Farm Coverage
Practice questions on farm coverage for the property exam, each with an answer and explanation.
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Study questions and answers
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1. Under the ISO farm property coverage form, which coverage applies to scheduled farm personal property such as listed machinery and livestock?
- Coverage A
- Coverage C
- Coverage E
- Coverage F
Show answer
Coverage E covers scheduled farm personal property, with each item or class listed. Coverage F covers unscheduled farm personal property on a blanket basis.
2. In the ISO farm property program, Coverage A applies to:
- Household personal property
- Dwellings
- Loss of use
- Barns and outbuildings
Show answer
Coverage A covers the farm dwelling. Coverages B, C and D cover other private structures, household personal property and loss of use, similar to a homeowners policy.
3. A farmer wants blanket coverage on farm equipment, supplies and grain without listing each item. Which coverage fits best?
- Coverage E, scheduled farm personal property items
- Coverage D, loss of use
- Coverage B, other private structures
- Coverage F, unscheduled farm personal property
Show answer
Coverage F insures farm personal property on a blanket basis under a single limit, rather than item by item.
4. Barns, silos, and other farm structures that are not part of the dwelling are covered under:
- Coverage G
- Coverage A
- Coverage C
- Coverage J
Show answer
Coverage G covers barns, outbuildings and other farm structures. Private structures tied to the dwelling, such as a detached garage, fall under Coverage B.
5. Under the ISO farm liability coverage form, which coverage pays medical expenses for people injured on the farm regardless of fault?
- Coverage H
- Coverage I
- Coverage J
- Coverage F
Show answer
In the farm liability form, Coverage H is bodily injury and property damage liability, Coverage I is personal and advertising injury, and Coverage J is medical payments.
6. A single package policy that combines property coverage and liability coverage for a working farm or ranch is called a:
- Farmowners-ranchowners policy
- Businessowners policy for small commercial risks
- Dwelling property policy with a liability add-on
- Homeowners special form with farm schedule
Show answer
The farmowners-ranchowners policy packages coverage for the farm dwelling, farm structures and farm personal property with farm liability. A businessowners policy is generally written for small non-farm businesses.
7. A homeowner sells vegetables from a garden and keeps a few animals, all incidental to living at the home. How is liability for this farming usually handled?
- No action is needed, since homeowners liability covers all farming
- Add a personal property replacement cost endorsement to the policy
- Add the ISO incidental farming endorsement to the homeowners policy
- Move the dwelling to a mobile home policy form
Show answer
Farming for profit is a business, and homeowners liability excludes business activity. The incidental farming endorsement (ISO HO 24 72) restores liability for small farming tied to the residence, while a true farm needs a farm program.
8. A farmer insures his cattle on a named-peril livestock coverage form. Which loss is most likely covered?
- Cattle killed by lightning
- Cattle that die from a herd disease
- Cattle that die from freezing weather
- Cattle that wander off and are never found
Show answer
Basic named-peril livestock coverage responds to perils such as fire, lightning, windstorm, electrocution and collision in transit. Death from disease or freezing is excluded unless the coverage is broadened.
9. A farmer worries that drought will cut the yield of his growing corn crop. Which coverage is designed for this exposure?
- Multiple peril crop insurance backed by the federal government program
- Farm property Coverage F on unscheduled farm personal property
- Farm liability Coverage H for bodily injury and property damage
- Equipment breakdown insurance on the farm machinery
Show answer
Yield loss to growing crops from perils such as drought belongs to multiple peril crop insurance, which is federally supported through the USDA Risk Management Agency and sold by private insurers. Farm property forms generally do not insure growing crops against yield loss.
10. A farmer regularly plants and harvests crops on his neighbors' land for a fee. Which statement about this custom farming under the ISO farm liability form is most accurate?
- It is always covered the same as the farmer's own operations
- It is covered only under Coverage J, medical payments, for injured neighbors
- Substantial custom farming for others is excluded unless endorsed
- It is covered only if the neighbor is a family member or lives on the farm
Show answer
The farm liability form treats ordinary farming as covered, but custom farming for others beyond a small receipts threshold is excluded unless an endorsement adds it. Fees for the work signal a commercial exposure.
11. Under the ISO farm property program, the family's furniture, clothing and appliances in the farmhouse are covered under which coverage?
- Coverage E, scheduled farm personal property
- Coverage F, unscheduled farm personal property
- Coverage C, household personal property
- Coverage G, other farm structures
Show answer
Coverage C works like Coverage C of a homeowners policy and insures household personal property. Farm personal property is excluded from it and goes under Coverage E or F.