1. Forms
2. FP
3. FP-00-14

Farm Property - Barns, Outbuildings And Other Farm Structures Coverage Form (FP 00 14)

The FP 00 14 Farm Property - Barns, Outbuildings And Other Farm Structures Coverage Form is a cornerstone of farm property insurance. Its primary purpose is to provide direct physical loss or damage coverage for various farm structures that are not dwellings. This includes essential agricultural buildings such as barns, silos (including grain storage bins), portable buildings, and even farm fencing. Coverage under this form, often referred to as Coverage G in a farm policy, is typically activated by listing specific structures on the policy's Declarations page (such as the related FP DS 14 or a similar schedule), with a corresponding limit of insurance for each. This form works in conjunction with a Causes of Loss form (e.g., FP 10 60) and the Farm Property - Other Farm Provisions Form (FP 00 90) to define the scope of protection.

Classes of Business It Applies To

This form is essential for a wide array of agricultural operations that have significant investments in structures beyond the primary farm dwelling. Examples include:

• Livestock Operations: Dairy farms for milking parlors and cattle barns; poultry farms for chicken houses; equine facilities for stables, training arenas, and hay storage.
• Crop Farming: Grain farms requiring coverage for grain bins, machine sheds, and implement storage buildings.
• Specialty Farms: Operations like wineries or orchards that may have dedicated buildings for processing or storage of agricultural products on the farm premises.
• General Farming Operations: Any farm that utilizes outbuildings for workshops, storage of farm supplies, or has extensive fencing for livestock or boundary marking.

Real-world example: A family-owned dairy farm would use the FP 00 14 to insure its main dairy barn, a separate heifer barn, its tall concrete stave silo used for silage, and the extensive board fencing enclosing its pastures. Each of these structures would be listed on the declarations with a specific coverage amount.

Special Considerations

Several important factors must be considered when utilizing the FP 00 14:

• Principal Use of the Structure: A critical aspect is that the insured structure must be used principally for farming purposes. If a structure, even if located on the farm, is primarily used for a non-farm business or as a private structure appurtenant to a dwelling (and not for farming), it may need to be insured under a different coverage form (e.g., FP 00 12 for non-farm appurtenant structures or a commercial property form). Real-world example: A detached garage on farm property used solely to store the farmer's personal vehicles and lawnmower might be covered under FP 00 12 (Other Private Structures Appurtenant to Dwellings). However, if that same garage is primarily used to repair and store tractors and farm implements, it must be scheduled under FP 00 14.
• Scheduling of Structures: Typically, each barn, outbuilding, or other farm structure must be individually listed (scheduled) on the Declarations page (e.g., FP DS 14) with a specific limit of insurance. Endorsement FP 04 28 (Coverage G – Barns, Outbuildings and Other Farm Structures – Blanket Insurance) can modify this to provide coverage on a blanket basis for all eligible structures, usually subject to an 80% coinsurance clause. If blanket coverage is chosen, the insured may need to specify any structures that are to be excluded.
• Valuation: Losses can be settled on an Actual Cash Value (ACV) basis or, if elected and conditions are met (like an 80% coinsurance requirement), on a Replacement Cost (RC) basis. Note that if the cost to repair or replace is above a certain threshold (e.g., $5,000 or 5% of the insurance limit), settlement might revert to ACV unless specific endorsements state otherwise.
• Attached Equipment: Items like bulk milk tanks or bulk feed tanks that are attached to buildings or structures can often be covered under this form.

Key Information for Agents and Underwriters

Agents and underwriters should focus on the following when dealing with the FP 00 14:

• Accurate Scheduling and Valuation: Ensuring all farm structures are correctly identified, described, and valued on the Declarations (FP DS 14 or similar) is paramount to prevent underinsurance, especially when Replacement Cost coverage is desired. The FP 16 01 (Coverage G – Barns, Outbuildings and Other Farm Structures Statement of Values) can be a useful tool, particularly with blanket coverage.
• Risk Assessment:
  • Construction & Condition: The age, construction materials (wood frame, steel, pole-built), current condition, and maintenance level of each structure are primary rating and underwriting factors. Older structures or those in disrepair present higher risks.
  • Occupancy & Use: The specific farming activities conducted within or around the structures (e.g., hay storage creating a fire hazard, livestock confinement leading to building damage, chemical storage) directly impact the risk profile.
  • Hazards & Protection: Evaluate exposure to perils like windstorm, hail, snow load, and fire. Consider proximity to fire departments, availability of on-site water, and any existing fire or lightning protection systems.
• Potential Coverage Gaps:
  • Be vigilant about structures not used for farming; these may require different coverage.
  • Foundations, land, and underground elements are often excluded or have very limited coverage.
  • Coverage for newly built or acquired structures might be limited until they are formally added to the policy; check for any automatic coverage provisions and their limitations.
• Underwriting Guidelines: Consider the overall farm management practices, loss history, and financial stability of the operation. The concentration of values in a single area or building also impacts underwriting decisions.
• Endorsements: Be familiar with relevant endorsements such as blanket coverage (FP 04 28) , options for valuation (ACV vs. RC) , and potential for Ordinance or Law coverage (which might be available via endorsements like FP 04 05).