1. Forms
2. HO
3. HO-24-72

What the form is

The HO 24 72 Incidental Farming Personal Liability Coverage is an endorsement to a standard Homeowners policy. Its primary purpose is to modify Section II – Liability Coverages (Coverage E – Personal Liability and Coverage F – Medical Payments to Others) to include liability protection for defined, small-scale farming operations undertaken by the insured. Standard homeowners policies typically exclude coverage for business pursuits, including most farming activities. This endorsement carves back that exclusion for the specifically scheduled incidental farming operations.

Classes of business it applies to

This endorsement is designed for individuals or families who engage in minor farming activities, often referred to as 'hobby farming,' where the farming is not their primary source of income. It is suitable for low-exposure agricultural activities. Examples include:

• Maintaining a large personal garden with occasional sale of surplus produce.
• Keeping a small number of livestock (e.g., chickens, goats, a horse) for personal use or enjoyment.
• Tending to a small orchard or vineyard for non-commercial purposes.
• Beekeeping as a hobby.

The key is that these activities are 'incidental' to the primary use of the premises as a residence and do not constitute a full-fledged commercial farming business.

Special considerations

• Scheduling is critical: The specific farming operations and their location(s) (either on the 'residence premises' or at a described location away from the 'residence premises') must be explicitly detailed in the endorsement's schedule. Failure to list a particular farming activity or location could result in no coverage for claims arising from that unscheduled activity or location.
• Not for commercial farms: If farming is the insured’s main occupation or a significant source of income, a more comprehensive Farmowners policy is necessary, not this endorsement.
• Changes in operation: If the nature or scale of the farming activities changes, the policy and this endorsement must be reviewed and updated to ensure continued coverage.
• Limited scope: The coverage provided is for personal liability and medical payments arising from the scheduled incidental farming. It does not typically cover damage to farm equipment, crops, or livestock itself, which might require other endorsements or policies.
• Exclusion modification: The endorsement works by negating certain policy exclusions, such as the 'business' exclusion (typically E.2. in an ISO Homeowners policy), but only as it applies to the described farming operations. It may also modify exclusions related to premises rented to an insured if an off-premises farming location is scheduled.
• Racing exclusion: There is typically no coverage if the specified farming location is used for racing.

Key information for agents and underwriters

• Thorough fact-finding: Agents must diligently gather all details about the insured's farming activities – type, scale, location, any sales, number and type of animals, equipment used, and whether any employees are involved. This is crucial for accurate scheduling and determining eligibility.
• Distinguish from other forms: Understand the difference between HO 24 72 and HO 24 73 (Farmers Personal Liability). HO 24 73 is used when the farming operations (which are still not the insured's primary occupation) occur on farm premises away from the insured residence. HO 24 72 can apply to incidental farming on the residence premises or at a scheduled off-premises location.
• Risk assessment: Underwriters need to assess if the described activities genuinely constitute 'incidental' farming. Red flags for needing a full farm policy include significant income from farming, substantial acreage, large herds of livestock, numerous employees, or complex operations.
• Potential coverage gaps: Advise clients that this endorsement primarily addresses liability. They may need to consider other coverages for property exposures related to their hobby farming, such as for outbuildings used for farming, specialized equipment, or livestock (e.g., via endorsement HO 04 52 Livestock Collision Coverage, which requires HO 24 72 or HO 24 73 to be attached).
• Premium considerations: The premium for this endorsement will vary based on the scope and nature of the scheduled farming activities.