What are the additional exclusions that are applicable to the Special Cause of Loss Form?
Our goal at Ferranti-Graybeal is to educate our clients and prospects on the different types of insurance and how they work- their pieces and parts, if you will. Knowledge is power, the more you know and understand, the better off you are. Because, remember, this is your livelihood you’re protecting!
Today’s article on Farm Insurance, we will look at what’s specifically excluded from the Special Cause of Loss Form. This form is what is known as Open Peril (Insurance geek talk). This means it covers everything that is NOT listed in the exclusions. So…you guessed it….there are quite a few exclusions!!
Special Form of Loss Exclusions:
- If damage from an open fire used for curing or drying tobacco in the barn or building where this occurs, the loss will not be covered if:
*While the tobacco is being fired
*Within a 5 day period following tobacco firing
2. Collapse (unless provided for in additional coverage or collapse results from a covered cause)
3. Windstorms or Hail
*Dairy or farm products in the open
*Watercraft and all its accessories unless it’s in a fully enclosed building.
4. Snow, Ice, sleet, or rain that damages property in the open
5. Sand, dust, rain, snow, or sleet damage to interior of any building or structure, unless there’s other damage that causes a hole and any of these items then cause damage due to hole.
6. Thawing, freezing, pressure/weight of water or ice to any retaining wall, retaining wall, fence, pool, dock, pier, wharf, bulkhead, patio, or pavement
7. Discharge or overflow of water/steam from plumbing, heating, A/C, or automatic fire sprinkler system; or from household appliances:
*If there is a continuous/repeated seepage of water/steam over a period of weeks, months, or years
*Caused by or resulting from freezing in a building or structure that’s vacant, under construction, or unoccupied for 60+days, unless there’s been steps taken to prevent freezing by maintaining heat or shutting off water and draining pipes
*If system or appliance is defective
*If the discharge of water/steam takes place off premises but effects the property that is insured
8. Explosion damage from alcohol stills, steam pipes, steam boilers, or steam engines that are owned, leased, or operated by the insured person.
9. If any of the following is lost due to theft: trailers, campers, watercraft, accessories and equipment.
10. Shortage of inventory
11. If any farm personal property or portable structure disappears, it is not covered, unless there’s evidence of theft.
12. Voluntarily parting with property due to trickery or fraud.
13. Unauthorized instructions to transfer property to a person or place.
14. Vandalism or breakage of glass or safety grazing material if the building or structure was vacant for more than 60 consecutive days immediately before the loss.
15. Criminal or dishonest acts committed by an insured, any partner, employee, director, trustee, authorized rep, or anyone the insured has entrusted property to, regardless of whether acting alone or in collusion with others.
16. Electrical Current- Damage/loss caused by artificially generated electrical current, inc. electrical arcing that disturbs any electrical device, wires, or appliances.
*Exception here is if the damage/loss results in a fire- it’s covered.
17. Vapor, smoke, or gas- If any loss occurs to a building, personal property, or structure due to agricultural smudge or industrial ops.
18. Non-accidental Losses- things like: rust, corrosion, fungus, decay, wear and tear, deterioration, hidden or latent defects or if the damage is due to the quality of property itself.
19. Damage or Loss to structures, personal property, or buildings caused by any of the following:
*Dampness or dryness of atmosphere
* Mechanical breakdown- inc. bursting by centrifugal force
*Marring or scratching
*Settling, cracking, shrinking, or expansion
*Vermin, birds, rodents, domestic animals, or insects
20. Damage or loss to property on OR off the insured premises that is cause by:
*Pollutants- the discharge, dispersal, seepage, migration, release, or escape of
EXCEPTION: if any of the above is caused by a specified cause of loss, the insurance company will pay for any damage caused by a specified covered cause
*Weather conditions applicable only if weather conditions contribute to loss or damage caused by or resulting from the discharge, dispersal, seepage, migration, release, or escape of pollutants
*Acts/decisions- or the failure to do either
*Inadequate, faulty or defective:
-Zoning, planning, development, siting, or surveying
-Materials used in repair, renovation, remodeling, or construction
-Design, specifications, workmanship, construction, repair, renovation, remodeling, compaction, or grading
As you may understand, knowing what is excluded from your coverage, is as important as knowing what’s covered!
Our team of experts is waiting to help you put together your Customized Insurance Plan that is right for you and your needs!
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OR VISIT US ONLINE: FERRANTI-GRAYBEAL We have three locations in La Grande, Hermiston, and Pendleton Oregon.
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