What it does
FP 10 40 makes earthquake and volcanic eruption covered causes of loss when earthquake is shown in the declarations for the farm dwelling, barns and outbuildings, and farm personal property forms. Shocks or eruptions within any 168-hour period are one occurrence.
Who needs it
Farms in seismic regions such as California, the Pacific Northwest and the New Madrid zone.
Quoting and selling notes
The basic farm causes of loss include earthquake only for livestock; buildings and other property need this form. 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.
