Farm Coverage Quiz

What is the aggregate limit for liability coverage under Coverage H?

• $500,000

• $1 million

• $3 million

• $2 million

Answer explanation

The aggregate limit for liability coverage under Coverage H is set at $2 million, which provides substantial protection against potential claims.

Which coverage would replace a broken washer due to a burst pipe?

• Coverage A

• Coverage C

• Coverage B

• Coverage D

Answer explanation

Coverage C typically includes water damage from burst pipes, which would cover the cost of replacing a broken washer due to such an incident. Therefore, Coverage C is the correct choice.

What is the purpose of coinsurance clauses in farm coverage forms?

• To provide additional coverage

• To exclude certain types of losses

• To define key terms

• To ensure adequate valuation and limit erosion by defense costs

Answer explanation

Coinsurance clauses in farm coverage forms ensure adequate valuation of the insured property and limit the erosion of coverage by defense costs, thus protecting the policyholder's financial interests.

What does Coverage A in the Farm Property Coverage form insure?

• Farm homes and attached structures

• Unattached residential structures

• Scheduled farm personal property

• Household personal property

Answer explanation

Coverage A in the Farm Property Coverage form specifically insures farm homes and any structures that are attached to them, making this the correct choice.

Which coverage is responsible for paying additional living expenses if the farm dwelling is uninhabitable?

• Coverage B

• Coverage A

• Coverage C

• Coverage D

Answer explanation

Coverage D is responsible for paying additional living expenses if the farm dwelling is uninhabitable, providing financial support for temporary housing and related costs during the repair period.

What is an example of a built-in extra in farm coverage forms?

• Fire damage

• Pollutant cleanup

• Windstorm damage

• Theft

Answer explanation

Pollutant cleanup is a built-in extra in farm coverage forms, providing coverage for the costs associated with cleaning up pollutants. Other options like fire damage and theft are standard coverages, not extras.

What is the primary focus of Coverage E?

• Bodily injury and property damage liability

• Other farm structures

• Unscheduled farm personal property

• Scheduled farm personal property

Answer explanation

Coverage E primarily focuses on scheduled farm personal property, which includes specific items listed in the policy. This distinguishes it from other options that cover different aspects of farm insurance.

What type of property does Coverage B cover?

• Unattached residential structures not used for farm business

• Farm homes

• Farm machinery

• Household personal property

Answer explanation

Coverage B specifically covers unattached residential structures, such as sheds or garages, that are not used for farm business, making it the correct choice. Other options relate to farm-related properties or personal belongings.

What does the Farm Liability Coverage Form consolidate?

• All liability protections for farm operations

• Coverage for farm machinery

• Coverage for livestock

• Coverage for household personal property

Answer explanation

The Farm Liability Coverage Form consolidates all liability protections for farm operations, ensuring comprehensive coverage for various risks associated with farming activities.

What is included in the definition of 'insured premises'?

• Only the original farm land

• Newly leased farm land acquired during the policy term

• Only the barns and silos

• Only the farmhouse

Answer explanation

The definition of 'insured premises' includes newly leased farm land acquired during the policy term, ensuring coverage for any additional properties added to the policy, unlike the other options which are too limited.