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

Farm Property - Farm Dwellings, Appurtenant Structures And Household Personal Property Declarations (FP DS 12)

The FP DS 12, Farm Property - Farm Dwellings, Appurtenant Structures And Household Personal Property Declarations, is a crucial document in farm insurance. It functions as the declarations page specifically for the FP 00 12 - Farm Dwellings, Appurtenant Structures and Household Personal Property Coverage Form. This declarations page personalizes the FP 00 12 coverage form by detailing the specific insured property, coverage limits, chosen deductibles, applicable endorsements, and the named insured(s) for non-commercial farm dwelling-related exposures. It essentially provides a snapshot of the agreed-upon terms and conditions for the residential aspects of a farm policy.

Classes of Business It Applies To

This form is utilized for farms where residential dwelling coverage is a primary component. It's not intended for large commercial agribusiness operations that might have minimal residential exposure or whose primary dwelling is insured under a separate homeowners policy. Real-world examples include:

• Family Farms: Owner-occupied farms where the family resides on the premises and the dwelling, its contents, and related private structures need coverage.
• Farms with Multiple Dwellings: Operations that may have a main farmhouse and potentially other dwellings occupied by family members or resident employees (though employee-occupied dwellings may have specific underwriting considerations).
• Hobby Farms: Smaller-scale farming operations where the residential dwelling is a significant part of the insured property.

The FP 00 12 coverage form, to which this declarations page applies, addresses the farm owner's residential (non-farm business) property exposures, similar to a homeowners policy. It specifically provides:

• Coverage A - Dwelling: For the main dwelling on the farm.
• Coverage B - Other Private Structures Appurtenant to Dwellings: Such as detached garages, sheds used for personal storage (not principally for farming purposes), or guest houses.
• Coverage C - Household Personal Property: Contents of the dwelling owned or used by the insured and resident family members.
• Coverage D - Loss of Use: Covering additional living expenses or fair rental value if the dwelling becomes uninhabitable due to a covered loss.

Special Considerations

Several important factors must be considered when using the FP DS 12 and its associated FP 00 12 coverage form:

• Separation from Farm Operations: It's critical to distinguish between personal/residential property and farm business property. Structures used principally for farming purposes (e.g., barns, silos, dedicated farm workshops) are not covered under Coverage B of FP 00 12 and would need to be insured under a different form, such as FP 00 14 (Barns, Outbuildings and Other Farm Structures Coverage Form). The "use" of a structure is a key determinant for coverage.
• Household Personal Property vs. Farm Personal Property: Coverage C of FP 00 12 is for household personal property. Farm personal property (e.g., tools, equipment, supplies used in farming operations, livestock) needs to be covered under forms like FP 00 13 (Farm Personal Property Coverage Form).
• Valuation: The standard valuation for a dwelling on the FP 00 12 is typically replacement cost, often subject to an 80% insurance-to-value requirement. However, endorsements can change this to Actual Cash Value (ACV). Household personal property is usually valued at ACV unless endorsed for replacement cost.
• Agritainment Exposures: If the farm engages in agritainment activities (e.g., corn mazes, petting zoos, farm tours for which compensation is received), these exposures are generally excluded under standard farm property forms, including the FP 00 12. Specific endorsements would be required to cover property related to such activities.
• Coverage for Trees, Shrubs, Plants, and Lawns: Limited coverage may be provided as an extension under Coverages A, B, and C, but it's typically for specific named perils and has sub-limits. Growing crops are not covered under FP 00 12.
• Drones: Unless a drone meets a very specific "model or hobby aircraft" exception (which is unlikely if used for farm operations), property coverage under FP 00 12 would generally not apply.

Key Information for Agents and Underwriters

Agents and underwriters should pay close attention to the following when working with the FP DS 12:

• Accurate Property Descriptions and Limits: Ensuring the dwelling, appurtenant structures, and personal property are accurately described and valued is crucial for proper insurance-to-value and avoiding underinsurance or overinsurance. The limit shown on the declarations for the dwelling is the maximum payable in a loss.
• Risk Assessment of Dwelling: This includes evaluating construction type, age, condition, wiring, plumbing, heating systems, and any potential hazards (e.g., wood-burning stoves, proximity to farm operations). Deficient electrical systems, for example, can increase fire risk and may impact eligibility.
• Identifying Appurtenant Structures: Clearly identify structures that qualify as "appurtenant" versus those used for farm purposes. A garage used to store seed and farm implements would likely need to be insured under Coverage G (Other Farm Structures) rather than Coverage B. The FP 00 12 provides 10% of the dwelling limit for appurtenant structures, but endorsements can increase this for specific structures.
• Assessing Personal Property: Distinguish household personal property from farm personal property. Inquire about high-value personal items that might require scheduling or specific endorsements.
• Ordinance or Law Coverage: Consider the need for Ordinance or Law coverage, especially for older dwellings, as the FP 00 12 may have limited or no built-in coverage for increased costs due to the enforcement of building codes after a loss. Endorsements are available to add or increase this coverage.
• Deductible Selection: The declarations will specify the deductible(s) applicable to losses under these coverages.
• Endorsements: The FP DS 12 will list all applicable endorsements that modify the FP 00 12. Common endorsements might include those for replacement cost on personal property, increased limits for certain property, or specific peril exclusions/inclusions. For example, endorsement FP 04 02 can add coverage for sump overflow and water backup.
• Underwriting for Specific Perils: Depending on the location, underwriters will assess exposure to perils like windstorm, hail, wildfire, etc. Roof condition is a significant factor, especially for wind/hail coverage.
• Coinsurance: The FP 00 12, similar to homeowners policies, often includes an 80% coinsurance clause for replacement cost settlement on the dwelling. Failure to meet this can result in a penalty at the time of loss.

Thorough completion of the FP DS 12, based on a comprehensive understanding of the insured's residential exposures on the farm and the provisions of the FP 00 12 coverage form, is essential for providing appropriate and adequate coverage.