Which of the following would be covered under the Film coverage form
ANALYSIS OF POLICY FORM Show
DESCRIPTION OF COVERAGE Insurance for farm properties is written by attaching the Farm Property coverage form to a Common Conditions form and a Declarations Page. The insurance applies only to those items of property in the form opposite which an amount of insurance applies. In some cases, various coverages may be written in combination and an automatic amount of insurance is written based on the limit of liability for dwellings or household personal property limits. A careful legal description of the location of the property is inserted at the top of the Declarations Page. The following property may be covered under this form: COVERAGE A--DWELLING Dwelling, owned by the insured, including structures attached to the covered dwelling, except those attached only by a fence, utility line or similar connection; materials at the described location intended for the use in building, altering or repairing the dwelling or attached structures; and building and outdoor equipment used principally for the service of the residence premises, including equipment temporarily away from the premises (if not otherwise covered separately under the policy). A dwelling on premises away from the insured location may be covered if described in the Declarations and if a Limit of Insurance is shown. Dwelling coverage does not include land, including land on which the dwelling is located; water; or trees, shrubs, plants or lawns (except if permitted by an Extension of Coverage). The selected Limit of Insurance must be at least 80% of the building's replacement value for replacement cost coverage to apply. COVERAGE B - OTHER PRIVATE STRUCTURES APPURTENANT TO DWELLING Private garages (unattached), used solely as a private garage, including outdoor radio and TV antennas and satellite dishes attached to the garage. Coverage may be applied as an additional amount of insurance, up to 10% of the Limit of Insurance under Coverage A. Other owned private structures (including unattached private garages for which coverage is provided under the item above) if the 10% additional amount of insurance is inadequate, and if they are appurtenant and separated from the dwelling by clear space or attached only by a fence, utility line or similar connection. The appurtenant structures coverage is an automatic 10% of the dwelling limit. For other property covered under this section there is no automatic extension of coverage and the limit of liability must be shown in the Declarations and a premium charged. Under Private Structures Coverage B, property not covered includes land; water; structures (other than private garages) that are rented or held for rent to non-tenants of the residence premises; and structures (other than private garages) used principally for farming purposes. SPECIAL LIMITS of INSURANCE under COVERAGES A and B. Outdoor radio and TV antennas and satellite dishes attached to dwellings (Coverage A) or similar property and towers (Coverage B) are subject to a limit of $250 in any one occurrence. This limit is not an additional amount of insurance and applies in excess of any applicable deductible. If a higher limit is specified in the Declarations, the higher limit would apply. COVERAGE C--HOUSEHOLD PERSONAL PROPERTY Coverage includes household personal property owned by or used by the insured and resident members of the family while such property is on the insured location, and at the insured's request, similar property of others while on a part of the resident premises occupied by an insured. Coverage is worldwide, but only 10% may apply to secondary residences. On combination coverage policies, the limit under this coverage is 50% of the dwelling limit. Covered property does not include articles separately described and specifically covered under this or any other insurance; aircraft and parts; trees, shrubs, plants, and lawns owned as a tenant, except as provided under an Extension of Coverage under Coverages A, B or C; animals, birds or fish; business property, except as provided under Special Limits of Insurance; magnetic recording or storage media for electronic data processing, such as cell, disc, drum, film, and tape, for more than their replacement values as prepackaged software programs or in unexposed blank form, whichever is the greater value; any device or instrument for the transmitting, recording, receiving, or reproducing of sound or pictures that is operated by power from the electric system of motor vehicles or motorized land conveyances of any kind, including while in or upon the vehicles: accessories, antennas, and tapes, wires, records, discs, or other media for use with such device or instrument; farm personal property other than office fixtures, furniture and equipment in offices on the resident premises; or motor vehicles or motorized land conveyances, their equipment or accessories. Vehicles not licensed for road use are covered if used only for servicing the insured residence, or if designed and used for assisting the handicapped. SPECIAL LIMITS OF INSURANCE - COVERAGE C Certain kinds of household personal property are subject to special Limits of Insurance. These limits are not additional amounts of insurance and apply in excess of the deductible. The following are subject to special limits:
COVERAGE EXTENSIONS to COVERAGES A, B or C TREES, SHRUBS, PLANTS, AND LAWNS --located within 250 feet of the covered residence are covered for the following causes of loss: fire or lightning, explosion, riot, civil commotion, aircraft, vehicles not owned or operated by a resident, vandalism, or theft.Coverage is available up to 5% of the Limit of Insurance in the Declarations for the residence if the insured is the owner; or 10% of the Limit of Insurance shown in the Declarations for household personal property, if a tenant. The coverage is subject to a limit of $500 for any one damaged or destroyed tree, shrub, plant, or lawn. The extension does not apply to losses to trees, shrubs, plants, or lawns grown for business or farming purposes. This extension applies as additional insurance. INSURED'S HOUSEHOLD PROPERTY (Coverage C) while away from the insured location anywhere in the world, owned or used by the insured or members of the household.Insured's household personal property at any insured's residence away from the insured location shown in the Declarations of the policy is subject to a special Limit of Insurance equal to 10% of the limit for household personal property, or $1,000, whichever is greater. Household personal property at newly acquired residence premises is not permanently subject to this special limit. For a period of 30 days following a move to a newly acquired resident premises, the property is subject to the declared limit for household personal property. This limit applies on a pro rata basis during the 30-day period to personal property at both resident premises. Household personal property of guests or residence employees will be covered while in any residence occupied by an insured; REFRIGERATED PRODUCTS (not farm personal property) are covered for up to $500 for loss or damage to contents of a freezer or refrigerated unit on the resident premises caused by a change in temperature due to interruption of electrical service to refrigeration equipment, caused by damage to generating or transmission equipment; or a mechanical or electrical breakdown of a refrigeration system.Property must owned by the insured and not be farm personal property to be covered under the extension. No deductible applies. Extension under Coverage C for tenants: BUILDING ADDITIONS AND ALTERATIONS, includes additions, alterations, fixtures, improvements, or installations to the part of the residence occupied by the tenant and made or acquired at the tenant's expense. The Limit of Insurance is 10% of the limit applicable to household personal property, unless a higher limit is specified in the Declarations. The extension is additional insurance. COVERAGE D--LOSS OF USE ADDITIONAL LIVING EXPENSE is covered up to the Limit of Insurance shown for Coverage D in the Declarations. This limit is 10% of the limit on the owner's dwelling (Coverage A) or for tenants, 20% of Coverage C.Coverage applies if a covered cause of loss renders the insured's living quarters in the resident premises uninhabitable. The policy pays for any necessary increase in living expense incurred so that the household can maintain its normal standard of living. FAIR RENTAL VALUE is covered if a loss renders uninhabitable any portion of the resident premises that the owner rents or holds for rent to others. Payment is for the fair rental value loss sustained. The policy excludes any expenses that do not continue while the rental portion is uninhabitable.Additional living expenses or fair rental value loss sustained if a civil authority prevents the insured from using the resident premises because of direct damage to neighboring premises is covered, but only for a period of two weeks, and not if expenses are incurred because of cancellation of a lease or agreement. COVERAGE E - SCHEDULED FARM PERSONAL PROPERTY The following property is covered under this section provided a limit is shown in the Declarations for each specific type of property:
Miscellaneous farm equipment does not include (not covered under this section):
Borrowed farm machinery does not include:
Borrowed farm machinery is covered only to the extent that it is not covered under any other coverage form or an other insured policy.
PROPERTY NOT COVERED UNDER COVERAGE E Excluded property includes:
SPECIAL LIMITS UNDER COVERAGE E The special limits are part of, and not in addition to the applicable limits of liability shown in the Declarations.
The highest limit payable for loss or damage to any one head of livestock (other than animals individually described and specifically covered) is the lesser of the following: 120% of the amount obtained by dividing the total insurance on the class and type of animal by the number of head of that class and type owned by the insured at the time of the loss; the actual cash value of the animal; or $2,000. Each horse, mule or head of cattle under one year of age is counted as 1/2 head. COVERAGE EXTENSIONS UNDER COVERAGE E This extension does not apply to property stored or being processed in manufacturing plants, public elevators, warehouses, seed houses or commercial drying plants, in public sales barns or public sales yards, or in transit by common or contract carrier. The loss under this extension is pro rated with any other policy covering the property involved.
Automobiles, trucks, motorcycles, motorized bikes or tricycles, mopeds, dirt bikes, snowmobiles, four-wheel all terrain vehicles, mobile homes or house trailers, vehicles designed and licensed for road use, watercraft, aircraft, liquefied petroleum or manufactured gas or fuel, brooders, fences, windchargers, windmills, or any farm equipment, machinery or vehicles purchased as replacements are excluded under the extension. Additionally acquired livestock is covered for 30 days following acquisition, if livestock is specifically declared in the Declarations with a separate limit shown per class. COVERAGE F--UNSCHEDULED FARM PERSONAL PROPERTY All items of farm personal property on the insured location except for those items specifically excluded under Property Not Covered. The following items are covered while away from the insured location:
PROPERTY NOT COVERED UNDER COVERAGE F Property excluded under Coverage F includes:
SPECIAL LIMITS OF LIABILITY UNDER COVERAGE F Special limits under this section are a part of, not in addition to, the applicable limit of liability shown in the Declarations.
COVERAGE EXTENSION TO COVERAGE F Up to 10% of the limit of liability shown for farm personal property to cover the following property in the open:
The only covered causes of loss applying to the above property are fire, lightning, windstorm or hail, vehicles, and theft.
COVERAGE G--OTHER FARM STRUCTURES The following property is covered under Coverage G provided a Limit of Insurance is shown in the Declarations:
PROPERTY NOT COVERED Items excluded under Coverage G include:
COVERAGE EXTENSIONS TO COVERAGE G Coverage under this extension is not an additional amount of insurance.
Coverage applies only to structures not covered elsewhere, and only for loss caused by aircraft, explosion, fire, lightning, riot or civil commotion, smoke, vandalism, vehicles, windstorm, or hail. Insurance on each farm structure covered under the extension ends when values are reported to the insurer, at the end of 60 days, or when the policy expires. COVERED CAUSES OF LOSS Detailed coverage for causes of loss covered under this form are explained in PF&M Special Analysis on Causes of Loss Forms in section 130.6-1. Included in this analysis is only material which is particularly applicable to the Farm Property Form. BASIC COVERAGE The Farm Property Form includes the cause of loss of theft in its Causes of Loss section which is not included in most Commercial Property Forms (see PF&M section 130.6-1). The following are major features of this cause of loss: Exclusions under this cause of loss are the following:
Applies to Coverages E and F:
BROAD COVERAGE The covered causes of loss under the basic form, plus the following:
SPECIAL COVERAGE Covered Causes of Loss means risks of direct physical damage, unless the loss is excluded. The following are exclusions applicable to special coverage in the Farm Property form:
Following occurrences under Coverage G or if damaged or destroyed property is farm personal property:
Under A, B, C, and D, coverage is available for loss to electrical devices, appliances or wires if the damage is sudden and accidental, or if loss by fire results.
The Special Coverage section of the policy also excludes loss or damage caused by:
GENERAL EXCLUSIONS The following exclusions apply to all covered causes of loss, under the basic, broad or general form:
ADDITIONAL COVERAGES (applicable to all coverages)
ADDITIONAL COVERAGE (applicable to Coverages A, B, C, and D) ADDITIONAL COVERAGE (E and F) The policy pays up to $2,000 to cover cost to research, replace or restore the lost information on farm operations records damaged by a covered cause of loss. ADDITIONAL COVERAGE (E, F and G) Policy pays up to the Limit of Insurance in the Declarations for actual and necessary expenses incurred to resume normal farming operations interrupted as a result of direct physical loss or damage by a covered cause of loss. ADDITIONAL COVERAGE--Collapse (Applies when broad or special causes of loss are specified.) Loss or damage caused by risks of direct physical loss involving collapse of a building or part of it is covered if caused only by one or more of the following:
ADDITIONAL COVERAGE--Pollution Clean-up and Removal Policy pays up to an aggregate limit of $10,000 for expenses incurred to extract pollutants from land or water at the insured location, if the release, etc., of pollutants is caused by a covered cause of loss. LIMITS OF INSURANCE The policy pays the applicable limit shown in the Declarations; or the special limit applicable for certain categories of property. DEDUCTIBLE The policy pays only for the amount of loss which exceeds the deductible amount shown in the Declarations. The standard property deductible is $250. Optional deductible amounts are available and they can apply to each coverage or item separately. Optional deductibles may be for $100, $500. $1,000, $2500, $5,000, $7500, $10,000, and $25,000. LOSS CONDITIONS The Farm Property Policy is subject to the same conditions applicable to losses and loss settlements as found in the Building and Personal Property Coverage Form ( see PF&M Analysis 130.4-2). These are an adaptation and expansion of lines in the Standard Fire Policy, which is no longer a separate part of the form. These conditions are abandonment, appraisal, duties in the event of loss or damage, insurance under two or more coverages, legal action against the insurer, and loss payment adjustments. Other conditions apply to pairs, sets or parts, other insurance, recovered property, transfer of rights of recovery against others to the insurer (subrogation), and unoccupancy and vacancy (if vacant or unoccupied more than 120 consecutive days, limits are reduced by 50%). DEFINITIONS There are a number of definitions in the Farm Property form. Some of the definitions are general in nature, but others relate specifically to the farming business or farming property. Those definitions relating to farming are:
ADDITIONAL COVERAGE BY ENDORSEMENT UNDERWRITING ACCEPTABILITY The Farm Property Coverage Form (FP 00 10) is written for an owner or tenant having an insurable interest in farming or ranching operations. The form is used with a policy Declarations Page and a Common Policy Conditions Form to insure specified property against loss. The form contains three types of insuring sections: Basic, Broad or Special Causes of Loss. The insured chooses the specific group of causes of loss that he desires. To indicate coverage on any of the described items, a specific amount of insurance is shown on the farm schedule which is part of the Declarations Page. A diagram is required and must show all buildings on the farm whether covered or not, properly identified, and with the location, size of building and distance in feet between buildings. Photographs are required for each covered building. They should be dated to show when they were taken and this should be no more than 90 days before the date of the application. FARM COMBINATION COVERAGE To be eligible for Farm Combination dwelling rates and the farm combination coverage modification factor, a policy covering farming or ranching operations must provide property coverage for all farm dwellings, farm personal property and other farm structures owned by the insured, and bodily injury and property damage liability coverage for the premises/operations of all property specified above. The Coverage C limit - Household Personal Property - is 50% of the Coverage A - Dwelling limit. Coverage D - Loss of Use - is 10% of the Coverage A limit on owners' policies and 20% of the Coverage C limit for tenants' policies. The following risks are ineligible for farm combination coverage:
CLASSIFICATION OF BUILDINGS AND STRUCTURES The dwellings, barns and other structures on the farm property are classified in accordance with minimum requirements for each type of building and structure. There are three types of dwellings classified, three types of barns and outbuildings, and three types of silos. The following are important features of the classification system: TYPE 1 DWELLINGS (minimum insurance of $40,000; $12,000 for tenants): must be of superior character and in excellent condition, showing evidence of proper maintenance and good housekeeping, and with roof in excellent repair.Building must have a modern heating system (not space heaters or stoves) consisting of one of the following: central heating plant consisting of a permanently installed warm air furnace, hot water, or steam plant resting on an incombustible base, and venting to a masonry lined chimney built from the ground, or to an approved factory made vent pipe; or a permanent modern electric heating system installed by a competent electrician in compliance with local building code requirements; or rigidly piped and permanently installed, thermostatically controlled approved gas or oil fueled floor, ceiling or wall furnace, provided all are vented to a masonry lined chimney built from the ground, or to a factory made vent pipe; or permanently installed 220 volt electric heater listed by a recognized testing laboratory and attached by a three contact plug to an electric wiring system. Foundation must be continuously enclosed (porches excepted) and building must have interior plumbing, a modern electrical system, be in good condition, and properly installed by a competent electrician in compliance with local building code requirements. TYPE 2 DWELLINGS (min. limit: $25,000; tenants: $8,000) Must have good quality interior and exterior modern construction in good condition with proper maintenance and housekeeping and with a roof in good repair.The heating system should be modern as outlined under type 1 or have gas or oil fired space heaters or stoves that are thermostatically controlled. TYPE 3 DWELLINGS are those not eligible for types 1 or 2 classifications.TYPE 1 BARN, STABLE OR OUTBUILDING (min. Limit of Insurance: $10,000) Must have superior characteristics and be in excellent repair. No floor or mow above the lowest ground level and not exceeding a height of 26 feet from the lowest ground level to peak. The foundation under all exterior walls must be continuous and of mortared masonry or concrete construction. The door must be incombustible, and the building must be fully enclosed with no open sheds attached. No hay or straw storage is permitted.TYPE 2 BARN, STABLE OR OUTBUILDING (min. limit: $5,000) Must have better than average characteristics and maintenance. Conforms to the same foundation requirements of type 1. Building must be framed on poles of minimum six inch diameter at ground line, set a minimum of four feet below the ground. Must be fully enclosed and open sheds are permitted at an additional premium charge. Hay or straw storage is permitted.TYPE 3 BARNS, STABLES AND OUTBUILDINGS: are all buildings not eligible for type 1 or 2 classifications. They also may be constructed for crop drying, grain grinding, seed grain cleaning, and drying, alfalfa or hay chopping; private greenhouses and portable buildings and structures.TYPE 1 SILOS (min. limit: $25,000) must be of all steel reinforced concrete construction with integral roof, foundation and walls with unloading from the bottom.TYPE 2 SILOS (min. limit: $10,000) must be of masonry construction, including tile, hollow concrete block, solid concrete stave, brick or steel or reinforced concrete not qualifying for Type 1.TYPE 3 SILOS: all silos not eligible for Type 1 or Type 2 clarification.RATE AND PREMIUM Under the Farm Property coverage form the premium is set up for Farm Combination policies (Coverages A, B, C, and D) as a series of key premiums based on a type 1 dwelling with a $250 deductible, class 10 protection and frame construction. A key premium is set up for each set of Causes of Loss, Basic, Broad, Special/Broad, and Special. These key premiums in each state are modified by the Limit of Insurance, types of dwellings, construction, and protection class. Farm personal property premiums are set up with key rates for the various types of personal property, grain, hay, straw, fodder, crops, livestock, poultry, machinery, and other property. There are three premium tables for Basic, Broad and Special causes of loss. Rates vary as to the construction of the building and the protection class. Rates for other farm structures (Coverage G) are also set up with rates for each type of structure for basic, broad and special causes of loss. Rates are also modified for construction and protection class. Which of the following losses would most likely not be covered under Coverage A?Which of the following losses would most likely NOT be covered under Coverage A in the dwelling policy? A dwelling policy has a standard deductible that applies to all property coverage, except fair rental value, additional living expense, and the fire department service charge.
Which of the following would you find in the conditions section of an insurance policy?Policy Conditions — the section of an insurance policy that identifies general requirements of an insured and the insurer on matters such as loss reporting and settlement, property valuation, other insurance, subrogation rights, and cancellation and nonrenewal.
Which of the following losses would not be covered by a homeowners policy?Standard homeowners insurance does NOT cover damage caused by flooding, earthquakes, termites, mold, and more exclusions listed in your policy.
Which if the following is not found in a commercial package policy?Commercial package policies can't include certain items like workers' compensation or directors-and-officers insurance. Workers' compensation insurance is required by law and must be purchased as a separate policy. Directors-and-officers policies are necessary for non-profit organizations.
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