THE FIVE SECTIONS OF FARM POLICY

There are five different sections to a farm policy:

• Residential Property Coverages (Farmowners)
• Farm Property Coverages (Farm buildings, machinery, produce and livestock)
• Residential Property Limited Coverages (Rented dwellings, seasonal, mobile homes)
• Miscellaneous Coverages (Jewellery, furs, watercraft, etc.)
• Farm Liability (Including Farmer’s Limited Pollution Liability Insurance at a maximum limit)
  

FACTS OF FARM PROPERTY COVERAGES

Your insurance coverage on farm produce, farm machinery and farm livestock are subject to a Co-Insurance percentage of 80%. You therefore need to maintain a limit of insurance on these items to at least 80% of the value of this property.

Your farm property is subject to the policy deductible. You may be able to lower your premium by buying higher deductibles.

All claims will be settled on an Actual Cash Value basis unless Replacement Cost is stated on the policy. Actual cash value will take into account depreciation of the property based on the age of the damaged property. Replacement Cost settlements do not take depreciation into account provided you actually replace or repair the damaged property.

Some farm buildings may be subject to a Rebuilding Clause depending on the condition. If you replace or repair the damaged property then you will receive the full amount of any loss up to the amount specified on the declaration page. If you do not repair or replace then you will only receive a specified percentage of the amount of loss payable.

FARM EARNINGS INSURANCE

This will come into play after you have a loss and you need income to continue with your farming operations. Earnings Insurance will do for you what your farm operation would have if such an interruption had not occurred.

FARM LIABILITY

Your Farm Liability Coverage will protect you from legal liability arising out of injuries to a Third Party Person or damage to a Third Party’s Property in the course of your personal activities as well as your farm activities. This coverage also includes Voluntary Medical Payments, Voluntary Property Damage and Tenants’ Legal Liability as described in the Farm Policy. This coverage also includes Farmer’s Limited Pollution Liability Insurance up to a specified limit stated on the policy.