Chapter 7

• to keep pace with chages in faming operations
• farms today - large business operations with heavy investments in land, buildings, livestock and farm equipment

• 1. One or more farm declarations Forms (Property and/or liability)
• 2. Farm Coverage Forms
• 3. endorsements

• pay for direct physical loss to covered property resulting from a covered cause of loss
• must be a limit shown in Declarations
• Coverage A - Dwellings
• Coverage B - other private structures
• Coverage C - household personal property
• Coverage D - loss of Use
• Coverage E - Scheduled Farm Personal property - separate limit for each class of property applies
• Coverage F - Unscheduled Farm Personal Property - a single blanket limit for farm personal property applies
• Coverage G - Other Farm structures

• Basic, Broad, or Special Form
• Basic - the rest similar to commercial policy except collision (coverage E & F only), Earthquake loss to livestock, Flood loss to Livestock
• Broad - 5 additional cause of loss
• electrocution of covered livestock, attacks on covered livestock by dogs or wild animals; accidental shooting of covered livestock; drowning of covered livestock from external causes; loading/unloading accidents
• Special - open peril coverage for insured property other than livestock ; will not pay for dishonesty of insured and employee, release of pollutants unless caused by a specified cause of loss

not cover losses caused directly or indirectly by law, earth movement (except sinkhole collapse), government action, intentional loss, nuclear hazard, off-premises services, war and military action, or flood or surface water

• debris removal, resonable repairs, damage to property removed for safekeepting, fire department service charge- apply to all coverages
• A, B, C and D - removal of fallen trees (up to $500); credit cards and fund transfer cards (up to $500)
• E and F - cost of restoring farm operations records
• E, F, G - extra expense
• collapse - except basic form
• pollutant clean up and removal

property pertaining to any trade, profession or occupation other than farming

building used for family residency , including mobile, modular and prefabricated homes

equipment, supplies, and products of farming

cattle, sheep, swine, goats, horses, mules and donkeys

fowl kept by isnured for use or sale

negotiatible or nonnegotiable instruments or contracts presenting either money or other property

basic form and broad form cause of loss

• purchased when insured does not buy Farm property coverage form as livestock is the only exposure
• written on named peril basis
• covers death resulting from fire, lightning, wind or hail, explosion, riot, collision with vehicles on public roads, sinkhole collapse, volcanic action, vandalism and theft
• excludes freezing in snowstorms, mysterious disappearance
• limit - apply per animal or class of animal
• automatically cover additional acquired livestock up to 30 days
• all property must be insured at ACV

• insured does not buy Farm Property Coverage Form
• machinery and equip the only farm exposure
• written either blanket or scheduled basis
• 80% coinsurance clause
• self-propelled harvester combines and cotton pickers with limit of insurance (scheduled)
• exlcudes- dishonesty, irrigation equip, marring, mechanical breakdown, changes in temp

• specialized policy, protects insured against reduced yield because of a covered loss to crops before they are harvested
• growing crops excluded

• named peril coverage
• fire, lightning, wind and freezing, frost plus hail
• rates developed by Crop hail insurance actuarial association
• deductible - 5% yield reduction
• coverage ceases when crop is harvested
• payment of insured loss - reduces the total amt of insurance available
• include replanting provision - to reduce both insured and insurer's losses, insurer reimburse up to 20% of amt of insurance, does not reduce the amt of insurance

• written by private insurers
• reinsured by Federal Crop Insurance Corporation
• cover approximately 200 different crops
• 90% for 5 major crops - corn and maize, cereal grains, soybeans, tobacco and cotton
• causes of loss - adverse weather conditions, fire, inscets, plant diesase, wildlife, earthquake, and volcanic eruption
• property and casualty insurance guaranty associations- not liable for losses

corn, grain, sorghum and soybeans

wheat, barley, oats, rye and flax

combining an insured crop, or cutting for hay, silage or fodder

a product that results from severing the plant from land and choppoing it for the purpose of livestock feed