1. Forms
2. FP
3. FP-00-12

Form FP 00 12: Farm Property - Farm Dwellings, Appurtenant Structures And Household Personal Property Coverage Form

1. What the form is

The FP 00 12 form is a cornerstone of farm property insurance, specifically designed to provide coverage for the personal, non-farming aspects of a farm or ranch. It functions much like a homeowners policy but is tailored to the unique exposures present on a farm. This form covers direct physical loss or damage to:

• Coverage A - Dwellings: This includes the main dwelling on the insured location, materials and supplies on or next to the "insured location" used to construct, alter, or repair the dwelling or other structures on the "insured location," and, if not otherwise covered in this policy, building equipment and outdoor equipment used for the service of and located on the "insured location".
• Coverage B - Other Private Structures Appurtenant to Dwellings: This covers private structures owned by the insured that are appurtenant to a covered dwelling and separated from it by clear space, or attached only by a fence, utility line, or similar connection. Importantly, structures used principally for farming purposes are typically not covered under this section and would require coverage under a form like FP 00 14 (Barns, Outbuildings and Other Farm Structures).
• Coverage C - Household Personal Property: This applies to household personal property owned or used by an insured while it is on the "insured location". At the insured's request, it can also cover household personal property owned by others while on the part of the "insured location" occupied by an insured, or owned by a guest or residence employee while in any residence occupied by an insured.
• Coverage D - Loss of Use: This provides for additional living expenses if a covered loss makes the dwelling uninhabitable, and fair rental value if a part of the dwelling rented to others or held for rental is made uninhabitable.

The FP 00 12 is part of the ISO (Insurance Services Office) farm program and is typically combined with other forms, such as a Causes of Loss form (like FP 10 60) and the Common Policy Conditions (IL 00 17), to create a complete farm policy. The related form FP DS 12 is likely a declarations page specific to the coverages provided under FP 00 12, where specific limits and details for Coverages A, B, C, and D would be outlined.

2. Classes of business it applies to

This form is primarily used for individuals, families, sole proprietorships, or family-held corporations that own and occupy a farm or ranch where both personal and commercial (farming) exposures exist. Since over 90% of farms in the U.S. fall into these ownership categories, the FP 00 12 is widely applicable. It addresses the residential exposures of the farm, separating them from the purely agricultural operations.

Real-world examples:

• A family operating a dairy farm lives in a house on the farm property. The FP 00 12 would cover their dwelling, a detached garage used for personal vehicles, their household belongings, and loss of use if a covered peril, like a fire, damages their home.
• An individual owns and operates a large grain farm and resides in a home on the premises. The FP 00 12 would cover their residence and personal property. Any barns, silos, or large detached workshops used primarily for farm operations would need to be insured under a separate form like FP 00 14.
• A couple runs a small organic vegetable farm and lives on-site. Their home, a garden shed used for personal gardening tools (not farm tools), and their personal contents are covered by FP 00 12.

3. Special considerations

• Use of Structures: A critical distinction for Coverage B (Other Private Structures) is the use of the structure. If a detached garage is used to store personal vehicles and household items, it's likely covered. However, if that same garage is primarily used to store farm implements or conduct farm-related business, it would need to be scheduled under FP 00 14.
• Business Property: Coverage C (Household Personal Property) has limitations for "business property" (property pertaining to any trade, profession, or occupation other than farming). While office fixtures, furniture, and equipment used for the farm office within the dwelling might have some coverage, other farm personal property (like tools, supplies, and products used in the farming operation) are specifically excluded under Coverage C and need to be insured under forms like FP 00 13 (Farm Personal Property Coverage Form). Endorsements like FP 04 09 can increase special limits on business property.
• Valuation: Dwellings (Coverage A) are typically valued at Replacement Cost, provided insurance is maintained to at least 80% of the dwelling's replacement value at the time of loss. Household Personal Property (Coverage C) is typically valued at Actual Cash Value (ACV), but this can be endorsed to Replacement Cost using FP 04 36. It's important to note that unlike many personal lines homeowners policies, the ISO Farm Program generally does not automatically provide "extended replacement cost" on the dwelling; the limit shown on the declarations is the maximum payable.
• "Agritainment": Property related to "agritainment" activities (farm-based entertainment or tourism) is generally not covered under the standard FP 00 12 and may require specific endorsements or separate policies.
• Vacant or Unoccupied Buildings: If a covered dwelling is vacant or unoccupied for a specified period (often 60 days), coverage for certain perils like vandalism, sprinkler leakage, building glass breakage, water damage, and theft may be suspended or reduced. The 04/16 edition of the form changed the penalty for vacant or unoccupied buildings for other covered losses from a 50% reduction to a 15% reduction in payment.
• FAIR Plans: In some states, FAIR (Fair Access to Insurance Requirements) Plans may offer coverage using the FP 00 12 form for farm dwellings when coverage is unavailable in the standard market, often on an Actual Cash Value basis and for named perils.

4. Key information for agents and underwriters

• Accurate Declarations (FP DS 12): Precision in completing the declarations page is crucial. This includes accurately describing the insured location(s) and listing the correct limits for each coverage (A, B, C, D). Any errors can jeopardize coverage.
• Distinguishing Personal vs. Farm Use: Underwriters must carefully assess the use of all structures and personal property to ensure they are appropriately covered under FP 00 12 (for personal/residential exposures) or other farm forms like FP 00 13 or FP 00 14 (for farm/business exposures). Site inspections or detailed questionnaires can be valuable.
• Insurance to Value (ITV): For Coverage A (Dwellings) to qualify for replacement cost settlement, maintaining at least 80% insurance to value is typically required. Agents should regularly review valuations with insureds, especially given fluctuating construction costs. Underwriters will scrutinize ITV calculations.
• Coverage Gaps: A common gap is failing to separately schedule and insure structures used for farming purposes under FP 00 14, mistakenly assuming they fall under Coverage B of FP 00 12. Another is inadequate coverage for business personal property or farm personal property.
• Endorsements: Numerous endorsements are available to tailor coverage. Examples include:
  • FP 04 36: Replacement Cost – Household Personal Property.
  • FP 04 09: Increased Special Limits on Business Property.
  • FP 04 04: Dwelling and Farm Building Replacement Cost Protection (Including Ordinance or Law Coverage).
  • FP 04 08: Farm Computer Coverage (can apply to FP 00 12 for household computers).
  • FP 12 10: Actual Cash Value – Dwellings and Appurtenant Private Structures (if replacement cost is not desired or appropriate).
• Causes of Loss: The FP 00 12 must be paired with a Causes of Loss form (e.g., FP 10 60 - Causes of Loss Form–Farm Property), which will specify whether coverage is Basic, Broad, or Special. The choice of Causes of Loss form significantly impacts the perils insured against.
• Older Homes: Homes older than 75 years may require closer underwriting scrutiny to ensure they are structurally sound and in fair condition. Electrical systems in older homes are a particular concern.
• Drones: Drones used for the farm operation will generally not be covered as household personal property under FP 00 12.