Farm Insurance has many moving parts. We will break those parts down into bite-size chunks for you to consume. Today, the topic of exclusions for the loss forms will be discussed. We’ll show you what is NOT covered, or is excluded, from the three different forms of loss for Farm Insurance. It’s just as important to know what’s NOT covered, than what is! 

EXCLUSIONS (THINGS THAT ARE NOT COVERED) FOR THE BASIC, BROAD, AND SPECIAL LOSS FORMS 

1. Ordinance or law- Ordinance or law regulating the construction, use or repair of any property or demolition of any property, including the cos of removing debris.
2. Earth Movement- Includes earthquakes, landslides, mine subsidence, or earth sinking, rising, or shifting.  However, if loss or damaged by fire or explosion results, the insurance company will pay for the damage/loss

Exceptions: 

1. Earthquake loss to livestock
2. Special Cause of Loss Form covers earthquake loss of farm machinery, vehicles, and equipment.
3. If loss or damaged by fire or volcanic action results, the insurance company will pay for that resulting damage/loss.
4. Government Action- Seizure or destruction of property by order of governmental authority, unless the action is taken at the time of a fire to prevent its spread, if the fire would have been a covered cause of loss.
5. Intentional Loss- The insurance company will not pay for any loss or damage arising out of any act committed by or at the direction of any insured with the intent to cause a loss.
6. Nuclear Hazard- Including nuclear reaction, radiation, or radioactive contamination, however, caused.
7. Services that are off-premises- Failure or power or other utility services that occurs away from the location.

Exceptions:

1. Coverage is provided by the coverage extension- refrigerated products. 
2. War and military action- This includes undeclared or civil war, warlike action by a military force, including action in hindering or defending against an actual/expected attack.
3. Water – Loss or damage caused by:

• • Flood, surface water, waves, tides, tidal waves, overflow of any body of water, all whether driven by wind or not;
  • Mudslide or mudflow
  • Water that backs up from a sewer or drains
  • Water under the ground surface pressing on, or flowing or seeping through foundations, walls, floors, paved surfaces, basements, doors, windows, or other openings.

Exceptions:

1. If loss or damaged by fire, explosion or sprinkler leakage results, the insurance company will pay for that resulting damage/loss
2. Flood loss to livestock
3. Special Causes of Loss form covers flood loss of farm machinery, vehicles, and equipment. 

Special Forms of Loss Exclusions

1. If damage from an open fire used for curing or drying tobacco in the barn or building where this occurs, the loss will not be covered if:

• • While the tobacco is being fired
  • Within a 5 day period following tobacco firing

2. Collapse (unless provided for in additional coverage or collapse results from a covered cause)
3. Windstorms or Hail

• • Dairy or farm products in the open
  • Watercraft and all its accessories unless it’s in a fully enclosed building.

4. Snow, Ice, sleet, or rain that damages property in the open
5. Sand, dust, rain, snow, or sleet damage to the interior of any building or structure, unless there’s other damage that causes a hole and any of these items then cause damage due to the hole.
6. Thawing, freezing, pressure/weight of water or ice to any retaining wall, retaining wall, fence, pool, dock, pier, wharf, bulkhead, patio, or pavement
7. Discharge or overflow of water/steam from plumbing, heating, A/C, or automatic fire sprinkler system; or from household appliances:

• • If there is a continuous/repeated seepage of water/steam over a period of weeks, months, or years
  • Caused by or resulting from freezing in a building or structure that’s vacant, under construction, or unoccupied for 60+days, unless there’s been steps taken to prevent freezing by maintaining heat or shutting off water and draining pipes
  • If system or appliance is defective
  • If the discharge of water/steam takes place off-premises but affects the property that is insured

8. Explosion damage from alcohol stills, steam pipes, steam boilers, or steam engines that are owned, leased, or operated by the insured person.
9. If any of the following is lost due to theft: trailers, campers, watercraft, accessories and equipment.
10. Shortage of inventory
11. If any farm personal property or portable structure disappears, it is not covered, unless there’s evidence of theft.
12. Voluntarily parting with property due to trickery or fraud.
13. Unauthorized instructions to transfer property to a person or place.
14. Vandalism or breakage of glass or safety grazing material if the building or structure was vacant for more than 60 consecutive days immediately before the loss.
15. Criminal or dishonest acts committed by an insured, any partner, employee, director, trustee, authorized rep, or anyone the insured has entrusted property to, regardless of whether acting alone or in collusion with others.
16. Electrical Current- Damage/loss caused by artificially generated electrical current, inc. electrical arcing that disturbs any electrical device, wires, or appliances.

• • Exception here is if the damage/loss results in a fire- it’s covered.

17. Vapor, smoke, or gas- If any loss occurs to a building, personal property, or structure due to agricultural smudge or industrial ops.
18. Non-accidental Losses:

• • rust
  • corrosion
  • fungus
  • decay
  • wear and tear
  • deterioration
  • hidden or latent defects
  • damage is due to the quality of the property itself.

17. Damage or Loss to structures, personal property, or buildings caused by any of the following:

• • Dampness or dryness of the atmosphere
  • Mechanical breakdown- inc. bursting by centrifugal force
  • Marring or scratching
  • Smog
  • Settling, cracking, shrinking, or expansion
  • Vermin, birds, rodents, domestic animals, or insects

20. Damage or loss to property on OR off the insured premises that is cause by:

• Pollutants- the discharge, dispersal, seepage, migration, release, or escape of
  • EXCEPTION: if any of the above is caused by a specified cause of loss, the insurance company will pay for any damage caused by a specified covered cause
• Weather conditions applicable only if weather conditions contribute to loss or damage caused by or resulting from  the discharge, dispersal, seepage, migration, release, or escape of pollutants
• Acts/decisions- or the failure to do either
• Inadequate, faulty or defective:
  • Zoning, planning, development, siting, or surveying
  • Materials used in repair, renovation, remodeling, or construction
  • Maintenance
  • Design, specifications, workmanship, construction, repair, renovation, remodeling, compaction, or grading

As you may understand, knowing what is excluded from your coverage, is as important as knowing what’s covered! 

Our team of experts is waiting to help you put together a customized insurance plan that is right for you and your needs! Just a click away.

Graybeal Group, Inc. Offers A Wide Range of Products and Pricing

Graybeal Group Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523.

At Graybeal Group Inc. one of our missions is to make sure our clients and prospects are educated on the type of insurance they have/may need. Farm Insurance may confuse some, as they are seven different types of coverage, additional coverage, payouts for losses, etc. In this blog, we are going to discuss the different ways insurance companies will reimburse the insured for their loss, depending on the type of coverage they purchased. 

OREGON FARM INSURANCE- COVERAGE A (DWELLING) AND COVERAGE B (OTHER PRIVATE STRUCTURES)- HOW IS A LOSS REIMBURSED/COVERED?

 Loss is reimbursed by the Replacement Cost – The cost to replace a damaged/destroyed item of property, without deducting for any depreciation. This is subject to an 80% coinsurance clause when it pertains to partial losses. A coinsurance clause is: the insurance company will pay the FULL amount on a PARTIAL loss up to the limit of insurance carried, if the insured carries the percentage required of coinsurance. If the insurance company requires an 80% coinsurance be carried, that means that the insured is carrying insurance on the value of 80% of the property. If the required percentage is maintained, then, in the event of a partial loss, the insurance company will reimburse the loss completely. If there is a total loss, the insurance company will cover up to the percentage carried (if the stated required % is carried) and the insured is responsible for the remainder of the expense to replace. The insurance company will pay the least amount of: 

1. Cost to replace the damaged part of the structure with an equal amount of construction for use on the same property. 
2. Up to the applicable limit of insurance. 
3. Actual amount spent to repair or replace the structure. 

OREGON FARM INSURANCE COVERAGE C (HOUSEHOLD PERSONAL PROPERTY)- HOW IS THIS LOSS REIMBURSED? 

Coverage C is replaced on the premise of Actual Cash Value. Actual cash value is the value of the property MINUS the depreciation cost.  That equation equals how much the insurance company will reimburse the insured. 

OREGON FARM INSURANCE COVERAGE E (SCHEDULED PROPERTY) AND COVERAGE F (UNSCHEDULED PROPERTY) – HOW ARE THESE LOSSES REIMBURSED? 

The amount that it costs to repair or replace using the Actual Cash Value method. However, the insured is required to carry and maintain insurance that’s at least 80% of the cash value on unscheduled  personal property.  If the insured carries less than the required amount, the insurance company imposes a penalty at the time of loss, by not paying for more than what is covered, divided by required amount, times the loss. 

OREGON FARM INSURANCE COVERAGE G (OTHER FARM STRUCTURES)- HOW IS COVERAGE G REIMBURSED AFTER A LOSS? 

The insured (at time of implementing policy with insurance company) may choose to select either Actual Cash Value or Replacement Cost as their method of reimbursement. If they’ve chosen replacement cost, they must carry coinsurance.  In both cases, the amount will not exceed the actual amount necessary to repair or replace the damage, up to the applicable limit of insurance.

BASIC CAUSE OF LOSS FORM- WHAT DOES THIS COVER? 

If an insured chooses the Basic Form for their Cause of Loss form, the following are covered losses: 

• Fire
• Lightning
• Windstorm
• Hail
• Aircraft or vehicle (not driven or piloted by the insured)
• Civil commotion or riot
• Volcanic Action (occurs within a 168 hour period, it’s considered one single event)
• Explosion
• Smoke (not from agricultural smudge or industrial operations)
• Vandalism
• Theft
• Sinkhole collapse (that results in damaged property)
• Collision (damage or loss to farm personal property, covered farm machinery, or death of covered livestock)
• Earthquake and flood loss to covered livestock

BROAD FORM OF LOSS- WHAT DOES THIS COVER? 

If an insured chooses the Broad Form of Loss form, the following are covered losses: 

• Everything included above in the Basic Form
• Falling objects (covers damage from the falling object- not the actual object though)

Falling object does not cover: Personal property in the open or the interior of a building or structure, or property inside the building or structure unless the falling object first damages building or structure

• Weight of ice, snow, or sleet that causes damage to a building or property inside the building

Weight of ice, snow, or sleet does not cover: Damage or loss caused by pressure or weight of water in any form to any foundation or retaining wall, pavement or patio, awning, fence, outdoor equipment, swimming pool, bulkhead, dock, pier, or wharf.

• Accidental discharge or leakage of water or steam if results in cracking or breaking of any part of the system or appliance containing the water or steam. Pays for damage to covered personal property. 
• Freezing of plumbing, A/C, automatic fire sprinkler system, heating, or household appliances. (Exception: not applicable to building/structure that’s been vacant or unoccupied for 60+ days unless there’s been steps taken to prevent freezing- such as maintain heat, shut off water, drain appliances, etc)
• Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an A/C or automatic fire sprinkler system, or an appliance for heating water. 
• Glass breakage or safety glazing material- includes glass that is part of building/structure, storm door/window
• Electrocution of covered livestock
• Sudden and accidental damage from artificially generated electrical current (Only to Coverage A,B,C,D)
• Attacks on covered livestock – Only by wild dogs/wild animals NOT owned by insured, employees, or any residents of insured location
• Drowning of covered livestock (Doesn’t include swine drowning that are under 30 days old)
• Accidental shooting of covered livestock- Not done by an insured, staff, or other residents of insured location
• Loading or unloading of covered livestock that results in the death of livestock

Stay tuned for Special Cause of Loss Form and what it covers. Also, we’ll discuss the Exclusions for all three of these forms.

We have a team of advisers waiting to answer your questions and help you choose the best coverage for you and your livelihood.

For more information about how Graybeal Group Inc. can help with your farm insurance needs, click here!

Graybeal Group, Inc. Offers A Wide Range of Products and Pricing

Graybeal Group Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523.

There are seven different forms of farm property coverage. Our goal at Graybeal Group Inc. is for you to fully understand you farm insurance policy, as well as understanding the additional types of farm insurance coverage we provide! The first form is, Coverage A for Dwellings

WHAT DOES OREGON DWELLING FARM INSURANCE COVER? 

Coverage A for Dwelling covers direct physical loss to the property. Coverage A covers each dwelling, any structures attached to the dwelling, and any materials onsite (at the location that’s insured) that are intended to use to alter, repair, or build upon any of the covered dwellings or their attachments. Also, any building or outdoor equipment that’s used for service of the covered property that’s not covered by other insurance, would be covered under Coverage A- Dwelling. 

Another part of Coverage A includes coverage for outdoor TV antennas, outdoor radio, and/or satellite dishes.  Coverage A covers these items up to $250 unless otherwise noted in the policy. 

THE SECOND OREGON FARM INSURANCE FORM IS CALLED COVERAGE B- OTHER PRIVATE STRUCTURES APPURTENANT TO THE DWELLING. 

This means, to qualify, the structure has to be separated from the dwelling with a clear space defining it.  If you are  using a structure as a private garage, this coverage will supply an additional amount of insurance equal to 10% of Coverage A amount you have listed in the policy for Dwelling.

The Special Limit of Insurance for antennas and satellite dishes applies to Coverage B as well ($250). 

WHAT DOES OREGON FARM INSURANCE- COVERAGE C- HOUSEHOLD PERSONAL PROPERTY COVER? 

Coverage C covers the household property of the insured, those who reside there (members of insured’s family), or for those staying/residing on a covered dwelling on the insured’s property. This coverage will also cover household property away from the insured’s premises, however, the limit of liability is 10% of total Coverage C amount, or $1000, whichever is more. If the insured is a tenant and they make improvements such as alterations or building additions that they use exclusively, then again, the amount of coverage is 10% of Coverage C’s total limit of liability. 

There are some Exclusions and Special Limits of Insurance that apply to Household Personal Property Coverage. Let’s discuss Exclusions first, then we will look at Special Limits. 

EXCLUSIONS TO OR COVERAGE C- HOUSEHOLD PROPERTY: 

1. Articles specifically described and specifically covered under this or any other insurance. 
2. Trees shrubs, and plants (unless covered under an extension).
3. Birds, Fish, Animals
4. Business Personal Property (except for those items covered under Special Limits).
5. Magnetic Recording or storage media for electronic data processing, except that which are purchased prepackaged software programs.
6. Any device for transmitting, recording, receiving, or reproducing sound/pictures, unless specifically described/covered in the policy.
7. Farm personal property, other than office fixtures, office equipment, or furniture.
8. Motor vehicles designed for road use that are required to be licensed, unless being used to assist the handicapped or used to service the insured’s grounds, dwellings, etc.

SPECIAL LIMITS OF INSURANCE FOR COVERAGE C:

Specific items/categories of household personal property have special limits that are a part of this policy. They are subject to any applicable deductible.  These limits are the MOST the insurer will pay for any damage to property in the category per occurrence: 

1. Platinum, silver (other than silverware), gold (other than goldware), and money – Limit is $200 per occurrence
2. Letters of credit, passports, securities, and manuscripts- Limit is $1500
3. Furnishings, engines or motors, trailers, watercraft (inc equipment) – Limit is $1500
4. Trailers not used for farming operations or with watercraft – Limit is $1500
5. Gravemarkers – Limit is $1000
6. Business Personal Property on the insured location – Limit is $2500
7. Business Personal Property away from the insured location – Limit is $500

THERE IS PROPERTY THAT IS ALSO SUBJECT TO SPECIAL LIMITS DUE TO THEFT: 

1. Jewelry, furs, precious and semiprecious stones, and watches – Limit is $1500
2. Goldware, silverware, pewterware, and other items made of or containing gold, pewter, or silver – Limit is $2500
3. Firearms- Limit is $2500.

WHAT DOES OREGON FARM INSURANCE COVERAGE D – LOSS OF USE – MEAN AND WHAT DOES IT COVER?

What does this mean and what does it cover? This blog is dedicated to educating our clients and prospects on the different types of farm insurance coverage options.

Today we are talking about Coverage D- Loss of Use. Loss of Use refers to your residence becoming uninhabitable due to a covered loss.  This coverage states that the insurer will reimburse you for the necessary increase in living expenses to maintain your normal standard of living during the time it takes to repair or replace any damage, or to permanently relocate. 

Also, this coverage provides for Fair Rental Value. Fair Rental Value will reimburse you for rent lost if your residence is rented to a tenant. 

These payments, Fair Rental Value and Additional Living Expense will be paid for the shortest time possible that it takes to repair/replace damage or to permanently relocate.  There is no deductible for this coverage. 

If civil authority prevents access to your residence due to a covered loss that occurred on a neighboring property, the insurer will provide the above benefits to you for up to two weeks. 

We understand with all of these coverage choices, things can get confusing as to which is the best coverage options for your unique situation. At Graybeal Group Inc., we have a team of experts that are ready to help you with all of your questions and to make sure you choose the right coverage for you! 

WHAT DOES OREGON FARM INSURANCE COVERAGE E- SCHEDULED PROPERTY MEAN AND WHAT DOES IT COVER? 

Scheduled Property is property that is listed in the Declarations Page of your policy. Declaration page is the page that lists who is insured, what is insured, the provided coverages, and their associated premiums. 

Examples of some things that could be considered for scheduled property coverage are: 

Completed crops (not growing ones), grain in a silo, threshed seeds, beans, hay, straw, ground feed, poultry, livestock, bees, fish, worms, and other animals, machinery, vehicles, and equipment used for farming only. 

Covered property for Coverage E does not include: 

Growing crops, trees, shrubs, plants, or lawns; household personal property or property usual to a dwelling; any permanent fixtures within or attached to a building; or outdoor radio or TV equipment, wiring, and private power and light poles.

WHAT DOES OREGON FARM INSURANCE COVERAGE F- UNSCHEDULED PROPERTY MEAN AND WHAT DOES IT COVER? 

Coverage F- Unscheduled Property covers property (personal) on a blanket basis, that are not specifically scheduled as they are in Coverage E. If covered under Coverage F, items are covered while on or away from the insured’s premises/location. However, if the property is in the care of others, coverage is excluded. An example of this would be a seed warehouse. Property would be covered, however, during transportation by the insured or their employee. 

Some examples of items Coverage F may provide coverage for are: 

Equipment, tools, livestock, and some specified completed crops (up to limits of insurance shown on the Declaration Page). 

Livestock that are not specifically scheduled (Coverage E), may be covered here on a blanket basis subject to limits of insurance. These special limits are part of the Limit of Insurance (total limit) shown in the Declarations for livestock.  To be able to claim a loss on livestock, there must be death or destruction of livestock from a covered cause of loss. Just remember, the insurer will limit the amount of coverage under this option (F).

Some examples of items not covered by Coverage F are: 

Household or personal property; animals other than livestock (poultry, bees, fish, worms); racehorses, show horses or ponies; trees, shrubs, plants, lawns; tobacco, cotton, vegetables, root crops, potatoes, bulbs, fruit, or nursery stock; fences, windmills, or windchargers (and their towers); outdoor radio and TV equipment; and portable buildings or portable structures.

WHAT DOES OREGON FARM INSURANCE COVERAGE G – OTHER FARM STRUCTURES COVER?

The following are examples of what other farm structures may include for Coverage G:

Silos that are individually described; farm buildings and structures including attached sheds and permanent fixtures; portable buildings and structures; fences (not field or pasture), corrals, pens, chutes, and feed racks; outdoor radio and TV equipment, antennas, mast, and towers; building materials and supplies in building, altering, or repairing of farm buildings or structures at insured location; and if a tenant, improvements may be covered as well. 

There are Coverage Extensions to Other Farm Structures. Coverage extensions  are additional coverages that apply only in certain circumstances.  They have reduced or separate limits of liability or require the insured to meet certain requirements before they are applicable.

COVERAGE EXTENSIONS FOR COVERAGE G- OTHER FARM STRUCTURES

1. New Construction: If there is a direct physical loss or damage to new farm structures, including supplies and materials (used in building), this coverage extends up to $100K. 

Conditions for this Extension:

1. Structures that are not otherwise covered under this or any other policy
2. Loss caused by fire, lightning, windstorm, or hail, aircraft or vehicle not driven by insured, civil commotion or riot, smoke, and vandalism. 
3. Coverage for this extension ends when one of the following happens (whichever happens first): 
4. 60 days have passed since the first date for delivery of material and supplies
5. The policy expires
6. The insured reports the values to their insurer. 
7. Private Power and Light Poles: Insurer will pay up to $250.00 for direct physical damage or loss, including outside wiring and attachments. Attahcments include attached switch boxes, fuse boxes, and other electrical equipment mounted on poles owned by the insured at the insured location.  

PROPERTY NOT COVERED UNDER OREGON FARM INSURANCE COVERAGE G- OTHER FARM STRUCTURES

Land, including land on which the structure is located; water; field or pasture fences; foundations (if below ground); pilings, piers, docks, or wharves; and expense due to excavation, filing, grading, filling, or backfilling. 

Let our experts that live and work where you do, help with your questions, and assist you in finding the right coverage that suits your individual needs. Farm Insurance can be tricky with all the pieces and parts, we are here to help! 

For more on how we can help your farm insurance needs, click here!

Graybeal Group, Inc. Offers A Wide Range of Products and Pricing

Graybeal Group Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523.