Farm
a property where a farmer or rancher both resides and conducts commercial business
? Homeowners coverage for personal property
? Commercial coverage for business assets
? Farm Insurance, combining both in one policy
A farmer needs
Additional protection for livestock
What type of additional coverage does a rancher need compared to a farmer
Properties not eligible:
Properties not eligible for farmers insurance
Farm insurance coverage A
insures the main dwelling on the farm, as well as all other structures attached to it. This includes materials located on the premises that are used in building, repairing, or altering the main dwelling
Coverage A- Dwelling for farming insurance
? For main dwelling, attached structures, and necessary materials
? Up to $5,000 for damaged grave markers
Trees, , shrubs, plants, or lawns
What i not covered with farming insurance coverage A without an endorsement
? Debris removal
? Pollution clean-up
? Reasonable repairs
? Fire department service charge
? Consequential loss
What extensions are available for farming coverage A
Farming Insurance Coverage B- Other Private Detached Structures
Covers private structures not attached to main dwelling:
? Detached garages or porches
? Guesthouses
? Patios
? Sheds (unless used for farming purposes)
? Outdoor antennas (up to $1,000 per occurrence)
? Limit: 10% of Coverage A limit
Farming Insurance Coverage C
provides insurance protection for theft of, or damage to, an insured's personal property, such as furniture, appliances, or electronics.Includes personal property of family and guests staying on the premises
? Has a limit of 50% of Coverage A
Farming Insurance Coverage C Items with Special Limits
? $200 on cash, platinum, and gold (other than goldware)
? $1,500 on letters of credit, manuscripts, passports, and securities
? $1,500 on watercraft and associated engines and trailers
? $1,500 on trailers not used for watercraft or farming
? $2,500 on b
Farming Insurance Coverage C- Special Limits for Theft
? $2,500 for furs, jewelry, precious stones, and wristwatches
? $2,500 for pure goldware, silverware, and other items whose value is principally derived from gold or silver content
? $3,000 for firearms
Farming Loss of Use
Pays additional living expenses resulting from a covered peril
? Includes Fair Rental Value if insured had tenants
? Applies when civil emergency, such as fire or flooding, makes home uninhabitable
? Sets a limit of 10% of Coverage A
$1,000 - the policy covers only satellites and antennas at $1,000 per occurrence
Lightning destroys a $5,000 satellite dish that Farmer Carla recently installed. Assuming Carla meets the 80% coinsurance requirement, how much would her farm policy pay for the damages to the satellite dish?
$9,000; The policy covers up to 2500 for jewelry and silverware and the couch is covered with coverage A
Zane's farmhouse was burglarized. The thieves stole his $4,000 sofa, his $3,000 silverware collection, and his $5,000 watch. Under Zane's farm insurance policy, which has a Coverage A limit of $150,000, how much can he expect to receive in indemnification
Farm Insurance
combines homeowners coverage and commercial coverage.
Scheduled vs. Unscheduled
Types of farm personal property
Scheduled Farm Personal Property Form
the insured is given an exhaustive farm inventory list, and he selects from the list only those items he wants to insure. He and the insurer then establish a value for each selected item, as well as a cause of loss form for each. Separate Causes of Loss f
Unscheduled Farm Personal Property Form
provides blanket coverage, rather than coverage for specific items only. The insured is presented with a similar farm inventory list, but in this case, he provides a detailed inventory of all farm property located on the insured premises. Based on the val
? Farm machinery
? Grain, hay, straw or fodder stored in buildings or structures, or stored in the open in bales, stacks, or trucks
? Livestock on or away from the premises
? Farm packing materials and supplies
? Farm implements
? Specialized machinery an
Scheduled Farm Personal Property covers
Unscheduled Farm Personal Property
This coverage option uses actual cash valuation in the event of a claim. Additionally, the insured must carry a level of insurance equal to at least 80% of the total inventory value.
Barns, Outbuildings and Other Farm Structures coverage
? Barns, Silos, and Granaries.
? Pens and Fencing (except field and pasture fencing).
? Corrals and Livestock chutes.
? Feeding structures.
? Outdoor masts, towers, and antennae.
? Farming storage structures.
? Construction or repair materials kept on or
Valuation
Actual Cash Value unless noted otherwise
loss or damage to private light and power poles. These are covered for up to $250 per occurrence.
Barns, Outbuildings, and Other Structures does have an extension for
? Land
? Field or pasture fencing
? Foundations
? Pilings or piers
? Cost of excavations, grading, or filling
? Structures also used as dwellings
Barns, Outbuildings, and Other Farm Structures coverage cannot be applied to:
The hay was being transported.
Jamie is hauling a load of hay from the market to her farm when a strong gust of wind tips over the trailer on the highway and scatters her hay everywhere. If Jamie has Scheduled Farm Personal Property coverage, why won't the insurer pay for her loss?
$20,000
Rodney has a typical farm policy with a limit of $200,000 for the main house. During a storm, lightning strikes a $2,500 satellite dish, which sparks a fire that destroys a little guest house worth $25,000. How much can Rodney receive from his insurer in
$22,050
Terry is fully insured by his farm policy. When a tornado rips through Terry's farm, it destroys a barn worth $15,600, a corral and two livestock chutes worth $6,200, and a light pole worth $400. How much indemnification can Terry expect to receive for th
? Mobile Agricultural Machinery and Equipment Form
? Livestock Floater
Two Inland Marine Forms are commonly added to Farm policies
Inland Marine Insurance
a special form of coverage designed to protect property in transit. It covers various types of moving or moveable items, but focuses mainly on physical property that is either frequently transported or is used in transportation
Mobile Agricultural Machinery and Equipment Form
? Covers agricultural machines and their tools and equipment
? Allows higher limits of insurance than other forms
? Provides scheduled or unscheduled (blanket) coverage
? Requires coinsurance for full coverage to apply
? Gives open-peril coverage, with Ac
? Equipment for sale or on consignment
? Machinery used in logging or forestry
Property not covered with the Mobile Agricultural Machinery and Equipment Form
Livestock Floater
? Covers horses, mules, cattle, swine, sheep, and goats.
? Provides scheduled or unscheduled coverage.
? Includes animal injured or killed while in transit.
? Provides named-peril coverage.
? Requires coinsurance from the insured.
Livestock Floaters coverage
Farmers can add this coverage on a scheduled or unscheduled basis, but either way, they must purchase a level of insurance equal to 80% of the value of the insured animals. Named-peril protection, and they also cover animals injured or killed while in tra
Poultry
___________do not fall under the coverage of a livestock policy, but farmers can purchase a nearly identical policy
Farm Property- Causes of Loss Forms
Every farm coverage followed by Causes of Loss form
? Form can be Basic, Broad, or Special
? Very similar to other policy types, but with extra livestock protections
FI Cause of Loss Basic Form covered perils:
Fire
Lightning
Smoke
Wind
Hail
Explosions
Riot
Vandalism
Civil Commotion
Theft
Aircraft
Vehicles
Sinkhole Collapse
Volcanic Activity
Loss of Livestock by Flood
Loss of Livestock by Earthquake
FI Cause of Loss Broad Form
Covers all Basic Form perils, plus:
Falling Objects
Weight of Ice, Sleet, or Snow
Glass breakage
Sudden and accidental tearing apart
Accidental discharge or leakage of water or steam
Sudden and accidental discharges of electricity
Collapse
Electrocution o
FI Cause of Loss Special Form exclusions
? Normal wear and tear, or purposeful neglect
? Rust, corrosion or decay
? Settling, cracking or shrinking of structures
? Infestation by rodents, vermin or birds
? Mechanical breakdown
? Disappearance of farm property, unless proof provided the property
Broad Form and Special Form
Lanny was unloading his steers from the transport when the ramp slipped off the back of the trailer and two steers fell and broke their legs. As a result of this accident, Lanny had to put down the injured steers. Which farm policy cause of loss form woul
Farm Liability Insurance
? protects the farmer against liability for harm caused to others.
? includes attorney fees and court costs.
? is available in several different types.
FI Bodily Injury and Property Damage Liability
? covers damage or injury caused by normal business operations.
? Applies to damages that occur on insured premises
FI Personal and Advertising Injury
? pays for claims not involving property damage or bodily injury.
? includes malicious prosecution, wrongful entry or eviction, and libel or slander.
FI Medical Payments
indemnifies a farmer for medical injuries that people suffer on farm property, or as a result of the farmer's activities on or off the insured premises. This coverage includes medical, dental, hospital, and funeral costs, up to policy limits
Farm Product Liability
Covers injury or illness caused by eating the farmer's products.
Farm Pollution Liability
? covers pollution damage caused by farm property and operations.
? includes animal waste overflow, chemical spills.
? does not include chemical over-spray from aircraft (separate endorsement required).
Custom Farming Liability
? covers farmers doing contract work.
? Will not apply if a farmer makes more than $5,000 per year as a contractor
Farm Employees Liability
? is available by endorsement.
? covers employee injuries not allowed under Workers' Comp
Loss Settlement Valuations
? Actual Cash Valuations, unless noted differently
? If Replacement Cost coverage, coinsurance is required
smallest of three amounts:
1) the cost to replace the damaged part of the structure with equivalent construction
2) the amount actually spent on necessary repairs or replacements
3) the policy limit
If the farmer meets the coinsurance requirement, the insurer will pay the
the larger of two amounts:
1) the actual cash value of the damaged part of the structure
2) a fraction of the structure's replacement cost that is proportional to the amount of insurance the farmer has compared to how much she should have had to meet the
If the farmer doesn't meets the coinsurance requirement, the insurer will pay the
1. Insurer pays actual cash value at first.
2. Claimant has 180 days to say they will repair or replace damaged property.
3. After completing replacement, claimant must submit another claim
4. Then insurer will pay for full repair or replacement cost
FI Process for Paying Replacement Cost Claims
Farm Pollution Liability
Sydney has just been sued by several residents of the town downstream from her farm. According to the lawsuit, the residents have been getting sick from pesticide runoff from Sydney's bean fields. What type of insurance coverage will protect Sydney in thi
Custom farming liability
Farmer Fred hired Farmer Bob to apply chemicals to a field of tomatoes. Thinking that Fred was talking about a field of potatoes, Bob inadvertently destroyed the field of tomatoes by applying chemicals that were meant for potatoes. What type of coverage w
Farm Product Liability
Roy's crop of spinach goes to market, but after several confirmed cases of E.coli, the produce is pulled from the shelves. What type of insurance coverage does Roy need to cover the claims submitted by the people infected by his tainted spinach?
The insurer will pay Rosa $45,000 first, and then up to another $15,000 once repairs are completed.
Rosa's barn burned down when it was struck by lightning during a storm. The barn was fully insured at replacement cost under Rosa's Farm policy. At the time of the loss, the barn was valued at $45,000, but it will cost $60,000 to replace it. How will Rosa