1. Forms
2. FP
3. FP-05-20

What the Form Is

The FP 05 20, titled "Scheduled Farm Personal Property Away From the Insured Location," is an endorsement to a farm insurance policy. Its primary purpose is to extend property coverage to specific items of farm personal property when they are located away from the primary "insured location" described in the policy declarations. This form allows the insured to list (schedule) particular items of farm personal property, along with their specified values, ensuring they are covered even when temporarily at other locations not normally covered by the base policy. The covered Causes of Loss for property insured under this endorsement are typically the same as those shown on the policy declarations for other farm personal property.

Classes of Business It Applies To

This endorsement is designed for farming and ranching operations where it is common for personal property to be moved off the main farm premises. Examples include:

• Agricultural machinery and equipment (e.g., tractors, combines, plows) used at leased or rented fields, or while being transported between locations.
• Mobile irrigation equipment moved to different fields.
• Harvested crops or supplies temporarily stored at a location not listed as an insured premises.
• Livestock temporarily at a show, market, or another pasture not part of the insured location (though specific livestock forms like FP 00 40 might also be relevant or preferred depending on the insurer and situation).
• Bees in hives and accessories when away from the insured location (coverage for bees is specifically when in the hive).

Special Considerations

• Scheduling is Key: Coverage under this endorsement applies only to property specifically listed (scheduled) on the form or in the policy declarations, with a designated limit of insurance for each item. Unscheduled property taken off-premises would likely rely on limited or no coverage under the base policy.
• "Insured Location" Definition: Farm policies often have strict definitions of the "insured location." Property moved beyond these boundaries without an endorsement like FP 05 20 may lose coverage. It is crucial if a farmer expands acreage or holdings that these new locations are properly identified and covered.
• Interaction with Other Coverages: This endorsement works in conjunction with a primary farm personal property coverage form, such as FP 00 13 Farm Property–Farm Personal Property Coverage Form.
• Not for All Off-Premises Situations: Some farm policies might offer a small, unscheduled limit for certain property temporarily off-premises. The FP 05 20 is for situations exceeding that or for specifically ensuring higher-value items are covered adequately.

Key Information for Agents and Underwriters

• Needs Assessment: Agents should discuss with farm clients how often and where they move farm personal property. If significant values are regularly off-premises, this endorsement is crucial.
• Accurate Scheduling and Valuation: It's vital to ensure that all property intended for off-premises coverage is accurately described and valued on the schedule. Under-scheduling can lead to inadequate coverage at the time of loss.
• Risk Assessment of Other Locations: Underwriters may need to consider the risks associated with the locations where the scheduled property will be used or stored, although the form primarily extends coverage rather than underwriting new locations in detail.
• Premium Impact: Providing this extended coverage typically involves an additional premium. Some rating manuals suggest applying a factor to the standard rate for the scheduled items.
• Clarity on Covered Perils: Confirm that the perils applying to the scheduled property off-premises are understood by the insured and align with their needs (usually mirrors the on-premises coverage).
• Distinction from Transit Coverage: While this endorsement covers property away from the insured location, which can include transit, specific transit coverage might be more appropriate for long-haul or very specific shipping risks.