1. Forms
2. FP
3. FP-12-29

What the form is

The Peak Season Endorsement, FP 12 29, is an endorsement to a farm insurance policy that provides for increased Limits of Insurance for scheduled or unscheduled farm personal property. This increase is temporary and applies only during specific periods designated in the endorsement schedule. The purpose is to address situations where the value of farm personal property fluctuates predictably throughout the year due to seasonal activities, such as harvest time when grain storage is at its peak, or when seasonal inventory like seeds or fertilizer is temporarily increased.

Classes of business it applies to

This endorsement is specifically designed for farming and ranching operations where the value of personal property changes significantly with the seasons. Examples include:

• Grain farms that have substantially higher values of harvested crops on hand during and immediately after harvest season.
• Livestock operations that may have increased numbers of animals at certain times of the year (e.g., before market or after birthing seasons).
• Farms that store larger quantities of supplies like feed, seed, or fertilizer at specific times in preparation for planting or other seasonal activities.

For instance, a farmer might have a standard limit of $100,000 for unscheduled farm personal property, but during the harvest months of September and October, the value of stored grain could increase to $200,000. The FP 12 29 endorsement would allow the farmer to schedule this $100,000 increase specifically for those two months.

Special considerations

It's important for the insured to accurately predict their peak seasons and the corresponding increase in property values to ensure adequate coverage without overpaying for insurance throughout the entire year. The endorsement requires specifying the items of farm personal property, the increased limit, and the exact period(s) during which the higher limit applies. If a loss occurs outside the specified peak period, the standard policy limit for farm personal property would apply. This endorsement is typically used with Coverage E (Scheduled Farm Personal Property) and/or Coverage F (Unscheduled Farm Personal Property) of the farm policy.

Key information for agents and underwriters

For Agents:

• Identify clients with seasonal fluctuations in farm personal property values.
• Clearly explain how the endorsement works, emphasizing the importance of selecting appropriate time periods and increased limits.
• Review the peak season needs annually with the insured, as farming operations and market values can change.

For Underwriters:

• Assess the reasonableness of the requested increased limits and the specified peak periods based on the nature and scale of the farming operation.
• Ensure the underlying farm policy provides coverage for the types of personal property being endorsed for peak season values.
• The premium for this endorsement is typically based on the amount of the increased limit and the duration of the peak period.
• Consider the storage conditions and loss prevention measures in place, especially during peak seasons when values are higher, which could increase the potential severity of a single loss.