1. Forms
2. HO
3. HO-04-52

What the form is

The HO 04 52 Livestock Collision Coverage endorsement is an optional addition to a homeowners insurance policy. Its purpose is to provide financial protection to the insured if their livestock dies as a direct result of a collision with a vehicle or due to the overturn of a vehicle transporting the livestock.

Classes of business it applies to

This endorsement is specifically designed for individuals who own livestock primarily for hobby or personal use, rather than for commercial farming operations. It is suitable for homeowners who have a small number of animals on their residence premises.

Real-world example: A homeowner who keeps a few goats for personal enjoyment and milk production could add this endorsement to their policy. If one of their goats wanders onto a public road and is struck and killed by a car, this endorsement would provide coverage for the loss of the animal, up to the specified limit.

Special considerations

• Covered Animals: The endorsement typically specifies the types of livestock eligible for coverage, such as cattle, sheep, swine, goats, horses, mules, and donkeys.
• Limit per Animal: There is usually a maximum amount payable for any one head of livestock, for instance, $400.
• No Deductible: Often, no deductible applies to this specific coverage.
• Exclusions: A key exclusion is that coverage typically does not apply if the livestock is struck by a vehicle operated by an insured or an employee of an insured.
• Hobby Farming: This endorsement is intended for incidental farming activities, not for primary farming businesses. Insurers may have guidelines regarding the scale of the livestock operation to qualify for this endorsement.

Real-world example: If an insured's horse is being transported in a trailer and the trailer overturns due to a traffic accident caused by another driver, leading to the horse's death, this endorsement would likely provide coverage. However, if the insured was driving the vehicle that collided with their own livestock on their property, the loss would likely be excluded.

Key information for agents and underwriters

• Risk Assessment: Underwriters should assess the number and type of livestock, the fencing and containment measures on the property, and the proximity to roadways.
• Pricing: The premium for this endorsement is generally modest, reflecting the limited scope of coverage and the typical per-animal limit.
• Coverage Gaps: This endorsement only covers death due to collision or overturn. It does not cover death from other causes like illness, disease, or attacks by predators. Agents should explain these limitations to clients.
• Eligibility: Confirm that the insured's livestock activities are truly incidental and not a commercial operation, as commercial farming exposures typically require a separate farm policy. This endorsement can generally be added to most standard homeowners forms (e.g., HO 00 02, HO 00 03, HO 00 05) but may not be available with all form types (e.g., HO 00 14).
• Edition Dates: Be aware of different edition dates (e.g., 05 11, 03 22) as policy language can vary. The latest ISO version is generally 03 22.