PROPERTY COVERAGE (RESIDENCE AND FARM)

Transcription

1 THIS IS A LEGAL CONTRACT FP-1 - PLEASE READ IT CAREFULLY - (Ed. 1-09) PROPERTY COVERAGE (RESIDENCE AND FARM) The following Table of Contents shows how this Property Coverage is organized. It will help you locate particular sections of this form. TABLE OF CONTENTS Page Agreement... 1 Definitions... 2 Principal Property Coverages Coverage A Residence... 2 Coverage C Personal Property... 3 Coverage D Additional Living Costs and Loss of Rent Coverage E Scheduled Farm Personal Property Coverage F Unscheduled Farm Personal Property Coverage G Farm Barns, Buildings, and Structures... 7 Incidental Property Coverages Perils Insured Against Limited Perils Basic Perils Broad Perils Special Form Exclusions That Apply To Property Coverages What You Must Do in Case of Loss or Claim How Much We Pay For Loss or Claim Payment of Loss or Claim Policy Conditions Certain state governments require various policy modifications. Any endorsement required by the state in which this policy is applicable is a part of this policy. Other endorsements that modify the terms of this policy are also a part of this policy. They are identified on the declarations. Refer to the Definitions for words and phrases that have special meaning. These words and phrases are shown in quotation marks. AGREEMENT This form, subject to all of its terms, provides insurance against loss to property and other described coverages during the policy period. In return you must pay the required premium. Each of the Principal Coverages described in this policy applies only if a limit is shown on the declarations for that coverage. This form describes, in the Perils Insured Against section, 4 levels of coverage LIMITED, BASIC, BROAD, and SPECIAL. The level of coverage that applies to each item listed on the declarations will be shown opposite the item. All of the perils listed in this form may not apply to your policy. FP-1 (Ed. 1-09) (CF-1643) Page 1 of 21

2 DEFINITIONS 1. The words you and your mean the person or persons named as the insured on the declarations. This includes your spouse if a resident of your household. 2. The words we, us, and our mean the company providing this insurance. 3. Business means a trade, a profession, or an occupation including farming, all whether full or part time. This includes the rental of property to others. It does not include the occasional rental for residential purposes of the part of the insured premises normally occupied solely by your household. Business includes services regularly provided by an insured for the care of others and for which an insured is compensated. 4. Insured means: a. you ; b. your relatives if residents of your household; and c. persons under the age of 21 residing in your household and in your care or in the care of your resident relatives. 5 Insured premises means: a. the premises described on the declarations; b. other land you use for farming; and c. new farm premises acquired or leased during the policy period. 6. Limit means the amount of coverage that applies. 7. Livestock means cattle, sheep, swine, goats, horses, mules, donkeys and hybrids thereof. 8. Non-Farm Vehicles means: a. automobiles, trucks, and vehicles designed and licensed for road use, other than farm wagons and farm trailers; b. motorcycles, motorized bicycles or tricycles, mopeds, dirt bikes, and three- or four-wheel all-terrain vehicles; c. mobile homes, motor homes, house trailers, and camper bodies; and d. snowmobiles, watercraft, and aircraft; and includes tires, tubes, tracks, parts, or equipment of any of the above. 9. Motorized vehicle means a self-propelled land or amphibious vehicle regardless of method of surface contact. This does not include vehicles that are designed and used to assist the handicapped and are not required to be licensed for road use. 10. Motor vehicle means a motorized vehicle, a trailer, or a semi-trailer, and all attached machinery or equipment, if: a. it is subject to motor vehicle registration; or b. it is designed for use on public roads. 11. Occurrence means an event that causes accidental loss to covered property. 12. Pollutant means: a. any solid, liquid, gaseous, thermal, or radioactive irritant or contaminant, including acids, alkalis, chemicals, fumes, smoke, soot, vapor, and waste. Waste includes materials to be recycled, reclaimed, or reconditioned, as well as disposed of; and b. electrical or magnetic emissions, whether visible or invisible, and sound emissions. 13. Recreational motor vehicle means a motorized vehicle, a trailer, or attached equipment that is designed or used for leisure time activities, and which is not a motor vehicle. 14. Residence means a one- to four-family house, or a one- or two-family mobile home used for residential purposes. 15. Terms means all provisions, limitations, exclusions, conditions, declarations, and definitions that apply to this Property Coverage. PRINCIPAL PROPERTY COVERAGES Each Principal Property Coverage applies only if a limit is shown for that coverage on the declarations. COVERAGE A RESIDENCE 1. We cover the residence on the insured premises. This includes additions and built-in components and fixtures, as well as building materials and supplies located on the insured premises for use in the construction, alteration, or repair of the residence. 2. Property Not Covered - We do not cover: a. land, including the land on which covered property is located, underground water, or surface water; b. private power, light, or electric poles; or c. trees, plants, shrubs, or lawns, except as provided under Incidental Property Coverages. FP-1 (Ed.1-09) Page 2 of 21

3 COVERAGE C - PERSONAL PROPERTY 1. We cover personal property owned by or in the care of an insured. Coverage for personal property usually on residential premises of an insured other than the insured premises is limited to 10% of the Coverage C limit. 2. We cover personal property in a newly acquired principal place of residence. The full Coverage C limit applies for 30 days from the date you begin to move. After that, coverage for personal property in a newly acquired principal place of residence is limited to 10% of the Coverage C limit. This coverage does not extend past the date on which the policy expires or the date on which the policy is terminated. 3. At your option, personal property owned by a guest or domestic employee is covered while it is in that part of residential premises occupied by an insured. 4. Limitations on Certain Property - The special limits shown below do not increase the Coverage C limit. The limit for each class is the total limit per occurrence for all items in that class. If two or more classes describe an insured item, the class with the lower limit applies. a. $200 on money, bank notes, bullion, gold other than goldware and gold-plated ware, silver other than silverware and silver-plated ware, platinum, and numismatic property. b. $1,000 on securities, stamps, letters of credit, notes other than bank notes, personal records, tickets, accounts, deeds, evidence of debt, passports, and manuscripts. This special limit applies regardless of the medium on which these items exist, and includes the cost of research or other expenses necessary to reproduce, replace, or restore the item. c. $7,500 on motorized vehicles used to service the insured premises and not designed or licensed for use on public roads. d. $1,000 on watercraft including their trailers, furnishings, equipment, and engines or motors. e. $1,000 on campers, camper bodies, pickup toppers, and non-farm trailers not otherwise provided for. f. $1,000 on devices, accessories or antennas designed for reproducing, receiving, transmitting, recording or playing back data, sound or picture (or any film, tape, wire, record or other media designed for use with such device) which may be operated from the electrical system of a motorized vehicle or watercraft while in or on the motorized vehicle or watercraft. g. For loss by theft: 1) $1,500 on jewelry, watches, precious and semiprecious stones, gems, and furs; 2) $2,500 on silverware, goldware, pewterware, and items plated with gold or silver; and 3) $2,000 on guns and items related to guns. h. For loss to personal property used, in whole or in part, for business (except farming) purposes: 1) $2,500 on property while on the insured premises ; and 2) $250 on property while away from the insured premises. These special limits include the cost of research or other expenses necessary to reproduce, replace, or restore data. 5. Property Not Covered We do not cover: a. property covered by any scheduled insurance; b. animals, birds, fish, or insects; c. motorized vehicles. This includes their parts, equipment, and accessories while in or on a motorized vehicle. We do cover motorized vehicles that are not subject to motor vehicle registration if they are: 1) designed and used to assist the handicapped; or 2) used only to service the insured premises, subject to the Limitations on Certain Property. d. aircraft, including their parts and equipment. This does not include model aircraft which is not designed or used to carry people or cargo; e. property of roomers or boarders who are not insureds ; f. trees, plants, shrubs, or lawns, except as provided under Incidental Property Coverages; g. loss that results from credit or debit cards, except as provided under Incidental Property Coverages; h. land, including the land on which covered property is located, underground water, or surface water; i. recreational motor vehicles whether or not used to service the insured premises ; j. electronic devices, accessories, or antennas that may be operated from the electrical system of a motorized vehicle, farm machinery or equipment, or watercraft while in or on the motorized vehicle, farm machinery or equipment, or watercraft. This includes films, tapes, wires, discs, records, or other media for use with such devices; k. farm personal property; or l. private power, light, or electric poles; wells or well pumps; or irrigation systems. COVERAGE D - ADDITIONAL LIVING COSTS AND LOSS OF RENT 1. We pay the necessary and reasonable increase in living costs you incur to maintain the normal standard of living of your household if a part of the residence occupied by your household is made unfit for use by an insured loss. We pay only for the period of time reasonably required to make the residence fit for use or until your household is permanently relocated, whichever is less. This period of time is not limited by the policy period. FP-1 (Ed.1-09) Page 3 of 21

4 2. We pay for the rent you lose or the fair rental value if the part of the residence rented or held for rental to others is made unfit for use by an insured loss. We pay only for the period of time reasonably required to make the residence fit for use or until your household is permanently relocated, whichever is less. Loss of rent is the amount you would have received less the charges and expenses that do not continue while the residence is unfit for use. This period of time is not limited by the policy period. 3. We pay your additional living costs and loss of rent or fair rental value as described above for up to two weeks if a premises neighboring the insured premises is damaged from a peril insured against by this policy and you may not, by order of civil authority, use the residence. This is not limited by the policy period. 4. We do not pay for loss of rent or costs due to the cancellation of a lease or an agreement. 5. The limit shown on the declarations for Coverage D is the most we pay for all of the coverages described above. COVERAGE E - SCHEDULED FARM PERSONAL PROPERTY 1. We cover the classes or items of farm personal property for which a limit is shown on the declarations. Coverage applies while property is on the insured premises. 2. Unless otherwise specified, coverage for property while away from the insured premises is limited to 10% of the applicable limit for such property. This does not increase the limit. 3. Described Machinery We cover specifically scheduled items of mobile farm machinery and equipment for which a limit is shown on the declarations. The limits shown on the declarations apply to covered property while on or away from the insured premises. Replacement Items We cover mobile farm machinery and equipment you acquire during the policy period to replace specific items that are scheduled on the declarations. You must provide us with a complete description of each replacement item and pay any additional premium within 30 days of acquisition. Any premium due will be charged from the date you acquire the property. The most we will pay under this coverage is the smaller of the following: 1) the limit shown on the declarations for the specific item replaced plus an additional amount up to $25,000 per occurrence ; or 2) the actual cash value of the item. This coverage applies for 30 days after you acquire a replacement item or until you report it to us, whichever occurs first. This coverage does not extend past the end of the policy period. If you do not report a replacement item to us within the 30-day period and pay the additional premium, the most that we will pay is the limit shown for the item replaced. 4. Machinery Not Described When a limit is shown on the declarations for Machinery Not Described, we cover your unscheduled mobile farm machinery and equipment including tools, accessories, and spare parts. The limit shown on the declarations applies to covered property while on or away from the insured premises. We pay no more than $1,000 for any one item of covered property. We do not cover: a. property which is specifically insured or any property covered under Described Machinery; b. brooders, fences, windmills or windcharges, or their towers; c. threshing machines, tractors, combines, corn pickers, hay balers, harvesters, peanut diggers, potato diggers or pickers, cotton pickers, crop driers, or sawmill equipment; d. manufactured gas, liquified petroleum gas, gasoline, or their containers; e. bulk milk tanks, bulk feed tanks, barn cleaners, pasteurizers, boilers, or any permanent fixtures attached to or within a building; f. portable buildings or portable structures; g. irrigation equipment, irrigation well pumps, and their motors and control panels; or h. non-farm vehicles. 5. Borrowed, Rented, or Leased Equipment When a limit is shown on the declarations for Borrowed, Rented, or Leased Equipment, we cover farm machinery and equipment that you borrow, rent, or lease from others to use in your farming operation. The limit shown on the declarations applies to covered property while on or away from the insured premises. We do not cover: a. non-farm vehicles ; b. dealers demonstration machinery, vehicles, or equipment; or c. property in which you have an interest either as an owner or lienholder. We do not cover borrowed, rented, or leased farm machinery when coverage for such property is provided elsewhere under this or any other policy you may have. FP-1 (Ed.1-09) Page 4 of 21

5 6. Livestock We cover specifically scheduled livestock for which a limit is shown on the declarations. We also cover classes of livestock for which a limit is shown on the declarations. The limits shown on the declarations apply to covered livestock while on or away from the insured premises. The most we pay for loss to any one head of livestock, other than livestock specifically scheduled on the declarations, is the smallest of the following amounts: a. 120% of the amount obtained by dividing the limit for the affected class of livestock by the number of head in that class owned by you at the time of loss; b. the actual cash value of the livestock damaged or destroyed; or c. $2,500. Each horse, mule, or head of cattle under one year of age at the time of loss will be counted as one-half head. 7. Poultry We cover specifically scheduled poultry for which a limit is shown on the declarations. We also cover classes of poultry for which a limit is shown on the declarations. The limits shown on the declarations apply to covered poultry while on or away from the insured premises. Poultry means chickens, ducks, geese, and turkeys. The most we pay for loss to any one bird is its cash market value at the time of loss. We do not cover poultry in heated buildings or turkeys unless specifically scheduled on the declarations. 8. Grain When a limit is shown on the declarations for Grain, we cover grain. This includes threshed seeds, threshed beans, silage, ground feed, and manufactured and compounded stock foods in buildings, structures, sacks, wagons, or trucks. This does not include grain under government loan. We cover grain in stacks, shocks, swaths, or piles in the open only for loss caused by the peril of fire. 9. Hay in Buildings When a limit is shown on the declarations for Hay in Buildings, we cover hay, fodder, straw and other animal bedding that is in a building or structure. 10. Hay in the Open When a limit is shown on the declarations for Hay in the Open, we cover hay, fodder, straw and other animal bedding in stacks, windrows, and bales in the open only for loss caused by the peril of fire. The most we pay for hay, fodder, straw and other animal bedding in the open is $10,000 per stack unless a higher limit is shown on the declarations. A stack means hay, fodder, straw and other animal bedding in one area separated by a clear space of 100 feet or more from any other hay, fodder, straw and other animal bedding in the open. 11. Farm Operations Records Expenses When a limit is shown on the declarations for Farm Operations Records Expenses, we cover the expenses you incur to reproduce, replace, or restore your farm operations records. This includes the research necessary to obtain data. Farm operations records shall include books of account, manuscripts, abstracts, drawings, card index systems, and other records (except film, tape, disc, drum, cell, and other recording or storage media for electronic data processing) pertaining to the operations of the farm. 12. Property Not Covered Coverage E does not apply to: a. property covered under Coverages A, C, F or G; b. growing crops, standing crops, trees, plants, shrubs, and lawns; c. devices, accessories, or antennas designed for reproducing, receiving, transmitting, recording or playing back data, sound, or picture while in or on a vehicle, farm machinery or equipment, or watercraft unless such device, accessory, or antenna is specifically scheduled on the declarations or permanently installed by the manufacturer or dealer in a covered vehicle, farm machinery or equipment, or watercraft. This exclusion does not apply to GPS units, crop monitors, or autosteer systems; d. film, tape, wire, record, or other media for use with any device designed for reproducing, receiving, transmitting, recording, or playing back of data, sound, or picture while in a vehicle, farm machinery or equipment, or watercraft. This exclusion does not apply to GPS units, crop monitors, or autosteer systems. There is no coverage for restoration of data; e. contraband or property used in the course of illegal transportation or trade; f. land, including the land on which covered property is located, underground water, or surface water; or g. while away from the insured premises : 1) property in the custody of a common or contract carrier; 2) property stored or being processed in manufacturing plants, public elevators, warehouses, seed houses, or commercial drying plants; 3) property in public sales barns or public sales yards or stockyards; or 4) property at packing plants or slaughter houses. FP-1 (Ed.1-09) Page 5 of 21

6 COVERAGE F UNSCHEDULED FARM PERSONAL PROPERTY 1. When a limit is shown on the declarations for Coverage F, we cover, while on the insured premises, your farm personal property usual and incidental to the operation of the farm. 2. Property Away from Premises Only the following property is covered while away from the insured premises : a. grain, threshed seeds, threshed beans, hay, fodder, straw and other animal bedding, silage, ground feed, and manufactured and compounded stock foods; b. livestock ; and c. farm machinery, equipment, implements, tools, and supplies. 3. Special Limits That Apply to Livestock The most that we pay for loss or damage to any one head of livestock is the smaller of: a. the actual cash value; b. $2,500; or c. $1,000 on any horse, mule, or head of cattle under one year of age at the time of loss. 4. Special Limitations That Apply To Grain, Hay, Fodder, Straw And Other Animal Bedding a. We cover the following for direct physical loss caused only by the peril of fire: 1) grain, in stacks, shocks, swaths, or piles in the open; 2) unharvested barley, corn, oats, rye, wheat and other grains, flax, soybeans, and sunflowers; and 3) hay, fodder, straw and other animal bedding, in stacks, windrows, and bales in the open. b. The most we pay for loss to property in the open as listed under 4.a.1) and 4.a.2) above is 10% of the Coverage F limit. This does not increase the Coverage F limit. c. The most we pay for loss or damage to any one stack of hay, fodder, straw and other animal bedding is $10,000 unless a higher limit is shown on the declarations. A stack means hay, fodder, straw and other animal bedding in one area separated by a clear space of 100 feet or more from any other hay, fodder, straw and other animal bedding in the open. 5. Property Not Covered Coverage F does not apply to: a. property covered under Coverages A, C, E or G; b. property specifically insured; c. tobacco, cotton, vegetables, root crops, bulbs, fruit, or nursery stock; d. contents of buildings used for the cleaning, grading, sorting, packing, or storage of potatoes, onions, bulbs, or fruits; e. race horses, show horses, or show ponies; f. contents of heated chicken fryer or boiler houses, laying houses, poultry brooder houses, or duck or turkey houses, including fowl therein; g. fences, windmills, windchargers, or their towers; h. non-farm vehicles ; i. animals other than livestock ; j. bulk milk tanks, bulk feed tanks, barn cleaners, pasteurizers, boilers, silo unloaders, and any permanent fixtures attached to or within the building; k. portable buildings or portable structures; l. farm operations records; m. sawmill equipment; n. borrowed, rented, or leased machinery and equipment; o. trees, plants, shrubs, and lawns; p. growing crops and standing crops, except as covered under 4.a.2) above; q. devices, accessories, or antennas designed for reproducing, receiving, transmitting, recording or playing back data, sound, or picture while in or on a vehicle, farm machinery or equipment, or watercraft unless such device, accessory, or antenna is specifically scheduled on the declarations or permanently installed by the manufacturer or dealer in a covered vehicle, farm machinery or equipment, or watercraft. This exclusion does not apply to GPS units, crop monitors, or autosteer systems; r. film, tape, wire, record, or other media for use with any device designed for reproducing, receiving, transmitting, recording, or playing back of data, sound, or picture while in a vehicle, farm machinery or equipment, or watercraft. This exclusion does not apply to GPS units, crop monitors, or autosteer systems. There is no coverage for restoration of data; s. contraband or property used in the course of illegal transportation or trade; t. land, including the land on which covered property is located, underground water, or surface water; FP-1 (Ed.1-09) Page 6 of 21

7 u. while away from the insured premises : 1) property in the custody of a common or contract carrier; 2) property stored or being processed in manufacturing plants, public elevators, warehouses, seed houses, or commercial drying plants; 3) property in public sales barns or public sales yards or stockyards; or 4) property at packing plants or slaughter houses; v. irrigation equipment, irrigation well pumps, and their motors and control panels; w. private power, light, or electric poles; wells or well pumps; or outdoor antennas; x. the contents of a rice warehouse, rice drying house, cotton gin building belonging to a cotton gin plant or located on gin premises, or machinery, vehicles, implements that are part of these operations; y. animal excrement; or z. any property shown on the declarations under Additional Property Not Covered Under Coverage F. COVERAGE G FARM BARNS, BUILDINGS, AND STRUCTURES 1. We cover farm barns, farm buildings, portable buildings and structures, tenant s improvements and betterments, additional farm dwellings, and other structures located on the insured premises for which a limit is shown on the declarations. 2. The limit for each covered building or structure includes: a. attached sheds and fixtures (except silos, whether attached or not); and b. all materials and supplies intended for use in the construction, alteration, or repair of that building or structure. These items must be on or adjacent to the insured premises. 3. The limit for each additional farm dwelling includes additions, fixtures, and outdoor equipment used for servicing that dwelling. 4. The limit for tenant s improvements and betterments includes permanent fixtures, alterations, decorations, and additions, made or acquired at your expense, which are a part of the described farm barn or farm structure. 5. For any one portable building, we pay no more than the proportion of the limit for portable buildings or structures that the value of each bears to the total value of all such portable buildings or structures that you own at the time of loss. 6. Property Not Covered Coverage G does not apply to: a. property covered under Coverages A, C, E or F; b. contraband or property used in the course of illegal transportation or trade; c. land, including the land on which covered property is located, underground water, or surface water; or d. private power, light, or electric poles; fences; or outdoor antennas. INCIDENTAL PROPERTY COVERAGES This form provides the following Incidental Property Coverages. They are subject to all of the terms of the applicable Principal Property Coverages. These Incidental Property Coverages provide additional limits unless otherwise stated. Incidental Property Coverages That Apply To Coverages A, C, E, F and G. 1. Emergency Removal We pay for direct physical loss to covered property that is moved from a premises to prevent a loss from perils insured against. The Exclusions That Apply To Property Coverages do not apply to this Incidental Property Coverage. The property is covered for up to 30 days, however this coverage does not extend past the date on which this policy expires. We pay up to $250 towing charge to move a covered mobile home that is in danger from a peril insured against. This coverage does not increase the limits shown for the property being removed. 2. Debris Removal We pay for the cost to remove the debris of covered property after a loss. The loss must be caused by a peril that applies to the damaged property. We will not pay more for direct physical loss to property and debris removal combined than the limit that applies to the damaged property. If the covered loss plus the cost of debris removal is more than the applicable limit, we will pay up to an extra 5% of the applicable limit to cover the cost of debris removal. This coverage does not include any cost or expense to test for, monitor, clean up, remove, contain, treat, detoxify, neutralize or in any way respond to or assess the effects of pollutants. We also pay the cost to remove fallen trees which cause damage to property covered under Coverages A or C if the falling of the tree is caused by any of the perils insured against described under the Broad Perils section and coverage is not provided elsewhere by this policy. Regardless of the number of fallen trees, the most we will pay is $500 per occurrence. 3. Fire Department Service Charge We pay for charges assumed by you under a contract or agreement when a fire department is called to save or protect covered property from a peril insured against. We do not cover fire department services charges if the property is located within the limits of the city, municipality or protection district furnishing the fire department response. The most we pay is $500 per occurrence unless a higher limit is shown on the declarations. FP-1 (Ed.1-09) Page 7 of 21

8 Incidental Property Coverages That Apply to Coverages A and/or C Only 1. Credit Card, Forgery, and Counterfeit Money We pay for loss if an insured : a. by law must pay for the unauthorized use of credit or debit cards issued or registered in the name of an insured ; b. has a loss when checks, drafts, notes, or negotiable instruments are forged or altered; or c. accepts in good faith counterfeit United States or Canadian paper money. The most we pay is $1,000 per occurrence unless a higher limit is shown on the declarations. We do not pay for a loss if: a. an insured has not complied with the rules under which the credit or debit card was issued; b. the loss is caused by the dishonesty of an insured ; c. the loss results from the business of an insured ; or d. the loss occurs while a person who is not an insured has the credit or debit card with the consent of an insured. 2. Trees, Plants, Shrubs, or Lawns We pay for direct physical loss to trees, plants, shrubs, or lawns on the insured premises caused by: a. fire or lightning, explosion, riot or civil commotion, aircraft; b. vehicles if not owned or operated by an occupant of the insured premises ; or c. vandalism or theft. You may apply up to 10% of the Coverage C limit to cover trees, plants, shrubs, or lawns. We do not pay more than $500 for each tree, plant, or shrub. This includes the cost to remove the debris of the covered item. We do not cover trees, plants, shrubs, or lawns: a. grown for business ; or b. located more than 250 feet from the residence covered under Coverage A. 3. Grave Markers We pay up to $1,000 for direct physical loss to grave markers and mausoleums caused by a peril insured against described under the Broad Perils section. 4. Glass Breakage This Incidental Property Coverage only applies when BASIC, BROAD, or SPECIAL is shown as applicable on the declarations. We pay for breakage of glass that is part of a residence. We pay to replace the damaged glass with safety glazing materials if required by code, ordinance, or law. However, we do not pay for loss on the insured premises if the residence is vacant for more than 30 consecutive days just before the loss. A residence being built is not vacant. This coverage does not increase the limits shown for the property covered. 5. Collapse This Incidental Property Coverage only applies when BROAD or SPECIAL is shown as applicable on the declarations. We pay for direct physical loss to covered property involving an abrupt falling down or caving in of a building or a part of a building with the result that the building or part of the building cannot be occupied for its current intended purpose if caused by the following: a. the perils applying to Coverage C in this policy. Under this Other Coverage these perils apply to covered buildings and personal property; b. hidden insect or vermin damage or hidden decay; c. weight of contents or people; d. weight of rain which collects on a roof; or e. the use of defective materials or methods in construction or repair if the collapse occurs during the course of construction or repair. Under b. through e. above, unless the loss is the direct result of the collapse of a building, we do not pay for loss to awnings or canopies; swimming pools (or their equipment); fences; patios; paved areas; retaining walls; bulkheads; foundations; wharves; docks; piers; underground pipes, flues, and drains; cesspools; or septic tanks. A building or any part of a building that is in danger of falling down or caving in is not considered to be in a state of collapse. A part of a building that is standing is not considered to be in a state of collapse even if it has separated from another part of the building. Collapse does not mean settling, cracking, shrinking, bulging, or expanding. A building or any part of a building that is standing is not considered to be in a state of collapse even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage, or expansion. This coverage does not increase the limits shown for the property covered. 6. Tenant s Improvements We pay for direct physical loss caused by a peril that applies to Coverage C to improvements to the residence on the insured premises made or acquired at your expense. These are permanent fixtures, alterations, decorations, and additions. The most we pay per occurrence is 10% of the Coverage C limit unless a higher limit is shown on the declarations. This coverage does not apply to a residence covered under Coverage A. FP-1 (Ed.1-09) Page 8 of 21

9 PERILS INSURED AGAINST This section describes 4 levels of coverage LIMITED, BASIC, BROAD, and SPECIAL. The level of coverage that applies to each item listed on the declarations will be shown opposite the item. All of the perils listed in this form may not apply to your policy. LIMITED PERILS When covered property is shown on the declarations as having LIMITED applicable, we insure the risk of direct physical loss to that property caused by the perils described in this Limited Perils section, unless the loss is excluded under the Exclusions That Apply To Property Coverages. 1. Fire or Lightning This does not cover loss resulting from any electrical injury or disturbance to electrical appliances, devices, fixtures, or wiring caused by electrical currents artificially generated unless fire ensues, and then only for loss caused by such fire. 2. Windstorm or Hail However, we do not pay for loss: a. to the interior of a structure, or to property inside, caused by dust, rain, sand, sleet, snow, water, or weight thereof, all whether driven by wind or not, which enter through an opening in the structure not made by the direct force of wind or hail; b. to watercraft or their trailers, furnishings, equipment, or engines or motors unless inside a fully enclosed building. We do cover canoes, rowboats and paddle boats while on the insured premises ; c. caused directly or indirectly by frost, cold weather, ice (other than hail), snow, sleet, or weight thereof, all whether driven by wind or not; d. to livestock or poultry caused by: 1) running into streams or ditches or against fences or other objects; 2) smothering; 3) fright; or 4) freezing in blizzards or snowstorms; e. to barley, corn, oats, rye, wheat, and other grain, flax, soybeans, sunflowers, hay, fodder, straw and other animal bedding while outside of buildings; f. to farm produce in stacks, shocks, or swaths; or g. to the following property: 1) cloth or plastic tarpaulins, silage bags or sheets, or temporary roofs used to cover property in the open; 2) seawalls, property line walls, retaining walls and similar walls; 3) greenhouses, hothouses, slat houses, trellises, pergolas, cabanas and outdoor equipment used for servicing the premises; or 4) wharves, docks, piers, boathouses, bulkheads or other structures located over or partially over water and the property therein or thereon. 3. Explosion However, we do not pay for loss caused by: a. explosion of alcohol stills, steam boilers, steam pipes, steam turbines, or steam engines, if owned or leased by you or operated under your control; b. shock waves caused by aircraft, known as sonic boom ; c. electric arcing; d. rupture or bursting of rotating or moving parts of machinery caused by centrifugal force or mechanical breakdown; e. water hammer; f. rupture or bursting of water pipes; g. rupture, bursting, or operation of pressure relief devices; or h. rupture or bursting due to swelling of the contents of any building or structure, caused by water. 4. Riot or Civil Commotion 5. Aircraft - This means only direct loss from actual physical contact of an aircraft, or objects falling from an aircraft, with covered property. This does not include loss caused by chemicals released or sprayed. 6. Vehicles This means only loss or damage caused by contact of a vehicle, or an object thrown up by a vehicle, with covered property or with a building or structure containing covered property. However, we do not pay for: a. damage to livestock or to a fence, driveway, or walk; or b. loss caused by a vehicle owned or operated by an occupant of the insured premises, except for loss to property covered under Coverages A or C. 7. Sudden and Accidental Damage from Smoke However, we do not pay for loss caused by smoke from agricultural smudging or industrial operations. FP-1 (Ed.1-09) Page 9 of 21

10 8. Sinkhole Collapse - This means direct physical loss caused by sudden settlement or collapse of earth supporting covered property. The earth settlement or collapse must result from subterranean voids created by the action of water on a limestone or similar rock formation. However, we do not cover the value of land or the cost of filling sinkholes. 9. Volcanic Action - This means: a. airborne volcanic blast or airborne shock waves; b. ash, dust, or particulate matter; and c. lava flow. However, we do not cover removal of ash, dust, or particulate matter that does not cause direct physical loss to covered property. BASIC PERILS When covered property is shown on the declarations as having BASIC applicable, we insure the risk of direct physical loss to that property caused by the perils described in the Limited Perils section plus the perils described in this Basic Perils section, unless the loss is excluded under the Exclusions That Apply To Property Coverages. 10. Vandalism However, we do not pay for loss to property on the insured premises if the residence, building, or structure is vacant for more than 30 consecutive days just before the loss. A residence, building, or structure being built is not vacant. 11. Theft - This includes attempted theft and loss of property from a known place when it is likely that theft occurred. However, we do not cover: a. theft by an insured ; b. theft in or to a residence, building, or structure being built, or theft of materials or supplies for use in construction of the residence, building, or structure until the insured premises on which the residence, building, or structure is being built is occupied; c. loss of a precious or semiprecious stone from its setting; d. loss that results from the theft of a credit or debit card, except as provided under Incidental Property Coverages; e. theft from a part of the insured premises usually occupied solely by an insured while it is rented to others; f. theft that occurs away from the insured premises of: 1) property while on the part of residential premises which an insured owns, rents, or occupies, except for the time while an insured temporarily resides there. We do cover the property of an insured who is a full-time student while it is in the living quarters occupied by the student at school; 2) trailers or their equipment; 3) campers or camper bodies; or 4) watercraft or their furnishings, equipment, or engines or motors; g. loss due to voluntary parting with possession of covered property if an insured is induced to do so by a trick, scheme, device, or through fraud or false pretense. This includes acceptance of: 1) counterfeit money or fraudulent post office or express money orders; 2) checks or promissory notes that are not paid upon presentation; or 3) credit cards or debit cards that are illegally obtained and or used; h. disclosed on taking inventory; i. by wrongful conversion or embezzlement; j. by escape or mysterious disappearance, unless there is evidence that the property was stolen; k. due to unauthorized instructions to transfer property to any person or to any place; or l. from premises which are vacant for more than 30 consecutive days just before the loss. 12. Collision a. Covered Machinery We pay for loss or damage to covered farm machinery caused by the collision or overturn of that machinery. Collision means accidental contact of the farm machinery with another vehicle or object. However, we do not pay for loss or damage: 1) to tires, tubes or tracks, unless the damage is coincidental with other damage to the farm machinery or equipment; 2) caused by contact between a tractor and implement during towing, hitching, or unhitching; 3) caused by foreign objects taken into any farm machine or mechanical harvester; 4) while farm machinery is used in, or in the practice or preparation for, racing, speed, pulling or pushing, demolition, or stunt activities or contests; 5) caused by the impact of farm machinery with an object below the surface of the ground; or 6) caused by falling objects. FP-1 (Ed.1-09) Page 10 of 21

11 b. Covered Livestock We pay for death of covered livestock caused or made necessary by the collision or overturn of a vehicle on which the livestock is being transported. Collision means the accidental contact of the vehicle transporting the livestock with: 1) another vehicle, but not a vehicle owned or operated by you ; or 2) another object. We also pay for death to covered livestock caused or made necessary by being struck by a vehicle not owned or operated by you. c. Other Covered Personal Property We pay for loss of or damage to covered personal property other than farm machinery or livestock, in or on a vehicle, caused by the collision or overturn of that vehicle. Collision means the accidental contact of the vehicle with another vehicle or object.13. Electrocution of Livestock - This means loss by sudden and accidental electrocution of livestock covered under this policy resulting in the immediate death or destruction of the covered livestock. 14. Additional Perils Applying to Livestock (excluding sheep) We pay for loss resulting from the death or necessary destruction of livestock (excluding sheep) caused by: a. accidental shooting; b. drowning, excluding livestock less than 30 days of age; c. attack by dogs or wild animals; and d. collapse of a building. BROAD PERILS When covered property is shown on the declarations as having BROAD applicable, we insure the risk of direct physical loss to that property caused by the perils described in the Limited Perils and Basic Perils sections plus the perils described in this Broad Perils section, unless the loss is excluded under the Exclusions That Apply To Property Coverages. 15. Falling Objects However, we do not pay for loss to: a. the interior of a structure, or to the property inside, unless the falling object has first damaged an outside wall or the roof of the structure by impact; or b. the object which falls. 16. Weight of Ice, Snow, or Sleet which damages a structure or the property inside a structure. However, we do not pay for loss to: a. awnings or canopies and their supports; or b. swimming pools (or their equipment), retaining walls, fences, piers, wharves, docks, foundations, patios, or paved areas. When weight of ice, snow, or sleet results in physical damage to a covered structure having BROAD applicable, we will pay for loss caused by such damage to insured personal property contained in the structure. 17. Sudden and Accidental Tearing Apart, Cracking, Burning, or Bulging of a heating, air-conditioning, or automatic fire protective sprinkling system or water heater. However, we do not pay for loss caused by freezing, except as provided under the peril of Freezing. 18. Accidental Discharge or Overflow of Liquids or Steam from a plumbing, heating, air-conditioning, or automatic fire protective sprinkling system; water heater; or domestic appliance. However, we do not pay for loss: a. caused by continuous or repeated seepage or leakage; b. if the residence, building, or structure has been vacant for more than 30 consecutive days just before the loss. A residence, building, or structure being built is not vacant; c. caused by freezing, except as provided under the peril of Freezing; d. on the insured premises caused by accidental discharge or overflow which comes from off the insured premises ; or e. to the system, heater, or appliance from which the liquid or steam escapes. ( We do pay the reasonable cost of removing and replacing only those parts of the building or mobile home needed to repair the system, heater, or appliance.) Plumbing systems and domestic appliances do not include gutters, downspouts, sumps, sump pumps, or related equipment. 19. Freezing of a plumbing, heating, air-conditioning, or automatic fire protective sprinkling system; water heater; or domestic appliance. However, we do not pay for loss on the insured premises while the residence, building, or structure is vacant or unoccupied or under construction and unoccupied, unless you have taken reasonable care to: a. maintain heat in the building or mobile home; or b. shut off the liquid supply and drain any such system, heater, or domestic appliance. Plumbing systems and domestic appliances do not include gutters, downspouts, sumps, sump pumps, or related equipment. 20. Sudden and Accidental Damage from Artificially Generated Electrical Currents However, we do not pay for loss to tubes, transistors, and similar electronic components. FP-1 (Ed.1-09) Page 11 of 21

12 SPECIAL FORM When covered property is shown on the declarations as having SPECIAL applicable, we insure the risk of direct physical loss to that property caused by the perils described in the Limited Perils, Basic Perils, and Broad Perils sections. Additionally, we insure the risk of direct physical loss, unless the loss is limited or excluded in this Special Form section or excluded under the Exclusions That Apply To Property Coverages. The following perils are not expanded by this Special Form coverage: windstorm or hail, explosion, sudden and accidental damage from smoke, sinkhole collapse, volcanic action, vandalism, theft, collision, accidental discharge or overflow of liquids or steam, or freezing. This Special Form does not provide coverage for loss caused by windstorm or hail, explosion, smoke, sinkhole collapse, volcanic action, vandalism, theft, attempted theft, collision, accidental discharge or overflow of liquids or steam, or freezing. For coverage applying, refer to applicable perils under the Limited Perils, Basic Perils, and Broad Perils sections. Property Not Covered Special Form does not apply to: 1. submersible pumps and sump pumps; 2. fertilizer, spray, farm chemicals, veterinary supplies, drugs or medicines, fuel, oil, or grease; 3. motor vehicles, recreational motor vehicles, campers, camper bodies, camper trailers, pickup toppers, watercraft, aircraft, their equipment, tires, tubes, tracks and parts; 4. alcohol producing equipment; 5. portable buildings and portable structures; 6. irrigation equipment, irrigation well pumps, and their motors and control panels; 7. threshing machines (not including combines) or sawmill equipment; 8. farm operations records expense; 9. collectors or other devices designed for making use of solar energy; 10. cloth or plastic tarpaulins, silage bags or sheets, or temporary roofs used to cover property in the open; 11. livestock, poultry, crops, farm products, or any farm produce in stacks, shocks, or swaths; or 12. tires, tubes or tracks unless loss is coincidental with other loss covered by this form. Limitations on Certain Property (Coverage C Personal Property) When Special Form applies to Coverage C Personal Property, item 4.f. is deleted and replaced by the following: f. For loss by theft, misplacing, or losing: 1) $1,500 on jewelry, watches, precious and semiprecious stones, gems, and furs; 2) $2,500 on silverware, goldware, pewterware, and items plated with gold or silver; and 3) $2,000 on guns and items related to guns. Exclusions That Apply To Special Form 1. Freezing, Discharge, Leakage, or Overflow We do not pay for loss caused by freezing or the resulting discharge, leakage, or overflow from any plumbing, heating, air conditioning, or automatic fire protection sprinkler system; water heater; or domestic appliance if the residence, mobile home, building, or structure is vacant, unoccupied, or under construction and unoccupied. This exclusion does not apply if you take reasonable care to: a. maintain heat in the residence, mobile home, building or structure; or b. shut off the liquid supply and drain any such system, heater, or domestic appliance. 2. Freezing, Thawing, Pressure, or Weight of Ice or Water We do not pay for damage caused by freezing, thawing, pressure, or weight of ice or water, whether driven by wind or not, to structures (other than structures that are buildings, carports, or mobile homes) such as: a. swimming pools (or their equipment), fences, patios, paved areas; b. retaining walls, bulkheads, foundations; or c. wharves, docks, or piers. 3. Seepage or Leakage We do not pay for loss caused by repeated or continuous seepage or leakage of liquids or steam from within a plumbing, heating, air-conditioning, or automatic fire protection sprinkling system; water heater; or domestic appliance. However, we do pay for loss caused by the accidental leakage, overflow or discharge of liquids or steam from a plumbing, heating, airconditioning, or automatic fire protective sprinkling system; water heater; or domestic appliance. Plumbing systems and domestic appliances do not include gutters, downspouts, sumps, sump pumps, or related equipment. When loss is caused by the accidental leakage, overflow or discharge of liquids or steam from a plumbing, heating, air-conditioning, or automatic fire protective sprinkling system; water heater; or domestic appliance, we also pay the reasonable cost of removing and replacing those parts of the building or mobile home needed to repair the system, heater, or appliance. We do not pay for loss to the system, heater, or appliance from which the liquid or steam escapes. 4. Settling, Cracking, Shrinking, Bulging or Expanding We do not pay for loss caused by the settling, cracking, shrinking, bulging or expanding of a residence, mobile home, building, pavements, patios or other outdoor structures. 5. Animals, Birds, Vermin, Rodents, or Insects We do not pay for loss caused by animals owned or kept by an insured, domestic animals, birds, vermin, rodents, or insects, except as provided under Incidental Property Coverages Collapse. FP-1 (Ed.1-09) Page 12 of 21