Though “simplified” in terms of more informal language of the “we,” “us,” and “our” (insurer) and the “you” or “your” (insured) variety, the contract is actually quite complex.

Also, users of the farm form who are accustomed to working with homeowners will find it awkward that the definitions section is placed in a separate form, FP 00 90 09 03, “Farm Property—Other Farm Provisions.” In addition, the causes of loss provisions for all levels of coverage—basic, broad, and special—are all on another form, FP 10 60 02 09, with only the declarations pages signaling what provisions apply to which property items.

Topics covered: Arrangement of the coverage Farm property declarations Farm property rules

Arrangement of the Coverage

Within each of the seven property coverages, distributed over three forms, there is a list of accompanying provisions. These provisions have all been pared to just three: covered property; property not covered; and special limits of liability (if any). The previously remaining four provisions (covered causes of loss, additional coverages, coverage extensions, and coverage conditions) have been moved to different forms.

Farm Property Declarations

ISO has drafted five different advisory farm property coverage declarations that member insurers are invited to adopt or adapt for their individual use. These forms fill several sheets with very small print. Individual insurers are free, however, to redesign the declarations to a more readable form if they wish.

Form FP DS 10 09 03 is the advisory declarations sheet for the following farm property coverages:

1.     Dwellings

2.     Appurtenant Structures

3.     Household Personal Property

4.     Loss of Use

5.     Scheduled Farm Personal Property

6.     Unscheduled Farm Personal Property

The first page of form DS 10 09 03 contains the usual spaces for policy number, company and producer names, named insured, mailing address, policy period, and insuring agreement.

In addition, there is a space for “insured locations” listed by number and location. It is always a good idea for the producer to provide as much information as possible to help pinpoint the precise location of the farm property. Such information might include section or civil district, township, range, and distance in miles by compass direction from nearest town. Also useful is information about any state or county roads leading to the property, including the exact location of the road and how to find it.

The second page of form DS 10 09 03 provides for scheduling of locations, coverage agreements, farm outbuildings, limits for various types of unscheduled farm personal property, covered causes of loss, limits, and so on. At the bottom of the second page are spaces showing any increases in special limits of insurance, and for describing other property that is to be added to the form's list of property to be excluded from unscheduled farm personal property under coverage F.

The third page contains information traditionally shown at the beginning of the declarations page: mortgage holders, deductible, forms applicable, premium, and countersignature.

The program provides a second declarations page, declarations page B—schedule of “farm personal property” for coverage E, FP DS 11 09 03. The schedule displays each item number and property description and identifies with respect to each the applicable perils and limit of insurance. The first eighteen items describe specific kinds of property. For some, it must be noted separately if they are located in buildings or sheltered and, otherwise, in the open. For example, the first item is for grain, threshed seeds, beans, ground feed, silage, “livestock” feed, all in buildings or structures, in sacks, on wagons or trucks. Item two is for grain in stacks, shocks, swathes or piles in the open. For others, item twelve for example (farm machinery, vehicles and, equipment), there is space for describing specific pieces.

There are additional blank spaces on the schedule for describing other specific items as needed. Dec page B also has space below the schedule for listing names and addresses of loss payees.

The other three advisory property declarations pages are:

1.     Advisory Farm Inland Marine Coverage Declarations.

2.     Advisory Mobile Agricultural Machinery and Equipment Coverage Form Declarations.

3.     Advisory Livestock Coverage Form Declarations.