What it does
FP 05 21 replaces the valuation condition of the Mobile Agricultural Machinery And Equipment Coverage Form for items listed in its schedule, so those items are valued at replacement cost without deduction for depreciation.
Who needs it
Farms with new or late-model machinery financed through lenders who want replacement value.
Quoting and selling notes
Schedule only items that would actually be replaced with new; set limits at current replacement cost. 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.
