1. Forms
2. FP
3. FP-00-13

Farm Property - Farm Personal Property Coverage Form (FP 00 13)

The FP 00 13, Farm Property - Farm Personal Property Coverage Form, is a cornerstone of farm insurance, designed to protect the essential movable property used in farming operations. This form specifically addresses the unique exposures related to farm personal property, which can be diverse and subject to various risks. It functions by allowing farmers to insure their farm personal property against direct physical loss or damage from covered perils. This form is not a standalone policy; it must be used in conjunction with other forms, such as a Causes of Loss form (e.g., FP 10 60) and the Farm Property - Other Farm Provisions Form (FP 00 90), to create a complete coverage package. The FP DS 13 is the declarations page used with this form.

This form offers two primary ways to cover farm personal property:

• Coverage E - Scheduled Farm Personal Property: This allows the insured to list specific items of farm personal property, such as tractors, combines, and other machinery, with a specific limit of insurance for each item. This approach is often preferred by farmers who want to clearly identify which items are insured and for how much. Examples include listing a specific John Deere tractor with its serial number and insured value, or scheduling specific livestock.
• Coverage F - Unscheduled Farm Personal Property (Blanket Coverage): This provides a single limit of insurance for all unscheduled farm personal property. This can include items like tools, supplies, harvested grain, feed, and smaller pieces of equipment not specifically scheduled. However, certain high-value items like combines, cotton pickers, and irrigation equipment are often not eligible for blanket coverage and must be scheduled.

Classes of Business It Applies To

The FP 00 13 is vital for a wide range of agricultural enterprises. Examples include:

• Crop Farms: Operations growing row crops (corn, soybeans, wheat), specialty crops, or hay would use this form to cover tractors, planters, harvesters, irrigation equipment (if scheduled), and harvested crops stored on the farm.
• Livestock Operations: Dairy farms, cattle ranches, hog farms, and poultry operations rely on this form to insure their animals (cattle, swine, sheep, goats, horses, mules, donkeys), as well as machinery like feed grinders, milking equipment (though bulk milk tanks may be covered under FP 00 14), and handling facilities. For livestock, "loss" typically means death or destruction resulting from a covered peril; illness or reduction in value without death is generally not covered.
• Hobby Farms and Smaller Agricultural Businesses: Even smaller-scale farming operations that have significant investment in equipment and supplies would benefit from this coverage.
• Farms with Borrowed or Rented Equipment: The form can provide coverage for farm machinery, vehicles, and equipment that are borrowed or rented, provided they are in the insured's care, custody, or control and not used at the owner's premises.

It's important to note that "farming" is a defined term and typically includes agricultural and aquacultural enterprises, including roadside stands selling products principally produced by the insured. It generally does not include retail activities beyond that or mechanized processing operations unless specifically endorsed. "Agritainment" activities (like pumpkin patches or farm tours) are typically excluded and require separate coverage considerations.

Special Considerations

• Valuation: Unless endorsed otherwise, losses are typically settled on an Actual Cash Value (ACV) basis. Replacement cost coverage may be available for certain mobile agricultural machinery and equipment via endorsement.
• Coinsurance: For unscheduled farm personal property (Coverage F), an 80% coinsurance clause usually applies and typically cannot be waived. Failure to meet this requirement can result in a penalty at the time of loss.
• Property Not Covered: The form contains a list of "property not covered," which agents should review carefully with insureds. This often includes items like aircraft, motor vehicles licensed for road use (except certain farm wagons/trailers), contraband, and growing crops (which require separate crop insurance). Bulk milk tanks and similar items might be better covered under the FP 00 14 (Barns, Outbuildings, and Other Farm Structures).
• Coverage Extensions: The form includes several important coverage extensions, which may apply to Coverage E, Coverage F, or both. These can include:
  • Newly acquired farm machinery (often with a limit like $100,000 for up to 30 days).
  • Replacement machinery (often covering the replaced item's limit plus an additional amount like $75,000 for 30 days).
  • Additional livestock purchased (often 25% of the total livestock limit for 30 days).
  • Farm personal property in transit with a common or contract carrier (often a sub-limit like $1,000, which can be increased).
  • Borrowed or rented farm equipment without a written contract (may have a limit like $10,000 for 30 days, or a higher blanket limit like $50,000 via endorsement FP 04 23).
• Coordination with Other Forms: It's crucial to understand that FP 00 13 works in tandem with other forms. The Causes of Loss Form (FP 10 60) dictates the perils insured against, and the Farm Property - Other Farm Provisions Form (FP 00 90) provides additional coverages, conditions, and definitions that apply across the farm policy.
• Special Limits: Certain types of property may have special limits of insurance. For example, hay, straw, or fodder in the open might have a limit per stack (e.g., $10,000). Miscellaneous unscheduled equipment may have a per-item limit (e.g., $3,000).

Key Information for Agents and Underwriters

• Risk Assessment: A thorough understanding of the farming operation is critical. This includes the types of crops or livestock, the scale of the operation, the age and condition of machinery, storage practices for grain and feed, and any unique exposures like precision agriculture technology or custom farming operations for others.
• Scheduling vs. Blanket: Agents should guide clients on the pros and cons of scheduling versus blanketing property. High-value, critical machinery is often best scheduled to ensure adequate limits and clarity of coverage. A detailed inventory is essential for proper scheduling. Blanket coverage can be suitable for lower-value, numerous items, but the coinsurance requirement must be carefully managed.
• Valuation Accuracy: Ensuring accurate values for scheduled items (ACV or replacement cost if endorsed) and for the total blanket limit is crucial to avoid underinsurance and coinsurance penalties. Market conditions for used equipment and commodity prices for grain/livestock can fluctuate, requiring regular review of insured values.
• Coverage Gaps: Be aware of potential gaps. For instance, "agritainment" exposures are generally not covered under the standard farm forms and may require a Commercial General Liability (CGL) policy or specific agritainment endorsements. Growing crops require separate crop insurance. Pollution incidents may have limited coverage, and endorsements like FP 04 22 (Pollutant Clean Up and Removal Additional Aggregate Limit of Insurance) might be necessary.
• Endorsements: Numerous endorsements are available to tailor coverage. Examples include:
  • FP 04 20 (Foreign Objects in Machinery): Can add coverage for damage caused by foreign objects ingested by machinery.
  • FP 04 23 (Borrowed Farm Equipment): Can increase coverage for borrowed equipment.
  • FP 12 29 (Peak Season Endorsement): Useful for operations with fluctuating inventory values (e.g., harvested crops).
  • FP 04 08 (Farm Computer Coverage): Provides coverage for electronic data processing equipment and media.
  • Replacement Cost endorsements for mobile agricultural machinery or household personal property.
• Underwriting Guidelines: Underwriters will scrutinize the farm's loss history, maintenance practices for equipment, fire protection measures (especially for stored commodities), and overall management quality. The definition of "farming" and any ancillary operations will be key underwriting considerations. For livestock, the causes of loss may be restricted to Basic or Broad form perils, even if Special Form applies to other property.
• Declarations (FP DS 13): This supplemental declarations page is critical for accurately listing scheduled property, applicable limits, and chosen causes of loss for different categories of farm personal property.