What it does
FP 12 10 replaces the valuation condition for Coverages A and B on the scheduled dwellings so that loss is settled at actual cash value of the damaged part, not more than needed to repair or replace.
Who needs it
Older or rental farm dwellings that carriers will not insure at replacement cost.
Quoting and selling notes
Explain depreciation on roofs and older homes before binding. Wording reviewed: 01 98 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.
