1. Forms
2. FP
3. FP-00-30

What the form is

The FP 00 30, Mobile Agricultural Machinery and Equipment Coverage Form, is an insurance policy form designed to provide coverage for direct physical loss or damage to an insured's mobile agricultural machinery and equipment. This includes items like tractors and other farm machinery designed principally for off-road use. The form can provide coverage on either a scheduled basis, where individual items are listed with specific limits of insurance, or on a blanket basis, where a single limit applies to all covered machinery and equipment. Unlike some other farm property forms, the FP 00 30 is a self-contained, stand-alone form that includes its own causes of loss provisions and does not need to be combined with a separate causes of loss form like the FP 10 60. It can be used as a monoline policy.

Classes of business it applies to

This form is specifically designed for agricultural operations, including farms and ranches that own, lease, or borrow mobile agricultural machinery and equipment.

Real-world examples:

• A crop farmer insuring their tractors, combines (if specifically scheduled), plows, and planters.
• A livestock operation insuring its feed trucks (if primarily for off-road farm use and not licensed for road use), and other mobile equipment used in managing livestock.
• Farms that rent or borrow specialized equipment for seasonal tasks and need to insure it while in their care, custody, or control.

Special considerations

• Property Not Covered: The form has a specific list of "property not covered," which typically includes aircraft, watercraft, automobiles, motorcycles, snowmobiles, ATVs (unless specifically described and declared), vehicles primarily designed and licensed for road use (with some exceptions for farm wagons/trailers), irrigation equipment, and contraband. Bulk milk/feed tanks and bins may be better covered under FP 00 14 (Farm Property—Barns, Outbuildings and Other Farm Structures Coverage Form). Cotton pickers and harvester/thresher combines often need to be specifically described and declared.
• Relationship with FP 00 13: While it can be used alongside the FP 00 13 (Farm Property—Farm Personal Property Coverage Form), the FP 00 30 is considered primary if there's an overlap in coverage, with FP 00 13 responding as excess. Using both can sometimes lead to confusion.
• Valuation: Unless endorsed otherwise (e.g., with a replacement cost endorsement), losses are typically adjusted on an Actual Cash Value (ACV) basis. A replacement cost endorsement is available for specifically listed items insured to at least 80% of their replacement value.
• Declarations: Accurate information on the declarations page (FP DS 31 is the specific declarations for this form) is crucial, as the coverage form makes many references to it.
• Monoline Policy: This form can be issued as a standalone (monoline) policy.
• Newly Acquired Property: The form includes coverage extensions for newly acquired additional property (e.g., up to $100,000 for 30 days) and replacement property (e.g., limit of the replaced item plus $75,000 for 30 days), subject to conditions.
• Borrowed or Rented Equipment: An automatic limit (e.g., $10,000) may be available for borrowed or rented mobile agricultural machinery and equipment not specifically listed.

Key information for agents and underwriters

• Risk Assessment: Carefully assess the types of machinery used, their values, and how they are used (on or off-premises). The definition of "mobile agricultural machinery and equipment" is key.
• Scheduling vs. Blanket: Determine if a scheduled or blanket approach is more appropriate for the insured. Blanket coverage typically comes with an 80% coinsurance requirement that cannot be waived. For high-value or specialized equipment, scheduling is often preferred for clarity.
• Coverage Gaps: Be aware of the "property not covered" section to avoid gaps. For example, vehicles licensed for road use generally need separate auto coverage. Irrigation equipment is a notable exclusion.
• Valuation: Discuss ACV vs. Replacement Cost options with the insured, especially for newer or high-value equipment. Ensure scheduled items meet the 80% insurance-to-value requirement if replacement cost is desired.
• Endorsements: Several endorsements can modify this coverage, such as those for foreign objects in machinery, replacement cost, or limited coverage for unmanned aircraft (drones) via FP 04 30 (Limited Coverage for Unmanned Aircraft). The mandatory FP 01 60 (Exclusion of Loss Due to Virus or Bacteria) should be attached unless specific alternative endorsements (FP 05 30 or FP 05 31) are used.
• Causes of Loss: Since this form is self-contained, underwriters need to be familiar with its specific covered causes of loss and exclusions, which may differ from those in the standard FP 10 60 (Causes of Loss Form - Farm Property).
• Precision Agriculture: As farms increasingly use technologically advanced equipment (precision agriculture), ensure these items fit the definitions or consider specific endorsements if needed.
• Deductibles: The standard deductible applies per occurrence. Endorsements like FP 03 04 (Single Farm Property Per Occurrence Deductible) can create a single per-occurrence deductible if multiple farm coverage parts are involved in a single loss.