1. Forms
2. FP
3. FP-10-60

What the form is

The FP 10 60 Causes of Loss Form - Farm Property is a standard Insurance Services Office (ISO) form used in farm insurance policies. Its primary purpose is to define which perils (causes of loss) are covered for the insured farm property. It also outlines the exclusions and limitations that apply to these covered perils. This form does not provide coverage on its own but works in conjunction with various farm property coverage forms (like those for dwellings, personal property, barns, and mobile agricultural equipment) to specify what types of losses will be paid. The declarations page of the policy will indicate which version of the causes of loss (Basic, Broad, or Special) applies to each type of covered property.

Classes of business it applies to

This form is specifically designed for agricultural and farming operations. It applies to a wide range of farm types, from small family farms to larger commercial agricultural enterprises. Examples of where this form would be used include:

• Coverage for a farmhouse against fire.
• Protection for barns and outbuildings from windstorm damage.
• Coverage for farm personal property, like tools and supplies, against theft (subject to specific theft exclusions and limitations within the form).
• Coverage for mobile agricultural machinery against specified perils.

Special considerations

Several important considerations apply when using the FP 10 60:

• Covered Perils: The extent of coverage (Basic, Broad, or Special) is critical and will be specified on the declarations page for different categories of property. Basic typically covers a limited list of named perils (e.g., fire, lightning, explosion, windstorm, hail, smoke, vandalism). Broad expands on Basic by adding more named perils. Special provides all-risk coverage, meaning anything not specifically excluded is covered.
• Exclusions: The form contains numerous exclusions. For example, it excludes coverage for theft from the part of the principal residence rented to others, though this can sometimes be modified by endorsement. There are also exclusions related to vacancy (e.g., vandalism coverage may cease if a building is vacant for more than 60 days, an increase from 30 days in earlier editions). Other common exclusions relate to ordinance or law, earth movement (unless earthquake coverage is added), governmental action, nuclear hazard, war, and power failure occurring off-premises.
• Agritainment: A significant change in more recent editions is the introduction of the term "agritainment" (tourism or entertainment on the insured location related to agriculture). Agritainment exposures are generally excluded unless specific endorsements (like FP 05 05) are added to buy back coverage.
• Vacancy and Unoccupancy: The form has specific provisions regarding vacancy and unoccupancy which can limit or reduce coverage, particularly for perils like vandalism, and glass breakage. Endorsement FP 04 75 (Unoccupancy and Vacancy Permit) can modify these provisions.

Key information for agents and underwriters

Agents and underwriters should pay close attention to the following:

• Matching Coverage to Needs: Ensure the selected causes of loss (Basic, Broad, or Special) align with the insured's risk exposure and expectations for each category of farm property.
• Explaining Exclusions: Clearly communicate key exclusions to the insured, especially those related to common farm exposures or activities like agritainment.
• Endorsements: Be aware of available endorsements that can modify coverage, such as those to add or remove exclusions (e.g., FP 01 60 Exclusion of Loss Due to Virus or Bacteria ), or to provide coverage for specific exposures like agritainment or higher limits for debris removal.
• Risk Assessment: The choice of causes of loss will impact pricing. Special Form will generally be more expensive than Basic or Broad. Underwriters need to assess the specific risks of the farm operation, including its location (e.g., susceptibility to windstorm or hail, which might necessitate percentage deductibles via endorsements like FP 03 05 ), types of structures, and operational activities.
• Consistency with Other Forms: The FP 10 60 must be used with other forms like the FP 00 90 (Farm Property - Other Farm Provisions Form), which contains additional coverages, conditions, and definitions that interact with the Causes of Loss form. Understanding how these forms work together is crucial for accurate coverage interpretation.