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Farm Insurance Exam with correct Answers
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Farm Insurance Exam with correct Answers
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Farm Insurance Exam with correctAnswers
Farm Insurance - Answers -Farm: a property where a farmer or rancher both resides
and conducts commercial
business
A farmer needs:
● Homeowners coverage for personal property
● Commercial coverage for business assets
● Farm Insurance, combining both in one policy
A rancher needs all of the above and:
● Additional protection for livestock
Farmers and ranchers are a significant part of the backbone of our economy, raising
and selling crops and livestock to wholesalers, manufacturers, and the general public.
Types Of Farm Insurance - Answers -Types of insurance provided:
● Property insurance for dwelling and contents
● Scheduled and unscheduled farm personal property insurance
● Mobile agricultural machinery and livestock coverage
● Farm liability insurance
Farm policies can include: property insurance for the main dwelling and its contents;
coverage for
scheduled and unscheduled farm personal property (we'll explain what this means in
just a moment); special coverage forms for mobile agricultural
machinery and livestock; and, farm liability insurance.
Eligibility of Farm Insurance - Answers -Eligibility requirement: farmer must live and
conduct business on the insured property.
Properties not eligible:
● Farms that manufacture or process goods
● Farms for raising race or show animals
● Some vacant farm properties
farms that perform manufacturing or processing functions (these must use a commercial
lines policy instead), and those that primarily raise race or
show animals.
Vacant farm properties are also not eligible.
Coverage A - Answers -Coverage A- Dwelling
, ● For main dwelling, attached structures, and necessary materials ● Up to $5,000 for
damaged grave markers
● Not covered: trees, shrubs, plants, or lawns (except with endorsement)
● Coverage extensions:
○ Debris removal
○ Pollution clean-up
○ Reasonable repairs
○ Fire department service charge
○ Consequential loss
Coverage A insures the main dwelling on the farm, as well as all other
structures attached to it. This includes materials located on the premises
that are used in building, repairing, or altering the main dwelling.
Dwelling coverage generally comes with similar coverage extensions found
in a homeowners policy, including debris removal, pollution clean-up,
reasonable repairs, fire department service charges, and consequential
loss coverage.
Coverage A also provides up to $5,000 for damage to grave markers on the insured
premises.
However, Coverage A does not apply to trees, shrubs, plants, or lawns, unless a
separate endorsement is added to the policy. If added, this endorsement provides
named-peril coverage within 250 feet of the main dwelling, usually up to a specified
dollar amount or 5% of Coverage A.
Coverage B - Answers -Coverage B- Other Private Detached Structures:
Covers private structures not attached to main dwelling:
● Detached garages or porches
● Guesthouses
● Patios
● Sheds (unless used for farming purposes)
● Outdoor antennas (up to $1,000 per occurrence)
● Limit: 10% of Coverage A limit
Coverage B is also for residence property. It covers any private structures on the farm
that are not attached to the main dwelling.
This can include detached garages, guesthouses, detached porches or patios, and
storage sheds.
Remember, since this is part of the homeowners coverage of a farm policy, it will not
cover any storage sheds used mainly for farming activities.
As in a typical homeowners policy, Coverage B limits are automatically set at 10% of
Coverage A limits.
For Coverage A and Coverage B, outdoor radio or TV antennae and satellite dishes are
subject to a special $1,000 limit of insurance per occurrence
Coverage C - Answers -Coverage C- Household Personal Property
● Covers theft or damage of personal property
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