FAQs About Farm Coverages
Property policies are available in all U.S. states except Alaska, Hawaii, California, Florida, Louisiana, and Texas.

Equestrian Ranch & Estate Program policies are available for equestrian farms and estates and can include coverage for:

Your house and its contents

Jewelry, furs, fine arts, stamp and coin collections
Tenant dwellings
Farm buildings including stables, barns, arenas, storage buildings, run-in sheds
Tack & Grooming equipment
Office equipment including computers, phone systems, copiers, fax machines
Barn contents including furniture, washer and dryer units, other domestic appliances
Equipment used for the equestrian operation including tractors, tractor implements, farm machinery, mowers, small tools
Hay and Grain coverage while stored in a building
Comprehensive Personal Liability
(Available on policies that insure an owner-occupied primary residence, CPL covers general non-equine liability exposure for personal, not commercial, purposes.)
Equine liability to include your personal and commercial equestrian activities.
   
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How Do I Value My Structures?

2. What is an Appurtenant Structure?
3. What are Household Contents?
4. What is Loss of Use coverage?
5. What are the Covered Causes of Loss?
6. Basic Perils
7. Broad Perils
8. Special Perils
9. Elite Perils
10. What is Inflation Guard?
11. What is Loss Settlement on Dwelling and Contents?
12. What is Increased Cost - Ordinance or Law coverage?


1. How Do I Value My Structures?

If you are uncertain as to the current value of your structures for insurance purposes, you can contact a local builder to ask for an estimate to replace your buildings with buildings of similar size, structure, and function.

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2. What is an Appurtenant Structure?

An appurtenant structure is a structure of lesser value on the same premises as the main insured structure, such as a detached garage or shed, that is not designed or used for farming.

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3. What are Household Contents?
Household contents include your personal belongings and household possessions such as your furniture, clothing, electronics equipment, electrical appliances, and some valuables and cash up to the coverage limits.
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4. What is Loss of Use coverage?

Loss of Use provides coverage for the cost of additional living expenses that may result from damage to your residence or reimburses you for the fair rental value of the residence. Coverage lasts until the structure is repaired or replaced. Coverage limits range from 10% of the value of the dwelling to actual costs, depending on the Covered Causes of Loss selected.

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5. What are the Covered Causes of Loss?
For dwellings, the available Covered Causes of Loss include: Basic, Broad, Special, and Elite Perils. For other structures, Basic, Broad, and Special Perils coverages are available.
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6. Basic Perils
Includes losses from: (1) Fire or Lightning, (2) Windstorm or Hail, (3) Explosion, (4) Riot or Civil Commotion, (5) Aircraft, (6) Vehicles, (7) Sudden and Accidental Damage from Smoke, (8) Sinkhole Collapse, (9) Volcanic Action, (10) Vandalism, and (11) Theft.
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7. Broad Perils

Includes losses from:
(1) thru (11) listed above and; (12) Falling Objects; (13) Weight of Ice, Snow, or Sleet; (14) Sudden and Accidental Tearing Apart, Cracking, Burning, or Bulging of a heating, air-conditioning, or automatic sprinkling system or water heater; (15) Accidental Discharge or Overflow of Liquids or Steam from a plumbing, heating, air-conditioning, or automatic sprinkling system; water heater; or domestic appliance; (16) Freezing of a plumbing, heating, air-conditioning, or automatic sprinkling system; water heater; or domestic appliance; (17) Sudden and Accidental Damage from Artificially Generated Electrical Currents.

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8. Special Perils
Residence - Coverage for your Residence and Related Private Structures is provided for all risks of direct physical loss that are not specifically excluded.
Contents
- your household contents are covered for named perils, comparable to those listed in Broad Perils above.
Loss Settlement - losses to your residence are settled on a replacement cost basis, subject to the insurance to value requirements of the policy. Losses to your household contents are settled on an actual cash value basis, unless you purchase optional Replacement Value coverage.
Limitations on Certain Property - you are not required to itemize your household contents for certain classes of property where the policy contains built-in limits which cap the liability of the company. For example, the company will not pay more than $500 for money under Special Perils, regardless of the amount of money lost, stolen, or damaged. You can schedule items for higher amounts than the built-in limits if desired. For example, you might have jewelry valued higher than the built-in limit which you wish to schedule individually.
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9. Elite Perils

Available only when the dwelling is owner occupied.
Residence - Coverage for your Residence and Related Private Structures is provided for all risks of direct physical loss that are not specifically excluded.
Contents - your household contents are covered for all direct causes of physical loss that are not otherwise excluded.
Loss Settlement - losses to your residence are settled on a replacement cost basis, subject to the insurance to value requirements of the policy. Losses to your household contents are settled on a Replacement Value basis.
Limitations on Certain Property - Similar to the Limitations on Certain Property from Special Perils, however the built-in limits are generally higher.

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10. What is Inflation Guard?
Inflation Guard is an endorsement to a property policy that automatically increases the amount of insurance on buildings by a specific percentage annually. It is designed to offset the increased costs of replacing a building due to inflation.
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11. What is Loss Settlement on Dwelling and Contents?
You may select either Replacement Cost (RC) terms or Actual Cash Value (ACV) terms for Loss Settlement on your residence and your contents.
Replacement Cost (RC) determines the valuation of the property according to the cost of replacing it with property of a like kind and quality with no deduction for depreciation. (Note: RC is only available for contents under Special or Elite Perils.)
Actual Cash Value (ACV) determines the valuation of the property based on the cost of repairing or replacing it with property of like kind and quality. Usually, actual cash value equals the current replacement cost minus depreciation (based on age, condition, time in use, and obsolescence). Other factors, such as the nature and market value of the property, may be considered.
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12. What is Increased Cost - Ordinance or Law coverage?

This coverage can be added to a property policy written on a replacement cost basis. It provides coverage for the increased cost to repair or replace a structure, including demolition or removal costs, resulting from the enforcement of any building, zoning, or land use law, when the repair or replacement is made necessary by a covered cause of loss. This coverage is only available under Special or Elite Perils.

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Hallmark Equine Insurance Agency, Inc.
2130 Point Boulevard Suite 150 Elgin, IL 60123
(800) 734-0598 • (847) 844-8419 • Fax: (847) 844-8284
E-mail: info@hallmarkhorse.com
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