What it does
FP 04 31 raises the limits of insurance on covered buildings and structures under FP 00 12 and FP 00 14 by the annual percentage shown, applied pro rata through each policy year from the inception or last anniversary limit. Buildings listed in the schedule are excluded from the increase.
Who needs it
Farms whose building values rise with construction costs during the policy term.
Quoting and selling notes
Useful on multi-year terms and in periods of high building cost inflation; it does not replace a periodic valuation. Wording reviewed: 01 98 edition.
How it fits the farm policy
A farm program endorsement changes only the coverage forms named in its "this endorsement modifies" list. Everything else in the Farm Coverage Part keeps working as written: the FP 00 90 additional coverages, conditions and definitions, the causes of loss selected from FP 10 60, and the farm liability forms. When presenting a quote, list each farm endorsement with its schedule entries (insured location, building or item, limit, deductible) so the insured can see exactly where the base coverage was broadened or narrowed.
