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farm property insurance
- to keep pace with chages in faming operations
- farms today - large business operations with heavy investments in land, buildings, livestock and farm equipment
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Farm Coverage Part includes
- 1. One or more farm declarations Forms (Property and/or liability)
- 2. Farm Coverage Forms
- 3. endorsements
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Farm property coverage form
- 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
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Causes of Loss
- 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
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exclusions
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
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Additional coverages
- 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
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Business property
property pertaining to any trade, profession or occupation other than farming
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Dwelling
building used for family residency , including mobile, modular and prefabricated homes
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Farm personal property
equipment, supplies, and products of farming
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livestock
cattle, sheep, swine, goats, horses, mules and donkeys
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Poultry
fowl kept by isnured for use or sale
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securities
negotiatible or nonnegotiable instruments or contracts presenting either money or other property
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Specified cause of loss
basic form and broad form cause of loss
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Livestock coverage form
- 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
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Mobile Agricultural Machinery and Equipment Coverage Form
- 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
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Crop Insurance
- specialized policy, protects insured against reduced yield because of a covered loss to crops before they are harvested
- growing crops excluded
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Crop hail insurance
- 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
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multi-peril crop insurance (mpci)
- 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
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Coarse grains
corn, grain, sorghum and soybeans
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small grains
wheat, barley, oats, rye and flax
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harvest
combining an insured crop, or cutting for hay, silage or fodder
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silage
a product that results from severing the plant from land and choppoing it for the purpose of livestock feed
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