Farmowner Package Policy (FO)

Underwriting Guidelines - Farm Owner Package Policy (FO)

The Farmowner Policy is designed to provide coverage for the operating farm risk. It should be owner occupied, with maintenance and housekeeping being average to above average. The following guidelines are designed to assist the agent in determining risk acceptability.f the policy does not fit these guidelines, it may fit another type of policy. Please consult with your underwriter if you have questions.

*** ALL DWELLINGS WILL BE REVIEWED PRIOR TO RENEWAL ***

FOR ELIGIBILITY BASED ON THESE GUIDELINES

1. The agent has no binding authority on risks with Property or Liability claims within the last five years.

i. Please submit loss information from the prior carrier. Please consult with the Company to determine if limited coverage is available in these circumstances.

2. The agent has no binding authority on risks cancelled by another company for underwriting reasons, nonpayment of premium or claims frequency. Please consult with the Company to determine if limited coverage is available in these circumstances.

3. The farm must be owner occupied and operational.

4. Rehabilitation Projects are not acceptable, until work is completed. It may be written on a Dwelling Fire policy at limited coverages, with acceptable supporting business. Please submit to your underwriter for approval.

If the risk has any of the problems listed in items #5-#11, the risk is not eligible for coverage.

5. BUILDING MAINTENANCE: The building must be kept up to date. Plumbing, heating, and electrical installations must be up to code. There must be no water stains or loose plaster on ceilings or walls; floor coverings must not be ripped; light fixtures must be installed properly; hallways must be well lit; sidewalks must be even and free of ice and snow when applicable; porches & steps must have railings; steps must be even; no holes in floorboards.

6. BUILDING HOUSEKEEPING: Dwelling, barns and surrounding areas must be kept free of debris, trash and other attractive nuisances.

7. ELECTRICAL: All units must have proper electrical systems. A minimum of 150-amp service is required with proof of wiring updates. Electrical services must be approved by a licensed electrician or building (code enforcer) inspector.

8. HEATING: In order to be eligible for forms ML-1R, ML-2 or ML-3B, there must be central heat. Woodburning Stoves, pellet stoves, fireplaces or any other type of portable heaters are NOT ACCEPTABLE as the main source of heat. Kerosene heaters are not acceptable under any condition. Wood or coal furnaces must have lined chimneys. Chimneys must be constructed or maintained as follows:
I. Built from the ground.
II. Loose brickwork or loose mortar must be repaired.
III. Wood stove or fireplace chimneys must be flue lined.

9. ROOFS: In order to be eligible for forms ML-1R, ML-2 or ML-3 the roof should be in good condition and be less than 20 years old. Please note any areas in poor condition that you would like excluded from coverage.

10. ML 3 FORM: The plumbing, heating, electrical installation, water heater, roof and chimney must have been updated within the last 20 years or in accordance with guidelines in effect at the time of policy issuance or renewal. This information must be listed on the application or renewal update form. Failure to submit required underwriting information could result in a cancellation being issued. A dwelling with a flat roof is eligible for forms ML-1R or ML-2 only. The Company reserves the right to deny ML-3 or Replacement cost rating coverage based on information received on the application or inspection report.

11. REPLACEMENT COST RATING is not available for dwellings over 40 years, unless the risk meets Company Guidelines. The plumbing, heating, electrical installation, water heater, roof and chimney must have been updated within the last 20 years or in accordance with industry standards or Company guidelines in effect at the time of policy issuance or renewal. This information must be listed on the application or renewal update form. Failure to submit required underwriting information could result in a cancellation being issued. The Company reserves the right to deny ML-3 or Replacement cost rating coverage based on information received on the application or inspection report. An accurate Replacement Cost estimator must be on file.

12. SMOKE DETECTORS & CARBON MONOXIDE DETECTORS: They must be operational in all units and hallways. Batteries should be checked and replaced periodically. Fire extinguishers are recommended.
13. There must be two exits for every unit above the ground floor.

14. BUSINESS ACTIVITY: There is no coverage for incidental business exposures, without Company approval prior to binding. Day care services in the dwelling by the owner of the building, tenant or any other resident ARE NOT PERMITTED.

15. Above-ground pools must have proper gates and locks. In-ground swimming pools must be fenced.

16. Any risk with a prior claim or cancellation involving a dangerous or uncontrolled animal will not be accepted.

17. Risks with aggressive animals on premises are not acceptable, whether the animal belongs to the insured, tenant or temporary resident.

18. Mobilehomes are acceptable as Coverage A on the Farmowners Policy. To rate, use the Mobilehomeowners Manual rates, with an $85.00 FCPL charge added to the basic rates.

19. A policyholder with milk contamination claims in excess of $2,500. will be non-renewed.

20. Farm buildings must be in good condition. Any building with loose or missing clapboards, poor roofs or other conditions constituting poor maintenance or housekeeping should not be written. RELATED PRIVATE STRUCTURES: There is no coverage on the Farmowner Policy for Coverage B, Related Private Structure. Any qualifying related private structure may be insured under Coverage F, Farm Buildings. The garage or shed must be in good condition. It cannot be in danger of collapse or have a poor or unacceptable roof. Identify all buildings that are located on the premises.

21. BUSINESS ACTIVITY: There is no coverage for incidental business exposures without Company approval prior to binding. Day care services in the dwelling by the owner of the building, tenant or any other resident ARE NOT PERMITTED.

22. Policyholders residing in rented farm dwellings may obtain a policy which provides the protection for their personal property and liability under form ML-4.” This form is similar to the coverages found in form ML 2, with the exception of Coverage A, Dwelling.

23. Risks with unusual recreational activities involving horses or recreational vehicles are generally not acceptable. Risks with more than four horses are not acceptable. Risks with commercial exposures on premises are not acceptable.

Return to Underwriting Guidelines Revised 09/2012