Did You Know?

AP 7204 Farm Property – What Does Coverage A include?

Coverage A is the first part of four coverages that are included in the AP 7204 Farm Property – Farm Dwellings, Appurtenant Structures, Household Personal Property and Loss of Use Coverage Form. Coverage A pertains to dwellings, which are defined as a building used principally for family residential purposes, and includes mobile homes, modular homes and prefabricated homes. It may be located on or away from the insured location. “Insured location” is defined as any location, including its private approaches, described in the Declarations pertaining to these Coverage Forms. Covered property under Coverage A includes:

• The dwellings owned by the insured and for which a Limit of Insurance is shown in the Declarations;
• Structures attached to covered "dwellings," except structures attached only by a fence, utility line or similar connection;
• Materials on the "insured location" intended for use in building, altering or repairing the covered "dwellings," or their attached structures; and
• If not otherwise covered in this policy, building and outdoor equipment used principally for the service of the "dwelling," its grounds or structures appurtenant to it, including equipment temporarily away from the premises.

A few examples of what’s not covered is:

• A detached garage;
• Land (including land on which the “dwelling” is located);
• Water; and
• Trees, shrubs, plants or lawns, except to the extent permitted by Extension of Coverage to Trees, Shrubs, Plans and Lawns, in Coverage Extension to Coverages A, B and C.

There are Special Limits of Insurance that pertain to Coverage A. They are part of Coverage A and not in addition to it. Special Limits of Insurance are subject to a limit of $1,000 in any one occurrence. These Special Limits apply to outdoor radio and TV antennas and towers and satellite systems including all electronic components attached to covered "dwellings". This Special Limit of Insurance applies only in excess of any applicable Deductible. If a higher Limit of Insurance for such property is specified in the Declarations, the higher limit will apply.

Your underwriter will be happy to explain further any questions about Coverage A, including any specific questions you may have on what is or is not covered.

Construction Confidence in the US

A recent article from Core Logic pointed out the impacts of the continued rising cost of building materials due to shortages and inflation. Wood/lumber, steel and copper were products of most concern to contractors who report impacts from cost fluctuations.

92% of contractors report moderate to high levels of difficulty finding skilled workers and 42% of contractors having difficulty in finding workers report turning down work due to skilled labor shortages. 93% of contractors are experiencing at least one material shortage, and 98% of contractors say that material fluctuations have a moderate to high impact on their business.

The impact of these continuing challenges to the construction market highlights the need to continue to be vigilant in having adequate ITV on property to help offset the rapidly rising costs of building materials and labor. 

Out with the Old, In with the New

Just a reminder that any emails sent to your underwriter using the gaic.com ending are obsolete and cannot reach your underwriter. In order to make sure that your email goes through, please check your underwriter's email contact information and if necessary, amend your contact email to [email protected]. For example, [email protected].