended for use with motor
vehicles, unless permanently installed.
- Tapes, wires, records, discs, or other medium used with electronic
instruments above are excluded while in or on a motor vehicle or mobile
- Sinkhole Collapse.
- Volcanic Action.
Applies to Coverages E and F:
- Damage to farm machinery caused by collision with another object or by
upset or overturn of the machinery.
- Coverage is excluded for tires or tubes unless coincidental with other
damage to the machinery or implement; caused by contact between a tractor and
implement during towing, hitching or unhitching; caused by foreign objects
taken into farm machine or mechanical harvester.
- Collision causing death of covered livestock is covered, except when the
livestock are being transported by common or contract carrier, or if the
vehicle which struck the animal was owned or operated by an insured.
- Damage in course of transit by common carrier (Coverages E and F) is paid
up to $1,000 in any one occurrence for loss or damage to farm personal
property (the $1,000 is not additional insurance).
- Earthquake loss to livestock.
- Flood loss to livestock.
The covered causes of loss under the basic form, plus the
- Electrocution of covered livestock.
- Attacks on covered livestock by dogs and wild animals, except loss or
damage to sheep, or caused by dogs or wild animals owned by the insured,
employees, or other persons residing on the premises.
- Accidental shooting of covered livestock, excluding damage caused by
insured, employees or other resident persons.
- Drowning of covered livestock from external causes, except drowning of
swine less than 30 days old.
- Loading/unloading accidents, meaning sudden, unforeseen and unintended
events, causing or necessitating death of covered livestock and occurring
while being unloaded or loaded on to transporting vehicles.
- The cause of loss does not include loss caused by or resulting from
- Breakage of glass.
- Falling objects.
- Weight of ice, snow or sleet.
- Sudden and accidental tearing apart, cracking, burning, or bulging of a
steam or hot water heating system, an air conditioning or automatic fire
protective system, or appliance for heating hot water, except loss caused by
or resulting from freezing.
- Accidental discharge or leakage of water or steam as a result of the above
cause of loss.
- The broad form of the policy will pay for personal property damaged by
leaking water or steam, and if parts of the building or structure have to be
torn out and replaced in order to make repairs to the damaged system or
- The policy excludes the cost to repair the defect that caused the leakage;
loss or damage caused by continuous or repeated seepage or leakage; loss or
damage caused by discharge or overflow occurring off the insured location; for
loss on a building vacant more than 30 days; and for loss or damage caused by
or resulting from freezing.
- Freezing of a plumbing, heating, air conditioning, or automatic fire
protective system or a household appliance.
- The policy excludes losses while vacant, unoccupied, or being constructed,
unless the insured uses reasonable care to maintain heat in the building or to
shut off the water supply and drain the appliance or system.
- Sudden and accidental damage from artificially generated electrical
current (Coverages A, B, C and D).
- Coverage is excluded for loss or damage to tubes, transistors or similar
Covered Causes of Loss means risks of direct physical damage,
unless the loss is excluded. The following are exclusions applicable to special
coverage in the Farm Property form:
- Fire, if loss or damage is sustained by buildings or contents usual to
tobacco barns, as a result of using open fire to cure or dry tobacco, and
occurs while tobacco is being fired or within a 5-day period thereafter.
- Collapse, except as provided in the additional coverage entitled Collapse.
- Windstorm or hail to dairy or farm products in the open, or watercraft or
their trailers, furnishings, equipment and motors, unless in fully enclosed
- Rain, snow, ice, or heat to personal property in the open.
- Rain, snow, sleet, sand, or dust, whether driven by wind or not, to the
interior of a building or structure or property within, unless the building
first sustains wind or hail damage to roof or walls.
- Freezing or thawing, or pressure or weight of water or ice to foundations,
retaining walls, pavements, patios, fences, swimming pools, or bulkheads,
docks, piers, or wharves.
- Discharge or overflow of water or steam from plumbing, heating, air
conditioning, or automatic fire protective systems or within a household
appliance, if in the form of continuous seepage over a long period; is caused
by discharge taking place off the insured location; caused by freezing in a
vacant or unoccupied building, unless heat is properly maintained or the water
supply is shut off; if in a building or structure vacant for more than 30
- Freezing of plumbing, heating, air conditioning, or automatic fire
protective system, unless heat is maintained or the water is shut off.
Following occurrences under Coverage G or if damaged or
destroyed property is farm personal property:
- Explosion of alcohol stills, steam boilers, steam pipes, or steam engines
leased or owned by the insured; conditions inside hot water heaters or other
heating equipment to the extent that they cause loss or damage to boilers or
equipment; rupture, bursting or operation of pressure relief valves; rupture
or bursting due to expansion of contents of a building or structure if caused
by or results from water.
- Theft from the part of a resident premises rented by an insured to others.
- Theft from a building or structure under construction, or of materials and
supplies used in the construction until the building or structure is completed
- Theft of the following property away from the resident premises: Property
at any other residence owned by or rented, or occupied by the insured except
when the insured is temporary residing there. Student's property is covered
when away from home provided that the student is not away from the residence
for more than 45 days before the loss; watercraft, etc.; trailers and campers.
- Inventory shortage.
- Absence of farm personal property or portable building or structure when
there is no evidence of unauthorized removal.
- Voluntary parting with property by the insured or any person entrusted
with the property if induced to do by a fraudulent scheme, trick, device, or
- Unauthorized instruction to transfer property to any person or place.
- Theft of or vandalism to a device or instrument for transmitting,
recording, receiving, or reproduction of sound or pictures, operated by power
of a motor vehicle or mobile agricultural vehicle, unless it is permanently
installed; or tapes, wires, records, discs, or other medium used with the
above equipment while in or on the vehicle.
- Vandalism, breakage of glass or safety glazing material if the building or
structure is vacant for more than 30 days.
- Dishonest or criminal acts committed by the insured or partners,
employees, directors, trustees, authorized representatives, or other entrusted
- Transportation of farm property, except coverage provided under the
limited extension of coverage under Coverage E; or up to $1,000 for farm
personal property damaged in transit by a common or contract carrier.
- The following causes of loss sustained by farm machinery: loss or damage
to tires or inner tubes if caused by collision, upset or overturn; contact
between a tractor and an implement during towing, hitching or unhitching;
foreign objects taken into any farm machine or mechanical harvester; and
contact of a vehicle with a roadbed or ground, causing loss to farm machinery.
- Artificially generated electrical current that disturbs electrical
devices, appliances and wires, and to tubes, transistors or other electronic
components (under Coverages A, B, C and D).
Under A, B, C, and D, coverage is available for loss to
electrical devices, appliances or wires if the damage is sudden and accidental,
or if loss by fire results.
- Smoke, vapor or gas from agricultural smudging or industrial operations to
buildings, structures or personal property.
- The following causes of loss to buildings, structures or personal
property: wear and tear; rust, corrosion, fungus, decay, deterioration, hidden
or latent defect, or any quality in property that causes it to damage or
destroy itself; smog; settling, cracking, shrinkage, or expansion; birds,
vermin, rodents, insects, or domestic animals; mechanical breakdown, including
rupture or bursting caused by centrifugal force; dampness or dryness of
atmosphere; changes or extremes in temperature; marring or scratching.
The Special Coverage section of the policy also excludes loss
or damage caused by:
- Weather conditions.
- The exclusion applies only if weather conditions contribute in any way
with a cause of loss excluded in this section to produce loss or damage.
- Acts or decisions, including failure to act or decide, of any person,
group, organization, or governmental body.
- Faulty, inadequate or defective planning, zoning, development, surveying,
siting; design, specifications, workmanship, repair, construction, renovation,
remodeling, grading, compaction; materials used in repair, construction,
renovation, or remodeling; or maintenance of a part or all of the property on
or off the insured location.
- Coverage is excluded for loss or damage caused by or resulting from the
release, discharge or dispersal of pollutants unless such release, etc., is
caused by a specified cause of loss.
- The policy does not pay for loss or damage to the following property under
the Special form: livestock, poultry, bees, fish, worms, other animals, hay,
straw or fodder, or trees, shrubs, plants, or lawns.
The following exclusions apply to all covered causes of loss,
under the basic, broad or general form:
- Enforcement of building ordinances or laws.
- Earth movement.
- Loss is covered, however, for resulting fire or explosion; and loss is
covered for loss to farm machinery, vehicles and equipment covered for the
special causes of loss, and for livestock.
- Volcanic eruption, except for resulting fire or volcanic action.
- Volcanic action is direct loss resulting from the eruption of a volcano
when loss is caused by airborne volcanic blast or airborne shock waves; ash,
dust or particulate matter; or lava flow.
- Governmental action, meaning the seizure or destruction of property by
order of governmental authority.
- Intentional loss, meaning acts committed by or at the direction of an
insured with the intent to cause a loss .
- Nuclear hazard.
- Power failure, if the failure occurs away from the insured location.
- War and military action.
- Water, including flood, surface water, waves, tides, tidal waves, overflow
of any body of water, or spray; mudslide or mud flow; water backing up from a
sewer or drain; water under the surface of the ground.
- Covered would be resulting loss by fire, explosion or sprinkler leakage;
or if to farm machinery, vehicles and equipment under special causes of loss;
or to livestock.
ADDITIONAL COVERAGES (applicable to all coverages)
- Debris removal. Reasonable repairs made to protect from further damage
after a loss has occurred. Damage to property removed for safekeeping.
- Fire department service charges.
ADDITIONAL COVERAGE (applicable to Coverages A, B, C, and D)
- Removal of fallen trees.
- Coverage applies to expenses incurred in removing a fallen tree from the
resident premises if the tree damaged covered property; and that if the tree
is not covered property but the cause of its falling was a covered cause of
loss; or if the tree is covered property and cause of loss is other than fire
or lightning, explosion, riot or civil commotion, aircraft, vehicles,
vandalism, or theft. Limit of liability is $500.
- The policy pays up to $500 for loss or damage arising from credit cards,
fund transfer cards, forgery, or fraudulent and counterfeit currency
ADDITIONAL COVERAGE (E and F)
The policy pays up to $2,000 to cover cost to research,
replace or restore the lost information on farm operations records damaged by a
covered cause of loss.
ADDITIONAL COVERAGE (E, F and G)
Policy pays up to the Limit of Insurance in the Declarations
for actual and necessary expenses incurred to resume normal farming operations
interrupted as a result of direct physical loss or damage by a covered cause of
(Applies when broad or special causes of loss are specified.)
Loss or damage caused by risks of direct physical loss involving collapse of a
building or part of it is covered if caused only by one or more of the
- The specified causes of loss or breakage of building glass; hidden decay;
hidden insect or vermin damage; weight of people or personal property; weight
of rain collecting on a roof; use of defective material or methods in
construction, remodeling or renovation if collapse occurs during the course of
construction, remodeling or renovation.
ADDITIONAL COVERAGE--Pollution Clean-up and Removal
Policy pays up to an aggregate limit of $10,000 for expenses
incurred to extract pollutants from land or water at the insured location, if
the release, etc., of pollutants is caused by a covered cause of loss.
LIMITS OF INSURANCE
The policy pays the applicable limit shown in the
Declarations; or the special limit applicable for certain categories of
The policy pays only for the amount of loss which exceeds the
deductible amount shown in the Declarations.
The standard property deductible is $250. Optional deductible
amounts are available and they can apply to each coverage or item separately.
Optional deductibles may be for $100, $500. $1,000, $2500,
$5,000, $7500, $10,000, and $25,000.
The Farm Property Policy is subject to the same conditions
applicable to losses and loss settlements as found in the Building and Personal
Property Coverage Form ( see PF&M Analysis 130.4-2). These are an adaptation and
expansion of lines in the Standard Fire Policy, which is no longer a separate
part of the form.
These conditions are abandonment, appraisal, duties in the
event of loss or damage, insurance under two or more coverages, legal action
against the insurer, and loss payment adjustments.
Other conditions apply to pairs, sets or parts, other
insurance, recovered property, transfer of rights of recovery against others to
the insurer (subrogation), and unoccupancy and vacancy (if vacant or unoccupied
more than 120 consecutive days, limits are reduced by 50%).
There are a number of definitions in the Farm Property form.
Some of the definitions are general in nature, but others relate specifically to
the farming business or farming property.
Those definitions relating to farming are:
- FARM PERSONAL PROPERTY means equipment, supplies and products of farming
or ranching operations, including but not limited to feed, seed, fertilizer,
livestock, other animals, poultry, grain, bees, fish, worms, produce and
agricultural machinery, vehicles, and equipment.
- LIVESTOCK means cattle, sheep, swine, goats, horses, mules, and donkeys.
- POULTRY means fowl kept by the insured for use or sale.
ADDITIONAL COVERAGE BY ENDORSEMENT
- INFLATION GUARD endorsement may be added to provide automatic annual
increase in property limits (FP 04 31).
- REDUCTION IN LIMITS OF INSURANCE. Coverage C may be reduced to an amount
not less than 40% of the dwelling limit.
- SPECIAL LIMITS OF INSURANCE on the basic policy (Coverage C) may be
increased as follows: Jewelry, watches and furs to $5,000, not exceeding
$1,000 on any one article. Money and securities to $1,000 on money and $2,000
on securities. Silverware, for loss by theft, to $10,000. Firearms, by loss by
theft, to $6,000. Use endorsement FP 04 07.
- BUSINESS PROPERTY ON THE RESIDENCE PREMISES, to $10,000. The special
business property limit off premises of $250 is automatically increased to 10%
of the total on-premises limit when this endorsement is used (FP 04 09).
- SPOILAGE COVERAGE. If Coverage E--Scheduled Farm Personal Property--is
used, coverage may be extended for spoilage of perishable farm personal
property caused by the following: breakdown or contamination, meaning a change
in temperature or humidity resulting from mechanical breakdown or failure of
equipment, or contamination of perishable farm personal property by a
refrigerant. This endorsement may also cover if loss is caused by failure of
public power. Endorsement FP 04 24 is used.
- FOREIGN OBJECTS IN MACHINERY (FP 04 20) modifies the insurance under item
12 of Coverage E to provide for payment of loss or damage caused by foreign
objects being taken into farm machinery, vehicles and equipment.
- DEBRIS REMOVAL INCREASED LIMIT OF INSURANCE (FP 04 21) provides for an
increase in the 5% Limit of Insurance applicable for debris removal. The
increased coverage applies when the built-in limit under the Farm Property
Coverage form is exhausted.
- POLLUTION CLEAN UP AND REMOVAL--Additional Aggregate Limit of Insurance
(FP 04 22). The Farm Property Coverage form automatically provides for an
aggregate limit of $10,000 for pollutant clean up and removal. This
endorsement is used to increase the $10,000 annual aggregate limit at
described locations. A minimum deductible of $1,000 applies, but optional
deductibles of $2,500, $5,000, $10,000, $25,000, and $50,000 may be used.
- BORROWED FARM EQUIPMENT (FP 04 23) provides for coverage under Coverage E
or F if included, up to $50,000 blanket insurance on borrowed farm machinery,
vehicles and equipment for up to 30 days.
- GRAIN UNDER GOVERNMENT SEAL (FP 04 27) provides for coverage against
described causes of loss for grain which has been pledged as collateral for a
loan issued by the Commodity Credit Corp. of the U. S. Department of
Agriculture. Coverage is provided on a scheduled basis and insures on an
excess basis over any other coverage by the Commodity Credit Corp.
- OTHER FARM STRUCTURES--BLANKET INSURANCE (FP 04 28) provides for insurance
of other farm structures (Coverage G) that the insured wishes to cover on a
blanket rather than scheduled basis. The schedule of blanket insurance
provides for a description of the location, covered cause of loss, whether on
an actual cash value or replacement cost basis, and total Limit of Insurance.
- SOUND RECEIVING AND TRANSMITTING EQUIPMENT (FP 04 31) provides for
scheduled coverage for loss or damage to sound receiving, recording or sound
receiving and transmitting equipment. If tapes are covered, loss is limited to
$100 per tape. Coverage applies only if equipment is installed on a motor
vehicle or mobile agricultural machinery and equipment.
- SPECIAL LOSS SETTLEMENT ON DWELLINGS (FP 04 35) provides for loss
settlement on the basis of a 50%, 60% or 70% of replacement value on the
dwelling property insured.
- REPLACEMENT COST--HOUSEHOLD PERSONAL PROPERTY (FP 04 36) provides for
coverage on unscheduled household personal property (Coverage C) on a
replacement cost basis.
- ADDITIONAL INSURED--FARM PROPERTY (FP 04 50) provides for designation of
additional insureds for a particular insured location.
- COLLISION RESULTING IN DEATH OF LIVESTOCK (FP 04 56) provides for coverage
under Section E for loss of covered livestock caused by: (1) collision or
overturn of a vehicle on which the livestock are being transported; or (2)
livestock running into or being struck by a vehicle while they are crossing,
moving along or standing in a public road. A limit per animal is selected on
- SCHEDULED PERSONAL PROPERTY (FP 04 61) may be added to the Farm Property
Coverage form for jewelry, furs, cameras, musical instruments, silverware,
golfers’ equipment, fine arts, postage stamps, and coins. The coverage is
similar to the endorsement attached to the Homeowners policy (HO 04 61) and
the personal inland marine scheduled property floater.
- SCHEDULED GLASS (FP 04 67) provides for adding scheduled glass to the
policy described as to size, location and Limit of Insurance. Coverage is
subject to a deductible.
- RENTAL TO OTHERS--THEFT COVERAGE (FP 04 80) provides for extension of the
policy to cover loss by theft while the portion of the resident premises
usually occupied by the insured is occasionally rented in whole or in part to
others or while there is a rental to a roomer or boarder. Applicable only to
basic and broad form causes of loss.
- WINDSTORM OR HAIL EXCLUSION (FP 10 09) provides for the exclusion of
windstorm and hail coverage at scheduled locations and buildings.
- CAUSES OF LOSS--EARTHQUAKE FORM (FP 10 40) provides for earthquake
coverage as a covered cause of loss. Coverage also includes volcanic eruption.
Coverage is subject to a deductible.
- ACTUAL CASH VALUE--DWELLINGS AND APPURTENANT PRIVATE STRUCTURES (FP 12 10)
provides for coverage of dwellings and private structures to be covered on an
actual cash value basis on the schedule at described locations.
- PEAK SEASON ENDORSEMENT (FP 12 29) provides for increased Limits of
Insurance for scheduled or unscheduled personal property for selected
specified periods of time.
- VALUE REPORTING ENDORSEMENT (FP 13 01) provides for a schedule of reports
of personal property values at each described location for periods of each
day, each week or each month. Values may be reported monthly, quarterly or
annually. For scheduled farm personal property or livestock.
- COVERAGE G--OTHER FARM STRUCTURES STATEMENT OF VALUES (FP 16 01) to be
used with the Blanket insurance endorsement FP 04 20. Provides for statement
of values for structures at described locations to accompany request for a
The Farm Property Coverage Form (FP 00 10) is written for an
owner or tenant having an insurable interest in farming or ranching operations.
The form is used with a policy Declarations Page and a Common Policy Conditions
Form to insure specified property against loss. The form contains three types of
insuring sections: Basic, Broad or Special Causes of Loss. The insured chooses
the specific group of causes of loss that he desires. To indicate coverage on
any of the described items, a specific amount of insurance is shown on the farm
schedule which is part of the Declarations Page.
A diagram is required and must show all buildings on the farm
whether covered or not, properly identified, and with the location, size of
building and distance in feet between buildings. Photographs are required for
each covered building. They should be dated to show when they were taken and
this should be no more than 90 days before the date of the application.
FARM COMBINATION COVERAGE
To be eligible for Farm Combination dwelling rates and the
farm combination coverage modification factor, a policy covering farming or
ranching operations must provide property coverage for all farm dwellings, farm
personal property and other farm structures owned by the insured, and bodily
injury and property damage liability coverage for the premises/operations of all
property specified above.
The Coverage C limit - Household Personal Property - is 50%
of the Coverage A - Dwelling limit. Coverage D - Loss of Use - is 10% of the
Coverage A limit on owners' policies and 20% of the Coverage C limit for
The following risks are ineligible for farm combination
- Farms not occupied by the insured unless tenant operated under the
insured's supervision, or operated under contract management;
- Vacant or unoccupied farms;
- Farms owned or controlled by food manufacturers or processors and operated
principally for the purpose of supplying the manufacturing or processing
operations; farms where the principal purpose is to operate freezing or
dehydrating plants or poultry factories;
- Farms with farm dwellings with more than four families; and,
- Farms on which farm dwellings are used for business purposes other than
permitted incidental occupancy.
CLASSIFICATION OF BUILDINGS AND STRUCTURES
The dwellings, barns and other structures on the farm
property are classified in accordance with minimum requirements for each type of
building and structure. There are three types of dwellings classified, three
types of barns and outbuildings, and three types of silos. The following are
important features of the classification system:
TYPE 1 DWELLINGS (minimum insurance of $40,000; $12,000
for tenants): must be of superior character and in excellent condition, showing
evidence of proper maintenance and good housekeeping, and with roof in excellent
Building must have a modern heating system (not space heaters
or stoves) consisting of one of the following: central heating plant consisting
of a permanently installed warm air furnace, hot water, or steam plant resting
on an incombustible base, and venting to a masonry lined chimney built from the
ground, or to an approved factory made vent pipe; or a permanent modern electric
heating system installed by a competent electrician in compliance with local
building code requirements; or rigidly piped and permanently installed,
thermostatically controlled approved gas or oil fueled floor, ceiling or wall
furnace, provided all are vented to a masonry lined chimney built from the
ground, or to a factory made vent pipe; or permanently installed 220 volt
electric heater listed by a recognized testing laboratory and attached by a
three contact plug to an electric wiring system.
Foundation must be continuously enclosed (porches excepted)
and building must have interior plumbing, a modern electrical system, be in good
condition, and properly installed by a competent electrician in compliance with
local building code requirements.
TYPE 2 DWELLINGS (min. limit: $25,000; tenants: $8,000)
Must have good quality interior and exterior modern construction in good
condition with proper maintenance and housekeeping and with a roof in good
The heating system should be modern as outlined under type 1
or have gas or oil fired space heaters or stoves that are thermostatically
TYPE 3 DWELLINGS are those not eligible for types 1 or 2
TYPE 1 BARN, STABLE OR OUTBUILDING (min. Limit of
Insurance: $10,000) Must have superior characteristics and be in excellent
repair. No floor or mow above the lowest ground level and not exceeding a height
of 26 feet from the lowest ground level to peak. The foundation under all
exterior walls must be continuous and of mortared masonry or concrete
construction. The door must be incombustible, and the building must be fully
enclosed with no open sheds attached. No hay or straw storage is permitted.
TYPE 2 BARN, STABLE OR OUTBUILDING (min. limit: $5,000)
Must have better than average characteristics and maintenance. Conforms to the
same foundation requirements of type 1. Building must be framed on poles of
minimum six inch diameter at ground line, set a minimum of four feet below the
ground. Must be fully enclosed and open sheds are permitted at an additional
premium charge. Hay or straw storage is permitted.
TYPE 3 BARNS, STABLES AND OUTBUILDINGS: are all buildings
not eligible for type 1 or 2 classifications. They also may be constructed for
crop drying, grain grinding, seed grain cleaning, and drying, alfalfa or hay
chopping; private greenhouses and portable buildings and structures.
TYPE 1 SILOS (min. limit: $25,000) must be of all steel
reinforced concrete construction with integral roof, foundation and walls with
unloading from the bottom.
TYPE 2 SILOS (min. limit: $10,000) must be of masonry
construction, including tile, hollow concrete block, solid concrete stave, brick
or steel or reinforced concrete not qualifying for Type 1.
TYPE 3 SILOS: all silos not eligible for Type 1 or Type 2
RATE AND PREMIUM
Under the Farm Property coverage form the premium is set up
for Farm Combination policies (Coverages A, B, C, and D) as a series of key
premiums based on a type 1 dwelling with a $250 deductible, class 10 protection
and frame construction. A key premium is set up for each set of Causes of Loss,
Basic, Broad, Special/Broad, and Special.
These key premiums in each state are modified by the Limit of
Insurance, types of dwellings, construction, and protection class.
Farm personal property premiums are set up with key rates for
the various types of personal property, grain, hay, straw, fodder, crops,
livestock, poultry, machinery, and other property. There are three premium
tables for Basic, Broad and Special causes of loss. Rates vary as to the
construction of the building and the protection class.
Rates for other farm structures (Coverage G) are also set up
with rates for each type of structure for basic, broad and special causes of
loss. Rates are also modified for construction and protection class.