Summary: In an attempt to simplify the farm program, ISO moved many items that were previously oft repeated and hard to find into one separate form, FP 00 90 09 03. Those items that apply to all farm property coverages are on this form.

Topics covered: Additional coverages

Conditions

Definitions

Limits of insurance and deductible

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Additional Coverages

A.Additional Coverages

1.Debris Removal

a.We will pay your expense to remove debris of Covered Property caused by or resulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date of direct physical loss or damage.

b.Except as provided in Paragraph d. below, the most we will pay under this Additional Coverage is 25 percent of:

(1)The amount we pay for the direct physical loss of or damage to Covered Property; plus

(2)The deductible in this policy applicable to that loss or damage.

c.This Additional Coverage does not apply to costs to:

(1)Extract “pollutants” from land or water; or

(2)Remove, restore or replace polluted land or water.

d.Debris removal expense is included in the Limit of Insurance applying to the damaged property. But if:

(1)The amount payable for the sum of direct physical loss or damage and debris removal expense exceeds the applicable Limit of Insurance; or

(2)The debris removal expense exceeds the amount payable under the 25 percent limitation in Paragraph b. above; an additional 5 percent of the Limit of Insurance applying to the damaged property will be available to cover debris removal expense.

2.Reasonable Repairs

We will pay the reasonable cost to make necessary repairs to protect Covered Property from further damage after a loss insured against has occurred.

Payment under this Additional Coverage will be subject to, not in addition to, the Limit of Insurance applying to the property being repaired.

3.Damage to Property Removed for Safekeeping

We will pay for loss to Covered Property damaged by any cause during or up to 30 days after its removal from a building endangered by a Covered Cause of Loss.

Payment under this Additional Coverage will be subject to, not in addition to, the Limit of Insurance applying to the property being removed.

4.Fire Department Service Charge

We will pay the liability you have assumed by contract or agreement for fire department charges incurred when the fire department is called to save or protect Covered Property from a Covered Cause of Loss. But we will not pay fire department service charges if the property is located within the limits of the city, municipality or protection district furnishing the fire department response.

The amount we pay under this Additional Coverage will be in addition to any Limit of Insurance that applies under this Coverage Form.

No deductible applies to this Additional Coverage.

5.Collapse

The following Additional Coverage applies when BROAD or SPECIAL Covered Causes of Loss is specified in the Declarations:

a.With respect to buildings:

(1)Collapse means an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose;

(2)A building or any part of a building that is in danger of falling down or caving in is not considered to be in a state of collapse;

(3)A part of a building that is standing is not considered to be in a state of collapse even if it has separated from another part of the building;

(4)A building that is standing or any part of a building that is standing is not considered to be in a state of collapse even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion.

b.We will pay for direct physical loss or damage to Covered Property, caused by collapse of a building or any part of a building that is covered under a Farm Property Coverage Form or that contains property covered under a Farm Property Coverage Form, if the collapse is caused by one or more of the following:

(1)The “specified causes of loss” or breakage of building glass, all only as insured against in this Coverage Part;

(2)Decay that is hidden from view, unless the presence of such decay is known to an “insured” prior to collapse;

(3)Insect or vermin damage that is hidden from view, unless the presence of such decay is known to an “insured” prior to collapse;

(4)Weight of people or personal property;

(5)Weight of rain that collects on a roof;

(6)Use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling or renovation. However, if the collapse occurs after construction, remodeling or renovation is complete and is caused in part by a cause of loss listed in Paragraphs b(1) through b(5), we will pay for the loss or damage even if use of defective material or methods, in construction, remodeling, or renovation, contributes to the collapse.

The criteria set forth in Paragraphs a.(1) through a.(4) do not limit the coverage otherwise provided under the Causes of Loss Form . Farm Property for the causes of loss listed in Paragraphs b.(1), b.(4) and b.(5).

c.With respect to the following property:

(1)Foundations and retaining walls;

(2)Underground pipes, flues and drains;

(3)Cesspools and septic tanks;

(4)Walks, roadways, patios and other paved surfaces;

(5)Awnings;

(6)Fences;

(7)Outdoor equipment including yard fixtures;

(8)Swimming pools; and

(9)Bulkheads, docks, piers and wharves;

if the collapse is caused by a cause of loss listed in Paragraphs b.(2) through b.(6), we will pay for loss or damage to that property only if:

(1)Such loss or damage is a direct result of the collapse of a building insured under a Farm Property Coverage Form; and

(2)The property is Covered Property under a Farm Property Coverage Form.

d.This Additional Coverage will not increase the Limits of Insurance provided in this Coverage Part.

6.Pollutant Clean Up and Removal

We will pay your expense to extract “pollutants” from land or water at the “insured location” if the discharge, dispersal, seepage, migration , release or escape of the “pollutants” is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date on which the Covered Cause of Loss occurs.

This additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration, or effects of “pollutants”. But we will pay for testing which is performed in the course of extracting the “pollutants” from the land or water.

The most we will pay under this Additional Coverage, for each location listed in the Declarations as an “insured location,” is $10,000 for the sum of all such expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy.

Analysis

Debris removal. When a covered cause of loss results in debris of covered property, the policy covers the insured's expense to remove such debris from the insured location. This expense is included in the limit of insurance for the covered property. The limit of liability for this additional coverage is included in the limit of insurance applying to the damaged property (25 percent of the actual amount paid). If that limit does not suffice to cover the expense of debris removal, an additional 5 percent of the limit is also available to apply exclusively to debris removal. For example:  With a dwelling insured for $200,000 that suffers a $40,000 fire loss, the amount available for debris removal would be $10,000. If that were not enough to cover the debris removal expense, the insured could apply an additional $10,000 (5 percent of $200,000)..

Two exclusions and a time limit on reporting should be noted:

1. The time to report such a loss is limited to 180 days from the date of the direct loss to the covered property.

2. It is also clarified that this coverage does not apply to costs to extract pollutants from land or water or to remove, restore, or replace polluted land or water.

Reasonable repairs. Within the limit of liability for the type of covered property, the policy covers the reasonable cost of necessary repairs to protect the property from further damage after an insured loss. Although using slightly different language, this clause provides essentially the same coverage as the reasonable repairs clause of the ISO homeowners policy.

Damage to property removed for safekeeping. Property removed from a building endangered by a covered cause of loss is covered against damage by any cause for up to thirty days after its removal. Payment under this additional coverage is subject to—not in addition to—the limit of insurance applying to the property being removed.

The language of this clause differs in one important way from the language of the similar clause in the ISO homeowners forms. The farm form provides coverage for “loss to covered property damaged by any cause,” rather than the homeowners coverage “against direct loss from any cause.” ISO gives no indication in their explanatory material for the farm property coverage form that it intends a narrower meaning for the farm than for the homeowners coverage, but losses such as theft and mysterious disappearance have in a few court decisions been construed as loss of—but not damage to—property.

Fire department service charge. The farm property form pays for charges made when fire department is called to save or protect covered property from a covered cause of loss. This coverage is subject to two prerequisites:

1. The insured must have a contract with the fire department agreeing to the charge. The policy does not specify that the contract or agreement must be in writing; and

2. The property may not be located within the limits of the city, municipality, or fire protection district furnishing the response.

This is additional coverage, not subject to the insurance limits or deductible for the property coverage, and — unlike the similar clause in the ISO homeowners policy, which has a $500 limit — this coverage has no specified limit.

Collapse. Section 5 provides additional coverage—collapse. This provides limited collapse coverage on all property for which either broad or special—but not basic—causes of loss coverage applies.

This coverage is similar to the collapse coverage of the ISO homeowners forms, with minor differences in language and arrangement. There is only one possible difference in coverage—the farm property form covers “collapse from weight of people or personal property” but does not mention animals; the homeowners policy covers collapse from “weight of contents, equipment, animals, or people.” But since farm animals are personal property, this difference in wording has little effect on the coverage provided. Additionally, the homeowners policy does not specifically allow for coverage due in part to defective materials when there is another covered cause of loss, as allowed by the farm property form.

Pollutant Clean Up and Removal. Under additional coverage 6, the policy pays for the expense incurred to extract pollutants from land or water at the insured location. However, the policy does not provide coverage unless the release, discharge, or dispersal of such pollutants is caused by or results from a covered cause of loss. Such loss must occur during the policy period and be reported to the insurer within 180 days of the date of direct physical loss.

The current form includes an exclusion of the costs for pollution testing, monitoring, or assessment of the existence, concentration, or effects of pollutants. However, the form does pay for testing that accompanies the extraction of pollutants from land or water.

The limit on this coverage is $10,000 per policy period. However, that limit applies to each insured location.

Conditions