What it does
FP 04 36 appears in carrier farm filings as Household Personal Property Replacement Cost (Coverage). Coverage C of FP 00 12 otherwise settles household property at actual cash value; a replacement cost endorsement removes the depreciation deduction. ISO's Texas version of a household personal property replacement cost endorsement (FP 05 36) shows the approach: replacement cost for most contents, with antiques, collectibles and similar items still valued at actual cash value.
Who needs it
Farm households that want new-for-old settlement on contents.
Quoting and selling notes
Recommend it on most farm dwellings; set the Coverage C limit at full replacement value.
Before presenting it
Ask the carrier for the specimen and read it with the farm coverage form it modifies before explaining it to the insured.
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.
