A single set of forms and endorsements is used for both monoline and package policies. Because farms share similarities with both residential and commercial risks, the farm forms have characteristics in common with both homeowners and commercial forms.     

Under the previous farm program, all property coverages (residential and commercial) and causes of loss were included in the same form, FP 00 10 09 94 That form has now been replaced with five separate forms. “Farm Property—Farm Dwellings, Appurtenant Structures, and Household Personal Property Coverage Form” (FP 00 12 01 98) consists of the following “personal” coverage, A,B,C, and D:

A.     Dwelling

B.     Structures appurtenant to the dwelling

C.     Household contents

D.     Loss of use, i.e., additional living expense and rental loss

“Farm Property—Farm Personal Property Coverage Form” (FP 00 13 01 98) covers:

E.     Scheduled farm personal property

F.     Unscheduled farm personal property.

Barns, outbuilding and other farm structures are covered on form FP 00 14 01 98.

Under the previous farm program, all three causes of loss—basic, broad, and special—were included on the FP 00 10. The insured's choice of perils was indicated on the declarations page. The new program has the causes of loss as a separate form, FP 10 60 01 98. The insured still chooses and still makes an indication on the declarations page. However, now the perils are separated from the rest of the coverages.

The final new form, FP 00 90 01 98, “Other Farm Provisions” consists of various additional coverages, conditions, and definitions common to more than one of the new forms listed above.

A complete policy comes with the common policy conditions (form IL 00 17 11 98) and common policy declarations—along with the farm coverage declarations. The common policy conditions are: cancellation, changes, examination of books and records, inspections and surveys, premiums, and transfer of rights and duties.

As mentioned, the causes of loss are no longer part of the basic farm property form. Rather, they are on form FP 10 60 01 98. The three sets of perils are basic, broad, and special.

The basic perils are akin to those of homeowners form HO-1: fire, lightning, windstorm, hail, explosion, riot, civil commotion, vehicles, aircraft, smoke, vandalism and malicious mischief, glass breakage, and theft. Numerous exceptions and additions to this list pertain specifically to covered farm structures and farm personal property.

The broad perils, like HO-2, are: the basic perils plus falling objects; weight of ice, snow, or sleet; plumbing discharge; rupture of steam or hot water heating systems, air conditioning systems, or water heaters; freezing of plumbing or similar devices; and damage from artificially generated electricity. The broad perils of the farm form includes certain livestock perils as well.

The special perils, once called “all risks” and now expressed as covering “risks of direct physical loss” are also subject to many modifications for the farm exposures.

Like ISO's current commercial program, the liability coverage is provided under a separate form and either property or liability coverage may be written independently. Also, other commercial coverages may be added to the policy. A single farm personal-commercial liability coverage form, FL 00 20 01 98, is used whether the insured is buying a package of property and liability insurance or simply a monoline farmers personal liability policy.

A few risks are not eligible for form FL 00 20. In that case, farm premises liability coverage endorsement FL 04 11 (basic) or FL 04 37 01 98 (broad) can be added to a commercial general liability (CGL) form. Personal liability coverage endorsement FL 04 12 01 98 may also be added.

The farm inland marine coverages for mobile agricultural machinery and equipment and livestock are included as coverage forms FP 00 30 01 98 and FP 00 40 01 98 respectively.

Endorsements extend or modify the coverage offered by basic farm coverage forms.

Division four of the ISO Commercial Lines Manual groups together the rules for writing all of the ISO farm coverages. The first 13 rules, relating to general items—policy term, computation of premium for other than annual prepaid policies, rounding procedures for rates and premiums, cancellation, etc.—are similar to those of division five covering fire and allied lines. Other rules discussed below relate specifically to farm exposures.

The 14th rule provides definitions for (a) classes of construction (b) farming and ranching and (c) farm property.

There are five classes of construction: frame; masonry, including masonry veneer; noncombustible; fire resistive; and mixed masonry-frame. But some of the farm definitions differ from their counterparts in the commercial property section.

·     The monoline definition for frame includes brick veneer while the farm section allows brick veneer to be classed as masonry.

·     In order for “fire resistive” to be applied to a building, the commercial property rules require that the walls, roof, and floors have a fire resistance rating of at least one hour. The farm rules contain no such requirement.

·     The farm section adds the “mixed construction” class. If a building is part masonry and part frame, the insurance company may rate it as masonry if the frame portion is no more than 33.3% of the entire building.

The definition of farming and ranching contains three sections:

·     The growing and marketing of field crops, fruits, mushrooms, nuts, or vegetables, flowers, greenhouse or nursery stock, or sod.

·     The raising or keeping of bees, fur bearing animals, livestock (except commercial feed lots), poultry, or worms.

·     The conducting of aquaculture (cultivation of the natural products of the water).

The inclusion of the marketing requirement emphasizes that only a farm operated for money can be considered a “farm.” Thus, a few acres operated by a homeowner raising food for personal consumption cannot be classified properly as a “farm.” In view of this, many homeowners insurers may need to examine their underwriting restrictions on farm situated personal dwellings.

Farm property is defined in these rules in terms of the various items covered by farm property form FP 00 10—dwellings and barns, for example, and silos and household goods and various classes of farm personal property.  Naturally, these definitions are quite similar to the definitions of these same terms found in the form itself.

In addition to eligibility rules for the individual coverage, rule 19 spells out the general eligibility rules for farm property, liability, and inland marine risks. These coverages may be written for any owner or tenant having an insurable interest in farming or ranching operations or in mobile agricultural equipment or livestock.

Farm combination coverage rule 20 preserves the pricing benefits and minimum coverage requirements of the former farmowners-ranchowners program. To be eligible for farm combination coverage, property coverage must be written on all farm dwellings, farm personal property, and other farm structures owned by the insured. Specific items may be excluded by mutual agreement. Bodily injury and property damage liability coverage must be written to cover operations and premises exposures wherever farm property is insured.

The following types of farms are not eligible for farm combination coverage:

·     Farms not operated by the insured, unless tenant-operated under the insured's supervision or operated under contract management.

·     Vacant or unoccupied farms.

·     Farms supplying the insured himself with commodities for his own manufacturing or processing operations. A dairy farmer who also processes and delivers milk to retail customers is one example.

·     Freezing or dehydrating plants or poultry factories.

·     Farms with dwellings of more than four families.

·     Farms on which dwellings are used for business purposes other than any permitted incidental occupancy.

Rule 24 on deductibles provides that a standard $250 deductible applies to the farm property. This may be reduced to $100 for a premium surcharge of 10%. The insured also has the option  of increasing the deductible to any desired level. Rule 36.c.3.f. provides a table of rate factors for $100, $500, and $1,000. Deductibles above $1,000 are “a” rated (refer to the insurer).

See specific other treatments under this Farms tab with regard to rules that govern the various individual coverages.