Farm Owner Package Policy (FO) | Return to Underwriting Guidelines

• The Farmowners 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.
  
• The agent has no binding authority on risks with Property or Liability claims over $2,500. each within the last three years. The Application must be submitted to your underwriter for approval. Please submit loss information from the prior carrier.
  
• The agent has no binding authority on risks cancelled by another company for underwriting reasons, claims frequency or non payment of premium. Please contact your underwriter prior to submitting application.
  
• The farm must be owner-occupied and operational. See Farmowner deviation section.
  
• 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.
  
• BUILDING HOUSEKEEPING: Dwelling and surrounding areas must be kept free of debris, trash and other attractive nuisances.
  
• ELECTRICAL: All units must have proper electrical systems. If a fused system, proper amperage fuses must be used. Electrical services must be approved by a licensed electrician or building (code enforcer) inspector.
  
• HEATING: Central heat is required. The following are not acceptable as a main heating source - Woodburning Stoves, Fireplaces, Kerosene heaters or any type of portable heater. Kerosene heaters are forbidden, even as a supplemental heat source. All chimneys utilized for solid fuel (wood, coal) systems must be lined.
  
• ROOFS: The roof should be in good condition. Please note any areas in poor condition.
  

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• SMOKE DETECTORS: They must be operational in all units and hallways. Batteries should be checked and replaced periodically. Fire extinguishers are recommended.
  
• ML-3 FORM CRITERIA:  The plumbing, heating, electrical installation, water heater, roof and chimney must have been updated in accordance with the Acknowledgement Form (ACK 7/93).  The dwelling must  be occupied. The Company reserves the right to deny ML-3 coverage based on information received on the Acknowledgement form, photos, application or inspection report.
  
• REPLACEMENT COST RATINGis not available for dwellings over 40 years, unless they meet Company Guidelines.  An Acknowledgement Form must be completed, with an accurate Replacement Cost estimator.  The Company reserves the right to deny Replacement Cost Rating, based on information received on the Acknowledgement Form, photos, application or inspection report.  Below-average dwellings are not acceptable. Dwellings under renovation are not acceptable. Interior and exterior must show no signs of deterioration or lack of maintenance. The plumbing, heating and electrical installation must have been updated within the last 20 years. The apartments must be occupied.
  
• COVERAGE B - RELATED PRIVATE STRUCTURES: There is no coverage for Coverage B, Related Private Structures on the Farmowners policy. Any Related Private Structure may be insured under Coverage F, Farm Buildings.
  
• Mobilehomes are acceptable as Coverage A on the Farmowners Policy. To rate, use the Mobilehomeowners Manual rates, with a $85.00 FCPL charge added to the basic rates.
  
• A customer with more than three (3) milk contamination claims will not be accepted. A policyholder with three (3) milk contamination claims will be non-renewed.
  
• 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.
  
• Dwellings with Day-care or Foster child services are not acceptable.
  
• Policyholders residing in rented farm dwellings may obtain a policy which provides the protection of "Broad form coverages of form ML-4. This form is similar to the coverages found in form ML-2, with the exception of Coverage A, Dwelling.
  
• Risks with unusual recreational activities involving horses or recreational vehicles are generally not acceptable.
  
• Any risk with a prior claim involving a dangerous or uncontrolled animal will not be accepted.
  
• Chimneys must be constructed or maintained as follows:
  
  1. Built from the ground.
  2. Loose brick work or loose mortar must be repaired.
  3. Wood stove or fireplace chimneys must be flue-lined.
     
• Homes with improperly installed or vented supplementary heating devices, stoves or fireplaces are not acceptable, unless the owner is willing to correct the hazards within a specified time period as stated by the Company.
  
• Trampolines or any other dangerous outdoor play equipment are not acceptable.
  
• If the risk is otherwise acceptable, we will give the policyholder the opportunity to remove the item, with a reinspection immediately following.

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