1. Forms
2. FP
3. FP-00-10

What the form is

The Farm Property Coverage Form (FP 00 10) is a standard insurance form designed to provide broad property coverage for commercial farming operations where the owner also resides on the premises. Its primary purpose is to combine various property coverages into a single form, addressing both the residential and farming exposures of the insured. This form covers the main dwelling, related private structures, household personal property, farm personal property (which can be insured on a scheduled or unscheduled basis), and other farm structures like barns and outbuildings. The form itself typically incorporates the causes of loss (Basic, Broad, or Special), which would be specified in the Declarations.

Classes of business it applies to

This form is specifically designed for commercial farms that are owned and occupied by the insured. It is suitable for:

• Owner-occupied family farms.
• Commercial agricultural enterprises where the principal dwelling of the owner/operator is on the insured farm location.
• Ranching operations with similar owner-occupancy characteristics.

For example, a family operating a dairy farm and living in a house on the same property would be a typical candidate for this coverage form. It also applies to tenants who have an insurable interest in the farming or ranching operations and the property they use.

Special considerations

• Policy Composition: The FP 00 10 is typically attached to a Common Policy Conditions form (like IL 00 17) and a policy jacket/declarations page to create a complete policy. The Farm Property - Other Farm Provisions Form (FP 00 90) may also be included to standardize definitions and conditions.
• Declarations are Key: Coverage only applies to those items of property for which a limit of insurance is shown in the Declarations. A careful and accurate legal description of the farm's location is crucial.
• Causes of Loss: While the framework for Basic, Broad, or Special causes of loss is incorporated within the FP 00 10, the specific level of coverage selected will be indicated in the Declarations. The form includes specific exclusions applicable to the chosen causes of loss.
• Theft Coverage: Notably, this form generally includes theft as a covered cause of loss, which is not always standard in commercial property forms. However, specific exclusions related to theft apply, such as for property from a building under construction until it is completed and occupied.
• Valuation: Loss settlement provisions are detailed within the form. For dwellings (Coverage A) and Other Private Structures Appurtenant to Dwellings (Coverage B), replacement cost coverage may apply if certain conditions are met (e.g., insurance to 80% of replacement cost). Otherwise, or for other property types, Actual Cash Value (ACV) is common unless endorsed differently (e.g., via FP 12 10 for ACV on dwellings).
• Mandatory Endorsements: Depending on the jurisdiction or insurer, certain mandatory endorsements may apply.

Key information for agents and underwriters

• Risk Eligibility: Primarily for owner-occupied commercial farms and ranches. Assess the mix of personal residential exposure and commercial farming exposure.
• Detailed Scheduling: Ensure all property to be insured is accurately described and valued in the Declarations, especially for scheduled farm personal property.
• Coverage Sections: Familiarize yourself with the different coverage parts (typically A through G in the 09 94 edition of FP 00 10), which address specific types of property:
  • Coverage A: Dwellings
  • Coverage B: Other Private Structures Appurtenant to Dwellings
  • Coverage C: Household Personal Property
  • Coverage D: Loss of Use (including Additional Living Expense and Fair Rental Value)
  • Coverage E: Scheduled Farm Personal Property
  • Coverage F: Unscheduled Farm Personal Property
  • Coverage G: Barns, Outbuildings, and Other Farm Structures
• Built-in Coverages: Be aware of additional coverages and coverage extensions automatically included, such as debris removal, reasonable repairs, coverage for trees, shrubs, and plants near the dwelling, limited coverage for private garages (often 10% of Coverage A), and limited off-premises coverage for household personal property (often 10% of Coverage C).
• Endorsement Needs: Identify the need for specific endorsements based on the insured's operations and exposures. Examples include:
  • FP 10 40 for earthquake coverage.
  • FP 04 22 to increase limits for pollutant clean-up.
  • FP 12 10 if Actual Cash Value is preferred for dwellings.
  • Windstorm or Hail Exclusions (e.g., FP 10 09) in high-risk areas or for premium credit.
• Underwriting Considerations: Pay attention to the farm's specific operations, condition and maintenance of property, distance to fire protection, and any unique hazards. The form is designed for an operating farm; vacant or unoccupied properties may have coverage limitations or require specific endorsements.