What it does
FP 04 04 applies separately to each building in its schedule (dwellings under FP 00 12 or farm structures under FP 00 14). The valuation condition is replaced so covered loss is settled at replacement cost without deduction for depreciation, subject to the endorsement's conditions, and the endorsement includes ordinance or law coverage. For tenants, "building" means additions and improvements made at their expense.
Who needs it
Farms with newer or well-maintained buildings that would be rebuilt after a loss.
Quoting and selling notes
Insure to full replacement value and explain the conditions for collecting replacement cost. Older barns that would not be rebuilt are better suited to FP 04 78 or ACV. Wording reviewed: 09 03 edition.
How it fits the farm policy
A farm program endorsement changes only the coverage forms named in its "this endorsement modifies" list. Everything else in the Farm Coverage Part keeps working as written: the FP 00 90 additional coverages, conditions and definitions, the causes of loss selected from FP 10 60, and the farm liability forms. When presenting a quote, list each farm endorsement with its schedule entries (insured location, building or item, limit, deductible) so the insured can see exactly where the base coverage was broadened or narrowed.
