Farms, Livestock, and Mobile Homes

Farm Property Coverages A Through G

A standard Farmowners policy combines residential personal lines coverage with commercial agricultural property and liability coverage in one package. Standard homeowners policies do not generally provide the property and liability coverage needed for commercial farming; farmers may use a farm policy, separate farm coverages, or applicable endorsements. Farm property coverage may be written in a farm policy or, when available, as part of a Commercial Package Policy. Insurers use standard Insurance Services Office (ISO) forms as a national reference, though insurers may use their own forms and endorsements.

The residential section of a farm policy uses letter designations similar to standard homeowners forms. Coverage A insures a dwelling listed in the farm policy; depending on the policy, it may be occupied by the insured or rented to someone else. Coverage B provides insurance for other private structures appurtenant to the farm dwelling, such as a detached personal garage. Coverage C covers household personal property belonging to the insured and family members residing in the dwelling. Coverage D covers loss of use, including additional living expenses and fair rental value for the residential farm dwelling.

Commercial agricultural property is insured under Coverages E, F, and G. Coverage E provides scheduled farm personal property coverage for specifically listed items, requiring them to be listed with a specific limit of insurance assigned to each class or individual item. This covers named machinery, grain, and livestock. Coverage F provides unscheduled coverage for eligible farm personal property under a blanket limit for items such as feed, tools, and farm equipment without specific itemization. Coverage away from the insured premises depends on the policy terms. Coverage F commonly has a coinsurance condition, meaning you must check the declarations and form for the required percentage. Farm grain stored in commercial elevators or public warehouses is typically excluded from basic on-premises farm personal property coverage. Coverage G insures eligible farm structures other than dwellings and private structures, such as barns and silos, while coverage for fences depends on the form.

Consider a farmer who owns a house, a detached two-car family garage, a combine, tools, and a dairy barn. The house falls under Coverage A, the family garage under Coverage B, the combine under Coverage E if specifically scheduled, the miscellaneous hand tools under Coverage F, and the dairy barn under Coverage G.