THIS IS A LEGAL CONTRACT FP-1 - PLEASE READ IT CAREFULLY - (Ed. 7-15)

PROPERTY COVERAGE (RESIDENCE AND FARM)

The following Table of Contents shows how this Property Coverage is organized. It will help “you” locate particular sections of this form.

TABLE OF CONTENTS Page Agreement ...................................................................................................................................... 1 Definitions ....................................................................................................................................... 2-4 Principal Property Coverages ......................................................................................................... 4-10 Coverage A – Residence .......................................................................................................... 4 Coverage C – Personal Property .............................................................................................. 4-6 Coverage D – Additional Living Costs and Loss of Rent .......................................................... 6 Coverage E – Scheduled Farm Personal Property ................................................................... 6-8 Coverage F – Unscheduled Farm Personal Property ............................................................... 8-10 Coverage G – Farm Barns, Buildings, and Structures .............................................................. 10 Incidental Property Coverages ....................................................................................................... 10-14 Perils Insured Against .................................................................................................................... 14-21 Limited Perils ............................................................................................................................. 14-15 Basic Perils ............................................................................................................................... 15-16 Broad Perils ............................................................................................................................... 16-17 Special Form ............................................................................................................................. 17-21 Exclusions That Apply To Property Coverages .............................................................................. 21-24 What Must Be Done in Case of Loss or Occurrence ...................................................................... 24-25 How Much We Pay For Loss or Occurrence .................................................................................. 25-29 Payment of Loss ............................................................................................................................. 29 Policy Conditions ............................................................................................................................ 29-31 Endorsements and schedules may also be a part of this policy. They are identified on the “declarations”. Words and phrases that have special meaning are shown in quotation marks. The special meanings for these words and phrases are set forth in Definitions.

AGREEMENT This form, subject to all of its “terms”, provides the described insurance coverages during the policy period. In return “you” must pay the required premium. Each of the Principal Coverages described in this policy applies only if a “limit” is shown on the “declarations” for that coverage. This form describes, in the Perils Insured Against section, 4 levels of coverage – LIMITED, BASIC, BROAD, and SPECIAL. The level of coverage that applies to each item listed on the “declarations” will be shown opposite the item. All of the perils listed in this form may not apply to “your” policy.

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DEFINITIONS 1. The words “you” and “your” mean the person or persons named as the insured on the “declarations”. This includes “your” spouse if a resident of

“your” household. 2. The words “we”, “us”, and “our” mean the company providing this insurance. 3. “Actual cash value” means the cost to repair or replace property, using materials of like kind and quality, to the extent practical, less a deduction

for depreciation, however caused. 4. “Aircraft” means an apparatus or a device designed or used for flight, but this does not include: a. a model aircraft that is not designed or used to carry people or cargo; or b. a “hovercraft” or a model hovercraft that is not designed or used to carry people or cargo. 5. “Business” means: a. a trade, a profession, or an occupation, including farming, all whether full time, part time, or occasional. This includes the rental of property

to others, but does not include: 1) the occasional rental for residential purposes of the part of the “insured premises” normally occupied solely by “your” household; or 2) the rental or holding for rental of a portion of that part of the “insured premises” normally occupied by “your” household to no more

than two roomers or boarders for use as a “residence”; or b. any other activity undertaken for money or other compensation, but this does not include: 1) providing care services to a relative of an “insured”; 2) providing services for the care of persons who are not relatives of an “insured” and for which the only compensation is the mutual

exchange of like services; 3) a volunteer activity for which: a) an “insured” receives no compensation; or b) an “insured’s” only compensation is the reimbursement of expenses incurred to carry out the activity; or 4) an activity not described in 1) through 3) above for which no “insured’s” total compensation for the 12 month period just before the first

day of this policy was more than $2,500. 6. “Cosmetic damage” means an alteration in the physical appearance of the metal that does not result in the penetration of water through the

metal and does not result in the failure of the metal to perform the intended function of keeping out the elements over an extended period of time.

7. “Declarations” means all pages labeled declarations, supplemental declarations, or schedule that pertain to this policy. 8. “Domestic employee” means a person employed by an “insured”, or a person leased to an “insured” under a contract or an agreement with a

labor leasing firm, to perform duties that relate to the use and care of the “residence”. This includes a person who performs duties of a similar nature elsewhere for an “insured”, provided such duties are not in connection with an “insured’s” “business”.

However, “domestic employee” does not include a person who is furnished to an “insured”: a. as a temporary substitute for a permanent “domestic employee” who is on leave; or b. to meet seasonal or short-term workloads. 9. With respect to the Incidental Property Coverage for Identity Fraud Expense only, “expenses” means: a. the necessary and reasonable: 1) costs for obtaining, reproducing, or notarizing affidavits or other pertinent documents required by law enforcement agencies, financial

institutions, credit grantors, or credit agencies; 2) costs to send required documentation to law enforcement agencies, financial institutions, credit grantors, or credit agencies; 3) costs for telephone calls to law enforcement agencies, financial institutions, credit grantors, credit agencies, merchants, or legal

counsel; or 4) research fees charged by financial institutions, credit grantors, credit agencies, or merchants; for the purposes of resolving an occurrence of “identity fraud”; b. actual loss of earnings by an “insured” not to exceed a maximum of $250 per day, per “insured”, or a total of $5,000 for lost earnings of all

“insureds”, for time spent away from work to: 1) meet or speak with law enforcement agencies, financial institutions, credit grantors, credit agencies, merchants, or legal counsel; or 2) obtain, reproduce, complete, or notarize affidavits or other pertinent documents required by law enforcement agencies, financial

institutions, credit grantors, or credit agencies; for the purpose of resolving an occurrence of “identity fraud”; c. the necessary and reasonable loan application fees for reapplying for a loan or loans when the original application was rejected solely

because the credit information provided to the prospective lender was inaccurate due to the occurrence of “identity fraud”; and

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d. the necessary and reasonable attorney fees incurred, with “our” prior consent, to: 1) defend lawsuits brought against an “insured” by financial institutions, credit grantors, or merchants or their collection agencies; 2) remove any criminal or civil judgments wrongly entered against an “insured”; or 3) challenge information provided in a consumer credit report that the “insured” believes is inaccurate or incomplete; as a result of an occurrence of “identity fraud”. However, this applies only if FARMOWNERS POLICY is stated on the “declarations”. 10. “Fungi” means any kind or form of fungus, including, but not limited to, mildew, mold, and any chemical, matter, or compound produced or

released by a fungus, including, but not limited to, toxins, spores, fragments, and metabolites such as microbial volatile organic compounds. 11. “Hovercraft” means a self-propelled motorized ground effect machine or air cushion vehicle designed or used to travel over land or water. This

includes, but is not limited to, a flarecraft. However, “hovercraft” does not include: a. a model hovercraft that is not designed or used to carry people or cargo; b. an “aircraft” or a model aircraft that is not designed or used to carry people or cargo; c. a “motorized vehicle”; or d. a “watercraft” or a model watercraft that is not designed or used to carry people or cargo. 12. “Identity fraud” means the use of personal identifying information of an “insured”, without the “insured’s” permission, in a manner that violates

federal, state, or local law, including, but not limited to: a. purchasing goods or services; b. obtaining credit; c. borrowing money; or d. committing a crime. 13. “Insured” means:

a. “you”; b. “your” relatives, if residents of “your” household; c. “your” relatives under the age of 25 years who: 1) are financially dependent upon “you”; 2) are students enrolled in school full time, as defined by the school; and 3) were residents of “your” household just before moving from the “residence” to attend school.

d. persons, other than “your” relatives, under the age of 21 years who reside in “your” household and are in “your” care or in the care of “your” resident relatives; or

e. persons, other than “your” relatives, under the age of 21 years who: 1) are in “your” care or in the care of “your” resident relatives; 2) are students enrolled in school full time, as defined by the school; and 3) were residents of “your” household just before moving from the “residence” to attend school. The phrase an “insured”, whenever it appears in this policy, means one or more “insureds”. 14. “Insured premises” means:

a. the premises described on the “declarations”; b. other land “you” use for farming; and c. new farm premises acquired or leased during the policy period.

15. “Limit” means amount of insurance. 16. “Livestock” means farm animals to include cattle, sheep, swine, goats, horses, mules, donkeys, ponies and hybrids thereof. Cats, dogs and fur-

bearing animals are not considered livestock. 17. “Non-Farm Vehicles” means:

a. automobiles, trucks, semi-trailers, and vehicles designed and licensed for road use, other than farm wagons and farm trailers; b. motorcycles, motorized bicycles or tricycles, mopeds, dirt bikes, and three- or four-wheel all-terrain vehicles; c. mobile homes, motor homes, house trailers, and camper bodies; and d. snowmobiles, “watercraft”, and “aircraft”;

and includes tires, tubes, tracks, parts, or equipment of any of the above. 18. “Motorized vehicle” means:

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a. a self-propelled land or amphibious vehicle regardless of method of surface contact, but this does not include a: 1) “hovercraft” or a model hovercraft that is not designed or used to carry people or cargo; 2) “watercraft” or a model watercraft that is not designed or used to carry people or cargo; or 3) a vehicle designed for recreational use off of public roads; or b. trailer or semi-trailer that: 1) is attached to or being carried on or towed by; or 2) becomes detached while being carried on or towed by; a vehicle described in a. above. 19. “Occurrence” means a covered event that causes damage to property insured under this policy. 20. “Pollutant” means: a. any solid, liquid, gaseous, thermal, or radioactive irritant or contaminant, including acids, alkalis, chemicals, fumes, smoke, soot, vapor,

and waste. Waste includes materials to be disposed of as well as recycled, reclaimed, or reconditioned; b. electrical, magnetic, or electromagnetic particles or fields, whether visible or invisible; and c. sound. 21. “Residence” means a one- to four-family house, or a one- or two-family mobile home used for residential purposes. 22. “Terms” means all provisions, limitations, exclusions, conditions, “declarations”, and definitions that apply to this Property Coverage. 23. “Vermin” means an animal of a type that is prone to enter or burrow into or under a “residence”, building, or structure to seek food or shelter,

including, but not limited to: a. armadillos; b. bats; c. opossums; d. porcupines; e. raccoons; f. skunks; and g. snakes. 24. “Watercraft” means an apparatus or a device primarily designed to be propelled on or in water by engine, motor, or wind, but this does not

include: a. a model watercraft that is not designed or used to carry people or cargo; b. a “hovercraft” or a model hovercraft that is not designed or used to carry people or cargo; c. a “motorized vehicle”; or d. an “aircraft” or a model aircraft that is not designed or used to carry people or cargo. PRINCIPAL PROPERTY COVERAGES Each Principal Property Coverage applies only if a “limit” is shown for that coverage on the “declarations”. COVERAGE A – RESIDENCE 1. “We” cover the “residence” on the “insured premises”. This includes additions attached to the “residence” and built-in components and fixtures,

as well as building materials and supplies located on, or adjacent to, the “insured premises” for use in the construction, alteration, or repair of the “residence” on the “insured premises”.

2. “We” do not cover: a. land, including the land on which covered property is located; b. underground water or surface water; c. private power, light, or electric poles; d. trees, plants, shrubs, or lawns, except as provided under the Incidental Property Coverage for Debris Removal and the Incidental Property

Coverage for Trees, Plants, Shrubs, Or Lawns; or e. grave markers or mausoleums, except as provided under the Incidental Property Coverage for Grave Markers.

3. The “limit” that applies to Coverage A is the most “we” will pay per “occurrence” for all property covered under Coverage A. COVERAGE C - PERSONAL PROPERTY 1. “We” cover personal property owned or used by an “insured”. At “your” option: a. personal property owned by a guest or “domestic employee” is covered while it is in that part of any residential premises occupied by an

“insured”; and b. personal property owned by a person other than a guest or “domestic employee” is covered while it is in that part of the “residence”

occupied by an “insured”.

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2. Limitations On Property At Residential Premises Other Than The Residence – Coverage for personal property usually on residential premises of an “insured” other than the “residence” is limited to 10% of the Coverage C “limit” or $1,000, whichever is greater. However, this limitation does not apply to personal property:

a. that is removed from the “residence” because the “residence” is undergoing alteration, reconstruction, or repair and is unfit for use as a “residence” or a place in which to store property; or

b. in “your” newly acquired principal place of “residence” for 30 days from the date that “you” first move property there. 3. Limitations On Certain Property - The special “limits” shown below do not increase the Coverage C “limit”. The “limit” for each class is the

total “limit” per “occurrence” for all items in that class. a. $250 unless a higher “limit” is shown on the “declarations” on money, bank notes, bullion, gold other than goldware and gold-plated ware,

silver other than silverware and silver-plated ware, platinum other than platinumware or platinum-plated ware, coins, medals, scrip, smart cards, and cards or other devices on which a cash value is stored electronically.

b. $1,500 unless a higher “limit” is shown on the “declarations” on securities, stamps, letters of credit, notes other than bank notes, personal records, tickets, accounts, deeds, evidence of debt, passports, and manuscripts. This special “limit” applies regardless of the medium on which these items exist, and includes the cost of research or other expenses necessary to reproduce, replace, or restore the item.

c. $1,500 unless a higher “limit” is shown on the “declarations” on electronic devices and accessories while in or on a “motorized vehicle” or “watercraft”, if the device can be operated from the electrical system of the “motorized vehicle” or “watercraft” and by another source of power. Accessories include antennas, films, tapes, wires, discs, records, or other media that can be used with such devices.

d. $1,500 unless a higher “limit” is shown on the “declarations” on electronic devices and accessories used primarily for “business” purposes while away from the “insured premises” and not in or on a “motorized vehicle” or “watercraft”, if the device can be operated from the electrical system of a “motorized vehicle” or “watercraft” and by another source of power. Accessories include antennas, films, tapes, wires, discs, records, or other media that can be used with such devices.

e. $1,500 on “watercraft” including their furnishings, equipment, engines, motors, or trailers. However, this does not apply to: 1) model watercraft that are not designed or used to carry people or cargo; or 2) “hovercraft”. f. $1,500 on campers, camper bodies, pickup toppers, and non-farm trailers not otherwise provided for. g. For loss by theft: 1) $2,500 unless a higher “limit” is shown on the “declarations” on jewelry, watches, precious and semiprecious stones, gems, and furs.

If a higher “limit” is shown on the “declarations”, “we” will not pay more than $1,000 for any one article; 2) $2,500 unless a higher “limit” is shown on the “declarations” on silverware, goldware, platinumware, pewterware, and items plated

with gold, silver, or platinum; and 3) $2,500 unless a higher “limit” is shown on the “declarations” on guns and items related to guns. h. For loss to personal property used primarily for “business” (except farming) purposes: 1) $2,500, unless a higher “limit” is shown on the “declarations”, on property while on the “insured premises”; and 2) $500 or 20% of the limit shown on the “declarations” for personal property used for business, whichever is greater, on property while

away from the “insured premises”. However, this special “limit” does not apply to electronic devices and accessories described in c. and d. above.

These special “limits” include the cost of research or other expenses necessary to reproduce, replace, or restore “business” data. i. Subject to c.2) under Personal Property Not Covered, $7,500 on “motorized vehicles” unless a higher “limit” is shown on the “declarations”.

4. Personal Property Not Covered – “We” do not cover: a. property separately described and specifically insured by this or any other policy, regardless of the “limit” that applies to such property

under such insurance; b. animals, birds, fish, or insects;

c. “motorized vehicles”. 1) This includes: a) their parts, equipment, and accessories, other than property described in 3.c. above; and b) electronic devices and accessories that can be operated only from the electrical system of a “motorized vehicle”, including, but

not limited to, antennas, films, tapes, wires, discs, records, or other media that can be used with such devices; while in or on a “motorized vehicle”.

2) However, this does not include a “motorized vehicle”; a) that is designed to assist the handicapped; or b) that is:

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(1) owned by an “insured”; (2) designed only for use off of public roads; and (3) used only to service an “insured premises” or a premises of another;

if such “motorized vehicle” is not required by law or governmental regulation to be registered or designed for use on public roads or property and is not used for “business” purposes, subject to the “limit” described in i. under Limitations On Certain Property;

d. “aircraft”, including their parts and equipment, whether or not attached. However, this does not include model aircraft that are not designed or used to carry people or cargo;

e. “hovercraft”, including their parts or equipment, whether or not attached. However, this does not include model hovercraft that are not designed or used to carry people or cargo;

f. property of roomers, boarders, or other tenants, but this does not include property of roomers or boarders who are related to an “insured”; g. property rented or held for rental to others by an “insured”, but this does not include property in: 1) that part of the “residence” normally occupied solely by “your” household while rented to others on an occasional basis for residential

purposes; or 2) the portion of that part of the “residence” normally occupied by “your” household that is rented or held for rental to no more than two

roomers or boarders for use as a “residence”; h. loss that results from credit cards, electronic fund transfer cards, or electronic access devices that make possible the deposit, withdrawal,

or transfer of funds, except as provided under the Incidental Property Coverage for Credit Card, Electronic Fund Transfer Card or Access Device, Forgery, and Counterfeit Money;

i. grave markers or mausoleums, except as provided under the Incidental Property Coverage for Grave Markers; j. land, including the land on which covered property is located; k. underground water or surface water; l. trees, plants, shrubs, or lawns, except as provided under the Incidental Property Coverage for Debris Removal or the Incidental Property

Coverage for Trees, Plants, Shrubs, Or Lawns; m. farm personal property; or n. private power, light, or electric poles; wells or well pumps; or irrigation systems. 5. Subject to the limitations described in 2. and 3. above, the “limit” that applies to Coverage C is the most “we” pay per “occurrence” for all

property covered under Coverage C. COVERAGE D - ADDITIONAL LIVING COSTS AND LOSS OF RENT 1. “We” pay for the necessary and reasonable increase in living costs “you” incur to maintain the normal standard of living of “your” household if a

part of the “residence” occupied by “your” household is made unfit for use as a “residence” by a loss covered under the Property Coverage. “We” pay only for the period of time reasonably required to make the “residence” fit for use or, if “your” household is permanently relocated, only

for the period of time reasonably required for relocation. This period of time is not limited by the policy period. 2. “We” pay for the fair rental value of that part of the “residence” rented or held for rental to others by “you” if it is made unfit for use as a

“residence” by a loss covered under the Property Coverage. However, “we” will deduct from the fair rental value any charges or expenses that do not continue while the part of the “residence” rented or

held for rental to others is unfit for use. “We” pay only for the period of time reasonably required to repair or replace the part of the “residence” rented or held for rental to others. This

period of time is not limited by the policy period. 3. “We” pay “your” additional living costs and fair rental value as described in 1. and 2. above for up to two weeks if a premises neighboring the

“residence” is damaged from a Peril Insured Against covered by this policy and “you” may not, by order of civil authority, use the “residence”. This period of time is not limited by the policy period.

4. “We” do not pay for loss, cost, or expense due to the cancellation of a lease or an agreement. 5. The “limit” that applies to Coverage D is the most “we” pay for all of the coverages described in 1., 2., and 3. above. COVERAGE E - SCHEDULED FARM PERSONAL PROPERTY 1. “We” cover the classes or items of farm personal property for which a “limit” is shown on the “declarations”. Coverage applies while property is

on the “insured premises”. 2. Unless otherwise specified, coverage for property while away from the “insured premises” is limited to 10% of the applicable “limit” for such

property. This does not increase the “limit”. 3. Described Machinery – “We” cover specifically scheduled items of mobile farm machinery and equipment for which a “limit” is shown on the

“declarations”. The “limits” shown on the “declarations” apply to covered property while on or away from the “insured premises”. a. Replacement Items – “We” cover mobile farm machinery and equipment “you” acquire during the policy period to replace specific items

that are scheduled on the “declarations”. “You” must provide “us” with a complete description of each replacement item and pay any additional premium within 30 days of acquisition. Any premium due will be charged from the date “you” acquire the property.

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The most “we” will pay under this coverage is the smaller of the following: 1) the “limit” shown on the “declarations” for the specific item replaced plus an additional amount up to $25,000 per “occurrence”; or 2) the “actual cash value” of the item.

This coverage applies for 30 days after “you” acquire a replacement item or until “you” report it to “us”, whichever occurs first. This coverage does not extend past the end of the policy period. If “you” do not report a replacement item to “us” within the 30-day period and pay the additional premium, the most that “we” will pay is the “limit” shown for the item replaced.

b. Newly Acquired Property – “We” cover mobile farm machinery and equipment that “you” acquire during the policy period which are not replacement items. “You” must provide “us” with a complete description of each new item and pay the additional premium within 30 days of acquisition. The premium will be charged from the date “you” acquire the property.

“We” cover these items for their “actual cash value”. The most “we” pay for all newly acquired items is $10,000 per “occurrence”. This coverage applies for 30 days after “you” acquire a new item or until “you” report it to “us”, whichever occurs first. This coverage does not extend past the end of the policy period.

“We” do not cover: 1) “non-farm vehicles”; 2) brooders, fences, windmills, windchargers, wind generators, or their towers; manufactured gas, liquefied petroleum gas, gasoline, or

their containers; or 3) bulk milk tanks, bulk feed tanks, barn cleaners, pasteurizers, boilers, or any permanent fixtures attached to or within a building or

structure. 4. Machinery Not Described – When a “limit” is shown on the “declarations” for Machinery Not Described, “we” cover “your” unscheduled mobile

farm machinery and equipment including tools, accessories, and spare parts. The “limit” shown on the “declarations” applies to covered property while on or away from the “insured premises”. “We” pay no more than $2,500 for any one item of covered property. “We” do not cover: a. property which is specifically insured or any property covered under Described Machinery; b. brooders, fences, windmills, windchargers, wind generators, or their towers; c. threshing machines, tractors, combines, corn pickers, hay balers, harvesters, peanut diggers, potato diggers or pickers, cotton pickers,

crop driers, or sawmill equipment; d. manufactured gas, liquefied petroleum gas, gasoline, or their containers; e. bulk milk tanks, bulk feed tanks, barn cleaners, pasteurizers, boilers, or any permanent fixtures attached to or within a building or structure; f. portable buildings or portable structures; g. irrigation equipment, irrigation well pumps, and their motors and control panels; or h. “non-farm vehicles”.

5. Borrowed, Rented, Or Leased Equipment – When a “limit” is shown on the “declarations” for Borrowed, Rented, or Leased Equipment, “we” cover farm machinery and equipment that “you” borrow, rent, or lease from others to use in “your” farming operation. The “limit” shown on the “declarations” applies to covered property while on or away from the “insured premises”. “We” do not cover: a. “non-farm vehicles”; b. dealers’ demonstration machinery, vehicles, or equipment; c. property in which “you” have an interest either as an owner or lienholder; or d. irrigation equipment, irrigation well pumps, and their motors and control panels. “We” do not cover borrowed, rented, or leased farm machinery when coverage for such property is provided elsewhere under this or any other policy “you” may have

6. Livestock – “We” cover specifically scheduled “livestock” for which a “limit” is shown on the “declarations”. “We” also cover classes of “livestock” for which a “limit” is shown on the “declarations”. The “limits” shown on the “declarations” apply to covered “livestock” while on or away from the “insured premises”. The most “we” pay for loss to any one head of “livestock”, other than “livestock” specifically scheduled on the “declarations”, is the smallest of the following amounts: a. 120% of the amount obtained by dividing the “limit” for the affected class of “livestock” by the number of head in that class owned by “you”

at the time of loss;

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b. the “actual cash value” of the “livestock” damaged or destroyed; c. $2,500; or

d. $1,000 on any horse, mule, or head of cattle under one year of age. 7. Poultry – “We” cover specifically scheduled poultry for which a “limit” is shown on the “declarations”. “We” also cover classes of poultry for

which a “limit” is shown on the “declarations”. The “limits” shown on the “declarations” apply to covered poultry while on or away from the “insured premises”. Poultry means chickens, ducks, geese, and turkeys. The most “we” pay for loss to any one bird is its cash market value at the time of loss. “We” do not cover poultry in heated buildings, or turkeys unless specifically scheduled on the “declarations”.

8. Grain – When a “limit” is shown on the “declarations” for Grain, “we” cover grain. This includes threshed seeds, threshed beans, silage, ground feed, and manufactured and compounded stock foods in buildings, structures, wagons, or trucks. This does not include grain under government loan. “We” cover grain in stacks, shocks, swaths, piles, sacks or bags in the open only for loss caused by the perils of fire or lightning.

9. Hay In Buildings – When a “limit” is shown on the “declarations” for Hay in Buildings, “we” cover hay, fodder, straw and other animal bedding that is in a building or structure.

10. Hay In The Open – When a “limit” is shown on the “declarations” for Hay in the Open, “we” cover hay, fodder, straw and other animal bedding in stacks, windrows, and bales in the open only for loss caused by the perils of fire or lightning.

The most “we” pay for loss or damage to hay, fodder, straw and other animal bedding in the open is $15,000 per stack unless a higher “limit” is shown on the “declarations”. A stack means hay, fodder, straw and other animal bedding in one area separated by a clear space of 100 feet or more from any other hay, fodder, straw and other animal bedding in the open.

11. Computers – When a “limit” is shown on the “declarations” for Computers, “we” cover computers, related equipment, commercially purchased software, and media used principally to manage the farm.

12. Farm Operations Records Expenses – When a “limit” is shown on the “declarations” for Farm Operations Records Expenses, “we” cover the expenses “you” incur to reproduce, replace, or restore “your” farm operations records. This includes the research necessary to obtain data. Farm operations records shall include books of account, manuscripts, abstracts, drawings, card index systems, and other records (except film, tape, disc, drum, cell, and other recording or storage media for electronic data processing) pertaining to the operations of the farm.

13. Property Not Covered – Coverage E does not apply to: a. property covered under Coverages A, C, F or G; b. growing crops, standing crops, trees, plants, shrubs, and lawns;

c. devices, accessories, or antennas designed for reproducing, receiving, transmitting, recording or playing back data, sound, or picture while in or on a vehicle, farm machinery or equipment, or “watercraft” unless such device, accessory, or antenna is specifically scheduled on the “declarations” or permanently installed by the manufacturer or dealer in a covered vehicle, farm machinery or equipment, or “watercraft”. This exclusion does not apply to GPS units, crop monitors, or autosteer systems;

d. film, tape, wire, record, or other media for use with any device designed for reproducing, receiving, transmitting, recording, or playing back of data, sound, or picture while in a vehicle, farm machinery or equipment, or “watercraft”. This exclusion does not apply to GPS units, crop monitors, or autosteer systems. There is no coverage for restoration of data;

e. contraband or property used in the course of illegal transportation or trade; f. land, including the land on which covered property is located, underground water, or surface water; or g. while away from the “insured premises”: 1) property in the custody of a common or contract carrier; 2) property stored or being processed in manufacturing plants, public elevators, warehouses, seed houses, or commercial drying plants; 3) property in public sales barns or public sales yards or stockyards; or 4) property at packing plants or slaughter houses. COVERAGE F – UNSCHEDULED FARM PERSONAL PROPERTY 1. When a “limit” is shown on the “declarations” for Coverage F, “we” cover “your” farm personal property that is usual and incidental to the

operation of the farm while such property is on the “insured premises”. 2. Property Away from Premises – Only the following property is covered while away from the “insured premises”: a. grain, threshed seeds, threshed beans, hay, fodder, straw and other animal bedding, silage, ground feed, and manufactured and

compounded stock foods; b. “livestock”; and

c. farm machinery, equipment, implements, tools, and supplies. 3. Special Limits That Apply To Livestock – The most that “we” pay for loss or damage to any one head of “livestock” is the smallest of:

FP-1 (Ed. 7-15) Page 8 of 31

a. the “actual cash value”; b. $2,500; or c. $1,000 on any horse, mule, or head of cattle under one year of age at the time of loss.

4. Special Limitations That Apply To Grain, Hay, Fodder, Straw And Other Animal Bedding a. “We” cover the following for direct physical loss caused only by the perils of fire or lightning:

1) grain, in stacks, shocks, swaths, piles, sacks or bags in the open; 2) unharvested barley, corn, oats, rye, wheat and other grains, flax, soybeans, and sunflowers. This does not include coverage for seed crops, forage crops, straw, or stubble; 3) hay, fodder, straw and other animal bedding in stacks; and 4) hay, fodder, straw and other animal bedding, in windrows and bales in the open.

b. The most “we” pay for loss to property in the open as listed under 4.a.1), 4.a.2), 4.a.3), and 4.a.4) above is 10% of the Coverage F “limit”. This does not increase the Coverage F “limit”.

c. The most “we” pay for loss or damage to hay, fodder, straw and other animal bedding in the open is $15,000 per stack unless a higher “limit” is shown on the “declarations”. A stack means hay, fodder, straw or other animal bedding in one area separated by a clear space of 100 feet or more from any other hay, fodder, straw or other animal bedding in the open.

5. Property Not Covered – Coverage F does not apply to: a. property covered under Coverages A, C, E or G; b. property specifically insured; c. tobacco, cotton, vegetables, root crops, bulbs, fruit, or nursery stock; d. contents of buildings used for the cleaning, grading, sorting, packing, or storage of potatoes, onions, bulbs, or fruits; e. race horses, show horses, or show ponies; f. contents of heated chicken fryer or broiler houses, laying houses, poultry brooder houses, or duck or turkey houses, including poultry

therein; g. fences, windmills, windchargers, wind generators, or their towers; h. “non-farm vehicles”; i. animals other than “livestock”; j. bulk milk tanks, bulk feed tanks, barn cleaners, pasteurizers, boilers, silo unloaders, and any permanent fixtures attached to or within the

building; k. portable buildings or portable structures; l. farm operations records; m. irrigation equipment, irrigation well pumps, and their motors and control panels; n. sawmill equipment; o. borrowed, rented, or leased machinery and equipment; p. trees, plants, shrubs, and lawns; q. growing crops and standing crops, except as covered under 4.a.2) above;

r. devices, accessories, or antennas designed for reproducing, receiving, transmitting, recording or playing back data, sound, or picture while in or on a vehicle, farm machinery or equipment, or “watercraft” unless such device, accessory, or antenna is specifically scheduled on the “declarations” or permanently installed by the manufacturer or dealer in a covered vehicle, farm machinery or equipment, or “watercraft”. This exclusion does not apply to GPS units, crop monitors, or autosteer systems;

s. film, tape, wire, record, or other media for use with any device designed for reproducing, receiving, transmitting, recording, or playing back of data, sound, or picture while in a vehicle, farm machinery or equipment, or “watercraft”. This exclusion does not apply to GPS units, crop monitors, or autosteer systems. There is no coverage for restoration of data;

t. contraband or property used in the course of illegal transportation or trade; u. land, including the land on which covered property is located, underground water, or surface water; v. while away from the “insured premises”: 1) property in the custody of a common or contract carrier; 2) property stored or being processed in manufacturing plants, public elevators, warehouses, seed houses, or commercial drying plants; 3) property in public sales barns or public sales yards or stockyards; or 4) property at packing plants or slaughter houses; w. private power, light, or electric poles; wells or well pumps; or outdoor antennas;

x. the contents of a rice warehouse, rice drying house, cotton gin building belonging to a cotton gin plant or located on gin premises, or FP-1 (Ed. 7-15) Page 9 of 31

machinery, vehicles, implements that are part of these operations; y. animal excrement; or z. any property shown on the “declarations” under Additional Property Not Covered Under Coverage F. COVERAGE G – FARM BARNS, BUILDINGS, AND STRUCTURES 1. “We” cover farm barns, farm buildings, portable buildings and structures, tenant’s improvements and betterments, additional farm dwellings, and

other structures located on the “insured premises” for which a “limit” is shown on the “declarations”. 2. The “limit” for each covered building or structure includes:

a. attached sheds and fixtures (except silos, whether attached or not); and b. all materials and supplies intended for use in the construction, alteration, or repair of that building or structure. These items must be on or

adjacent to the “insured premises”. 3. The “limit” for each additional farm dwelling includes additions, fixtures, and outdoor equipment used for servicing that dwelling. 4. The “limit” for tenant’s improvements and betterments includes permanent fixtures, alterations, decorations, and additions, made or acquired at

“your” expense, which are a part of the described farm barn, farm building, or farm structure. 5. For any one portable building, “we” pay no more than the proportion of the “limit” for portable buildings or structures that the value of each bears

to the total value of all such portable buildings or structures that “you” own at the time of loss. 6. New Construction – “We” cover new, permanent farm barns, farm buildings, or farm structures at the “insured premises”. This includes

materials and supplies for use in their construction. “We” cover only those structures that are not otherwise covered under this or any other policy. “We” cover direct physical loss or damage

caused by the perils of fire or lightning, windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, and vandalism. The most we pay for this coverage is $25,000 per “occurrence”.

This coverage applies for 60 days after the first date of delivery of the materials and supplies or until “you” report the values to “us”, whichever occurs first. This coverage does not extend past the end of the policy period.

“We” will charge “you” an additional premium for the values reported from the date construction begins or the materials and supplies are delivered.

7. Property Not Covered – Coverage G does not apply to: a. property covered under Coverages A, C, E or F; b. contraband or property used in the course of illegal transportation or trade; c. land, including the land on which covered property is located, underground water, or surface water; or d. private power, light, or electric poles; fences; or outdoor antennas.

INCIDENTAL PROPERTY COVERAGES This form provides the following Incidental Property Coverages. They are subject to all of the “terms” of the applicable Principal Property Coverages. These Incidental Property Coverages provide additional insurance unless otherwise stated. Incidental Property Coverages That Apply To Coverages A, C, E, F And G 1. Emergency Removal – “We” pay for direct physical loss to covered property that is moved from a premises to prevent a loss from Perils

Insured Against. The property is covered for up to 30 days, however this coverage does not extend past the date on which this policy expires. “We” pay up to $500 towing charge to move a covered mobile home that is in danger from a Peril Insured Against. This coverage does not increase the “limits” that apply for the property being removed. The Exclusions That Apply To Property Coverages do not apply to such property while removed. 2. Debris Removal

a. “We” pay for the reasonable cost to remove the debris of covered property after a loss. The loss must be caused by a Peril Insured Against that applies to the damaged property. “We” also pay for the reasonable cost to remove volcanic ash, dust, or particulate matter that causes direct physical loss to a covered building or covered property contained in a building. “We” will not pay more for direct physical loss to property and debris removal combined than the “limit” that applies to the damaged property. However, if the covered loss plus the cost of debris removal is more than the applicable “limit”, “we” will pay up to an extra 5% of the applicable “limit” to cover the cost of debris removal.

This coverage does not include any cost or expense to test for, monitor, clean up, remove, contain, treat, detoxify, neutralize or in any way respond to or assess the effects of “pollutants”.

b. Subject to the limitations set forth in c. below, “we” also pay for the reasonable cost to remove from the “insured premises”: 1) “your” fallen tree or trees if the falling of the tree or trees is caused by the peril of: a) Windstorm or Hail; or b) Weight of Ice, Snow, or Sleet (when Broad or Special Coverage is shown as applicable on the “declarations”); 2) a neighbor’s fallen tree or trees if the falling of the tree or trees is caused by any of the Perils Insured Against covered by this policy.

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Regardless of the number of fallen trees, the most “we” pay is $1,000 per “occurrence”. However, “we” pay no more than $500 of this “limit” to remove any one tree.

With respect to this Incidental Property Coverage, the peril of Weight Of Ice, Snow, Or Sleet means the weight of ice, snow, or sleet that causes a tree to fall.

c. The coverage described in b. above applies only to a fallen tree that: 1) causes damage to property covered under Coverage A or C; or 2) obstructs a ramp or other fixture designed to make the “residence” on the “insured premises” accessible to a handicapped person.

3. Fire Department Service Charge – “We” will pay for service charges made by a fire department when called to protect covered property from a Peril Insured Against. The most “we” pay is $500 per “occurrence” unless a higher “limit” for Fire Department Service Charge is shown on the “declarations”.

Incidental Property Coverages That Apply To Coverages A and/or C Only 1. Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery, And Counterfeit Money a. “We” pay for loss if an “insured”:

1) by law must pay for the theft or unauthorized use of credit cards issued or registered in the name of an “insured”; 2) has a loss resulting from the theft or unauthorized use of: a) an electronic fund transfer card; or b) an electronic access device that makes possible the deposit, withdrawal, or transfer of funds; issued or registered in the name of an “insured”; 3) has a loss when checks, drafts, or negotiable instruments are forged or altered; or 4) accepts in good faith counterfeit United States or Canadian paper money.

The most “we” pay is $1,500 per “occurrence” unless a higher “limit” for Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery, And Counterfeit Money is shown on the “declarations”. All losses resulting from a series of acts committed by any one person or in which any one person is involved or implicated is considered one “occurrence”.

b. “We” do not pay for a loss: 1) that results from the use of a credit card, an electronic fund transfer card, or an electronic access device that makes possible the

deposit, withdrawal, or transfer of funds: a) if an “insured” has not complied with the rules under which the credit card, fund transfer card, or access device was issued or

granted; b) by a resident of “your” household; or c) by a person who has the credit card, fund transfer card, or access device with the consent of an “insured”;

2) caused by the dishonesty of an “insured”; or 3) that results from the “business” of an “insured” other than farming. 2. Trees, Plants, Shrubs, Or Lawns – “We” pay for direct physical loss to trees, plants, shrubs, or lawns on the “insured premises” caused by: a. Fire Or Lightning, Explosion, Riot Or Civil Commotion, Aircraft; b. Vehicles if not owned or operated by an occupant of the “insured premises”; or c. Vandalism Or Malicious Mischief Or Theft. “You” may apply up to 5% of the Coverage A “limit” to cover trees, plants, shrubs, or lawns. “We” do not pay more than $500 for each tree,

plant, or shrub. This includes the cost to remove the debris of the covered item. d. “We” do not cover trees, plants, shrubs, or lawns:

1) grown for “business”; or 2) located more than 250 feet from the “residence” covered under Coverage A.

3. Grave Markers – “We” pay up to $2,500 for direct physical loss to grave markers and mausoleums on or away from the “insured premises” caused by a Peril Insured Against described under the Broad Perils section.

With respect to this Incidental Property Coverage, the peril of Weight Of Ice, Snow, Or Sleet includes the weight of ice, snow, or sleet that causes damage to a mausoleum.

4. Glass Or Safety Glazing Material – This Incidental Property Coverage only applies to a “residence” showing BASIC, BROAD, or SPECIAL as applicable on the “declarations”.

a. “We” pay for: 1) the breakage of glass or safety glazing material that is part of a covered “residence” or storm door or window; and 2) direct physical loss to covered property caused only by broken pieces of glass or safety glazing material that, before breaking, was

part of a “residence” or storm door or window.

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b. The Earth Movement exclusion under Exclusions That Apply To Property Coverages does not apply with respect to the coverage described in a. above.

c. Under this Incidental Property Coverage, “we” do not pay for loss: 1) to covered property that occurs because of the breakage of glass or safety glazing material, except as provided in a.2) above; or 2) on the “insured premises” if the “residence” covered under Coverage A was vacant for more than 60 consecutive days just before the

loss. However, this does not apply to loss caused by breakage of glass or safety glazing material that is the direct result of earth movement.

A “residence” being built is not vacant. d. When BASIC coverage is shown as applicable on the “declarations”, the most “we” pay is $100 per “occurrence” (This “limit” is removed

under BROAD or SPECIAL Coverage). This coverage does not increase the “limits” that apply to the property covered. 5. Collapse – This Incidental Property Coverage only applies to a “residence” showing BROAD or SPECIAL as applicable on the “declarations”. a. “We” pay for direct physical loss to covered property involving the abrupt collapse of a “residence” or a part of a “residence” when such

collapse is caused only by one or more of the following: 1) breakage of glass or safety glazing material that is part of a building; 2) insect, rodent, or “vermin” damage to a “residence” or a part of a “residence”, but only if no “insured” knew of or could reasonably be

expected to suspect the presence of such damage prior to the collapse; 3) decay of a “residence” or part of a “residence”, but only if no “insured” knew of or could reasonably be expected to suspect the

presence of such decay prior to the collapse; 4) weight of animals, equipment, people, or personal property; 5) weight of rain that collects on a roof; or 6) the use of defective materials or methods in the construction, repair, or renovation of a “residence” or a part of a “residence” if the

collapse occurs during the course of construction, repair, or renovation. However, “we” do not pay for loss to awnings, bulkheads, cesspools, decks, docks, drains, fences, flues, foundations, patios, paved areas, piers, retaining walls, septic tanks, swimming pools, underground pipes, or wharves caused by a peril described in 1) through 6) above unless the loss is the direct result of the collapse of a “residence” or a part of a “residence”. With respect to loss caused by a peril described in 1) through 6) above, awnings, bulkheads, cesspools, decks, docks, drains, fences, flues, foundations, patios, paved areas, piers, retaining walls, septic tanks, swimming pools, underground pipes, and wharves are not considered to be a “residence” or a part of a “residence”, whether or not such property is attached to, or connected to one or more “residences”.

b. In this Incidental Property Coverage: 1) abrupt collapse of a “residence” or a part of a “residence” means an abrupt caving in, falling in, falling down, or giving way of the

“residence” or the part of the “residence” that prevents the “residence” or the part of the “residence” from being occupied for the purpose for which it was intended just before caving in, falling in, falling down, or giving way.

c. This Incidental Property Coverage does not apply to: 1) a “residence” or a part of a “residence” that has not caved in, fallen in, fallen down, or given way even if it displays evidence of

bending, bowing, bulging, cracking, expansion, inadequate load bearing capacity, leaning, sagging, settling, or shrinkage; 2) a “residence” or a part of a “residence” in danger of caving in, falling in, falling down, or giving way; or

3) a part of a “residence” that has not caved in, fallen in, fallen down, or given way even if it has separated from another part of the “residence”.

d. This coverage does not increase the “limits” that apply to the property covered. e. This Incidental Property Coverage for Collapse is not subject to the Bacteria, Fungi, Wet Rot, Or Dry Rot exclusion under Exclusions That

Apply To Property Coverages. f. When SPECIAL is shown as applicable to the “residence” on the “declarations”, the following provisions are added:

1) The “terms” stated in 5.b. above do not limit coverage for direct loss to covered property caused by a Peril Insured Against under Broad Perils.

2) The Errors, Omissions, And Defects exclusion under Exclusions That Apply To Property Coverages does not apply to this Incidental Property Coverage.

3) With respect to this Incidental Property Coverage, the peril of Weight Of Ice, Snow, Or Sleet means the weight of ice, snow, or sleet that causes damage to a “residence”.

6. Tenant’s Improvements – “We” pay for direct physical loss caused by a peril that applies to Coverage C to improvements to the “residence” on the “insured premises” made or acquired at “your” expense. These are permanent fixtures, alterations, decorations, and additions.

The most “we” pay per “occurrence” is 10% of the Coverage C “limit” unless a higher “limit” is shown on the “declarations”. This coverage does not apply to a “residence” covered under Coverage A.

FP-1 (Ed. 7-15) Page 12 of 31

7. Reasonable Repairs a. “We” pay for the reasonable costs incurred by “you” for necessary measures performed solely to protect covered property from further

damage by a Peril Insured Against if a Peril Insured Against has already caused a loss. b. If the measures described in a. above involve repair to other damaged property, “we” pay only if the property that is repaired is covered by

this policy and only if the damage that necessitates the repair is caused by a Peril Insured Against. This coverage does not: 1) increase the “limit” that applies to the property covered; or 2) relieve “you” of the duties described in 1.b., Protecting Property, under What Must Be Done In Case Of Loss Or Occurrence. 8. Identity Fraud Expense a. This Incidental Property coverage for Identity Fraud Expense applies only if FARMOWNERS POLICY is stated on the “declarations”. b. “We” pay for “expenses” incurred by an “insured” as the direct result of “identity fraud” occurring at any time prior to the end of the policy

period or, in the event of cancellation or termination of the policy or of Identity Fraud Expense coverage, occurring at any time prior to the date of the cancellation or termination, and discovered by the “insured”:

1) during the policy period or, in the event of cancellation or termination of the policy or of this Identity Fraud Expense coverage, prior to the date of the cancellation or termination; or

2) up to one year from the policy expiration date or, in the event of cancellation or termination of the policy or of this Identity Fraud Expense coverage, up to one year from the date of the cancellation or termination.

However, if any “insured” obtains replacement identity fraud expense insurance, “we” do not pay for “expenses” incurred by that “insured” that result from “identity fraud” discovered on or after the effective date of such other insurance, regardless of whether or not such insurance provides coverage for “expenses” arising from “identity fraud” that occurs prior to its effective date.

c. This Identity Fraud Expense coverage applies without regard to whether the person or persons committing the “identity fraud” are identified.

d. With respect to Identity Fraud Expense coverage, discovery takes place when an “insured”: 1) first becomes aware of information which would cause a reasonable person to presume that “identity fraud” has occurred, although

the precise amount or details of the “identity fraud” may not, at that time, be known; or 2) receives notice of an actual or possible claim against him or her asserting facts that, if true, would constitute a covered loss under the

coverage. e. However, “we” do not pay for “expenses”: 1) incurred as a result of “identity fraud” suffered by a “business” of any “insured” other than farming; 2) resulting from “identity fraud” that is committed alone or in collusion with another by: a) any “insured”; or b) a person authorized by an “insured” to act on his or her behalf; 3) arising out of “identity fraud” discovered by an “insured” prior to the inception of this coverage; or 4) arising out of “identity fraud” that is not discovered within one year of the end of the policy period. In the event of cancellation or

termination of: a) this policy; or b) this Identity Fraud Expense coverage;

“we” do not pay for “expenses” arising out of “identity fraud” that is not discovered within one year from the date of the cancellation or termination.

f. The most “we” pay for “expenses” resulting from any one occurrence of “identity fraud” is $5,000 unless a higher “limit” is shown on the “declarations”. With respect to Identity Fraud Expense coverage, a series of acts committed by any one person or in which any one person is involved or implicated is considered one occurrence of “identity fraud”.

g. The Policy Period condition under Conditions Applicable to Property Coverages Only does not apply to this Incidental Property Coverage. Incidental Property Coverage That Applies To Coverage A Only Increased Cost – Ordinance Or Law 1. When loss to the “residence” covered under Coverage A is caused by a Peril Insured Against and “you” elect to repair or replace the damage,

“you” may apply up to 10% of the Coverage A “limit” for the covered “residence” unless a higher percentage is shown on the “declarations” to cover the increased cost that “you” incur due to the enforcement of a code, ordinance, or law that regulates the construction, repair, replacement, or demolition of the damaged “residence”.

2. “You” may use all or part of this Increased Cost – Ordinance Or Law coverage to cover the increased cost “you” incur to remove debris resulting from the construction, repair, replacement, or demolition of the “residence” covered under Coverage A when:

a. loss to the “residence” is caused by a Peril Insured Against; and b. a code, ordinance, or law regulates its construction, repair, replacement, or demolition. FP-1 (Ed. 7-15) Page 13 of 31

This does not increase the “limit” that applies to this Incidental Property Coverage. 3. However, “we” do not pay for: a. any loss in value of property that results from the enforcement of a code, ordinance, or law; or b. any loss, cost, or expense that results from the enforcement of a code, ordinance, or law requiring that an “insured” or others test for,

monitor, clean up, remove, contain, treat, detoxify, neutralize, or in any way respond to or assess the effects of “pollutants”. PERILS INSURED AGAINST This section describes 4 levels of coverage – LIMITED, BASIC, BROAD, and SPECIAL. The level of coverage that applies to each item listed on the “declarations” will be shown opposite the item. All of the perils listed in this form may not apply to “your” policy. LIMITED PERILS When covered property is shown on the “declarations” as having LIMITED applicable, “we” insure the risk of direct physical loss to that property caused by the perils described in this Limited Perils section, unless the loss is excluded under the Exclusions That Apply To Property Coverages. 1. Fire Or Lightning 2. Windstorm Or Hail – However, “we” do not pay for loss:

a. to the interior of a “residence”, building, or structure, or to property inside, caused by dust, rain, sand, sleet, or snow or weight thereof, all whether driven by wind or not, which enter through an opening in the “residence”, building, or structure not made by the direct force of wind or hail;

b. to “watercraft” or their furnishings, equipment, engines or motors, or trailers unless inside a fully enclosed building. “We” do cover canoes, rowboats, kayaks, and paddleboats while on the “insured premises”;

c. caused directly or indirectly by frost, cold weather, ice (other than hail), snow, sleet, or weight thereof, all whether driven by wind or not; d. to “livestock” or poultry caused by: 1) running into streams or ditches or against fences or other objects; 2) smothering; 3) fright; or 4) freezing in blizzards or snowstorms; e. to barley, corn, oats, rye, wheat, and other grain, flax, soybeans, sunflowers, hay, fodder, straw and other animal bedding while outside of

buildings or structures; f. to farm produce in stacks, shocks, or swaths; or g. to the following property: 1) cloth or plastic tarpaulins, silage bags or sheets, or temporary roofs used to cover property in the open; 2) seawalls, property line walls, retaining walls and similar walls; 3) greenhouses, hothouses, slat houses, trellises, pergolas, cabanas and outdoor equipment used for servicing the premises; or

4) wharves, docks, piers, boathouses, bulkheads or other structures located over or partially over water and the property therein or thereon.

h. for “cosmetic damage” caused by hail to the metal exterior surfaces (including underlayment and/or material applied for moisture protection and all flashing) of Farm Barns, Buildings, and Structures, or portable buildings.

3. Explosion – However, “we” do not pay for loss caused by: a. explosion of alcohol stills, steam boilers, steam pipes, steam turbines, or steam engines if owned or leased by “you” or operated under

“your” control; b. shock waves caused by “aircraft”, known as sonic boom; c. electric arcing; d. rupture or bursting of rotating or moving parts of machinery caused by centrifugal force or mechanical breakdown; e. rupture or bursting of water pipes; f. rupture, bursting, or operation of pressure relief devices; or g. rupture or bursting due to swelling of the contents of any “residence”, building, or structure, caused by water. 4. Riot Or Civil Commotion 5. Aircraft – This includes self-propelled missiles and spacecraft. This does not include loss caused by chemicals released or sprayed. 6. Vehicles – This means only loss or damage caused by contact of a vehicle, or an object thrown up by a vehicle, with covered property or with a

“residence”, building or structure containing covered property. However, “we” do not pay for: a. damage to “livestock” or to a fence, driveway, or walk; or b. loss caused by a vehicle owned or operated by an occupant of the “insured premises”, except for loss to property covered under

Coverages A or C. FP-1 (Ed. 7-15) Page 14 of 31

7. Sudden And Accidental Damage From Smoke – This includes sudden and accidental damage from fumes, smoke, soot, or vapors that emit or back up from a boiler, furnace, or related equipment.

However, “we” do not pay for loss caused by smoke from agricultural smudging or industrial operations. 8. Sinkhole Collapse - This means the sudden settlement or collapse of earth supporting covered property. The earth settlement or collapse must

result from subterranean voids created by the action of water on a limestone or similar rock formation. However, “we” do not cover the cost of filling sinkholes. 9. Volcanic Eruption - However, this does not include loss caused by earthquake, land shock waves, or tremors. BASIC PERILS When covered property is shown on the “declarations” as having BASIC applicable, “we” insure the risk of direct physical loss to that property caused by the perils described in the Limited Perils section plus the perils described in this Basic Perils section, unless the loss is excluded under the Exclusions That Apply To Property Coverages. 10. Vandalism Or Malicious Mischief – However, “we” do not pay for loss to property on the “insured premises”: a. caused by vandalism or malicious mischief; or b. that ensues from a wrongful act committed intentionally in the course of vandalism or malicious mischief; if the “residence”, building, or structure was vacant for more than 60 consecutive days just before the loss. A “residence”, building, or structure

being built is not vacant. 11. Theft - This includes attempted theft and loss of property from a known place when it is likely that theft occurred. However, “we” do not pay for loss:

a. caused by theft by an “insured”; b. caused by theft in or to a “residence”, building, or structure being built, or theft of materials or supplies for use in construction of the

“residence”, building, or structure until the “insured premises” on which the “residence”, building, or structure being built is occupied for its intended use;

c. of a precious or semiprecious stone from its setting; d. that results from the theft of: 1) a credit card; 2) an electronic fund transfer card; or 3) an electronic access device that makes possible the deposit, withdrawal, or transfer of funds; except as provided under Incidental Property Coverages for Credit Card, Electronic Fund Transfer Card or Access Device, Forgery, and

Counterfeit Money; e. caused by theft from a part of the “insured premises” rented by an “insured” to a person other than another “insured”; or f. caused by theft that occurs away from the “insured premises” of:

1) trailers or semi-trailers; 2) campers or camper bodies;

3) “watercraft” and their furnishings, equipment, engines or motors; or 4) property while on the part of residential premises which an “insured” owns, rents, or occupies, except for the time while an “insured”

temporarily resides there. “We” do cover the property of an “insured” who is a student while it is in the living quarters occupied by the student at school if the student has been at such living quarters at any time during the 60 days just before the loss;

g. due to voluntary parting with possession of covered property if an “insured” is induced to do so by a trick, scheme, device, or through fraud or false pretense. This includes acceptance of:

1) counterfeit money, or fraudulent post office or express money orders; 2) checks or promissory notes that are not paid upon presentation; or 3) credit cards or debit cards that are illegally obtained and/or used;

h. disclosed on taking inventory; i. by wrongful conversion or embezzlement, infidelity, or any dishonest act by “you”, any “insured”, “your” employees, or persons to whom the

covered property was entrusted; j. by escape, mysterious or unexplained disappearance, unless there is evidence that the property was stolen;

k. due to unauthorized instructions to transfer property to any person or to any place; or l. from premises which are vacant for more than 60 consecutive days just before the loss. 12. Collision – This means:

a. Covered Machinery – “We” pay for loss or damage to covered farm machinery caused by the collision or overturn of that machinery. Collision means accidental contact of the farm machinery with another vehicle or object.

FP-1 (Ed. 7-15) Page 15 of 31

However, “we” do not pay for loss or damage: 1) to tires, tubes or tracks, unless the damage is coincidental with other damage to the farm machinery or equipment; 2) caused by foreign objects taken into any farm machine or mechanical harvester; 3) while farm machinery is used in, or in the practice or preparation for, racing, speed, pulling or pushing, demolition, or stunt activities or

contests; 4) caused by the impact of farm machinery with an object below the surface of the ground; or 5) caused by falling objects.

b. Covered Livestock – “We” pay for death of covered “livestock” caused or made necessary by the collision or overturn of a vehicle on which the “livestock” is being transported. Collision means the accidental contact of the vehicle transporting the “livestock” with: 1) another vehicle, but not a vehicle owned or operated by “you”; or 2) another object.

“We” also pay for death to covered “livestock” caused or made necessary by being struck by a vehicle not owned or operated by “you”. c. Other Covered Personal Property – “We” pay for loss of, or damage to, covered personal property other than farm machinery or

“livestock”, in or on a vehicle, caused by the collision or overturn of that vehicle. Collision means the accidental contact of the vehicle with another vehicle or object.

13. Electrocution Of Livestock - This means loss by sudden and accidental electrocution of “livestock” covered under this policy resulting in the immediate death or destruction of the covered “livestock”.

14. Additional Perils Applying To Livestock (excluding sheep) – “We” pay for loss resulting from the death or necessary destruction of “livestock” (excluding sheep) caused by:

a. accidental shooting; b. drowning, excluding “livestock” less than 30 days of age; c. attack by dogs or wild animals; and

d. collapse of a building. BROAD PERILS When covered property is shown on the “declarations” as having BROAD applicable, “we” insure the risk of direct physical loss to that property caused by the perils described in the Limited Perils and Basic Perils sections plus the perils described in this Broad Perils section, unless the loss is excluded under the Exclusions That Apply To Property Coverages. 15. Falling Objects – However, “we” do not pay for loss to:

a. the interior of a “residence”, building, or structure, or to the property inside a “residence”, building, or structure, unless the falling object has first damaged an outside wall or the roof of the “residence”, building, or structure by impact; or

b. the object that falls. 16. Weight Of Ice, Snow, Or Sleet that causes damage to a “residence”, building, or structure or the property inside a “residence”, building, or

structure. However, “we” do not pay for loss to: a. awnings; b. fences, patios, paved areas, or swimming pools; c. bulkheads, foundations, or retaining walls; or d. docks, piers, or wharves. When weight of ice, snow, or sleet results in physical damage to a covered “residence”, building, or structure having BROAD applicable, “we”

will pay for loss caused by such damage to personal property or farm personal property insured under this policy and contained in the “residence”, building, or structure.

17. Sudden And Accidental Tearing Apart, Cracking, Burning, Or Bulging of a steam or hot water heating system, an air-conditioning, or automatic fire protective sprinkling system or a water heater.

However, “we” do not pay for loss caused by or resulting from freezing, except as provided under the peril of Freezing. 18. Accidental Discharge Or Overflow Of Liquids Or Steam from a plumbing, heating, air-conditioning, or automatic fire protective sprinkling

system; water heater; or domestic appliance. This includes the reasonable cost of removing and replacing those parts of a “residence”, building or structure on the “insured premises” needed to repair the system or appliance.

“We” do not pay for loss: a. caused by continuous or repeated discharge, seepage, or leakage of liquid, or the presence or condensation of humidity, moisture, or

vapor over a period of weeks, months, or years, unless no “insured” knew of or could reasonably be expected to suspect such discharge, seepage, or leakage of liquid or the presence or condensation of humidity, moisture, or vapor;

b. on the “insured premises” if the “residence”, building, or structure has been vacant for more than 60 consecutive days just before the loss. A “residence”, building, or structure being built is not vacant;

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c. caused by or resulting from freezing, except as provided under the peril of Freezing; d. on the “insured premises” caused by accidental discharge or overflow that comes from off the “insured premises”; or e. to the system, or appliance from which the liquid or steam escaped.

In this peril, plumbing systems and domestic appliances do not include sumps, sump pumps, or related equipment, any other type of system designed to remove subsurface water which is drained from the foundation area, or roof drains, gutters, downspouts, or like equipment.

19. Freezing - This means freezing of a plumbing, heating, air-conditioning, or automatic fire protective sprinkling system, water heater, or domestic appliance, subject to the requirements stated in a. and b. below. In this peril, plumbing systems and domestic appliances do not include sumps, sump pumps, or related equipment; any other type of system designed to remove subsurface water which is drained from the foundation area; or roof drains, gutters, downspouts, or like equipment.

a. When the “residence” or building is protected by an automatic fire protective sprinkling system, coverage for loss caused by the peril of Freezing applies only if “you” have taken reasonable care to:

1) maintain heat in the “residence” or building; and 2) continue the water supply. b. When the “residence” or building is not protected by an automatic fire protective sprinkling system, coverage for loss caused by the peril of

Freezing applies only if “you” have taken reasonable care to: 1) maintain heat in the “residence” or building; or

2) shut off the water supply and completely empty water from all systems, heaters, and appliances. 20. Sudden And Accidental Damage From Artificially Generated Electrical Currents – However, “we” do not pay for loss to tubes, transistors,

electronic components, or circuitry that are a part of any type of an apparatus, including, but not limited to, appliances, fixtures, computers, and home entertainment units.

SPECIAL FORM When covered property is shown on the “declarations” as having SPECIAL applicable, “we” insure the risk of direct physical loss, unless the loss is limited or excluded in this Special Form section. 1. Property Not Covered – Special Form does not apply to: a. submersible pumps and sump pumps; b. fertilizer, spray, farm chemicals, veterinary supplies, drugs or medicines, fuel, oil, or grease; c. “motorized vehicles”, recreational motor vehicles, campers, camper bodies, camper trailers, pickup toppers, “watercraft”, “aircraft”, their

equipment, tires, tubes, tracks and parts; d. alcohol producing equipment; e. portable buildings and portable structures; f. threshing machines (not including combines) or sawmill equipment; g. farm operations records expense; h. collectors or other devices designed for making use of solar energy; i. cloth or plastic tarpaulins, silage bags or sheets, or temporary roofs used to cover property in the open; j. “livestock”, poultry, crops, farm products, or any farm produce in stacks, shocks, or swaths; or k. tires, tubes or tracks unless loss is coincidental with other loss covered by this form. For coverage applying to 1.a through 1.k. above, refer to the applicable perils under the Limited Perils, Basic Perils, or Broad Perils sections. 2. Limitations On Certain Property (Coverage C – Personal Property) When Special Form applies to Coverage C – Personal Property, item 3.g. is deleted and replaced by the following: g. For loss by theft, misplacing, or losing:

1) $2,500, unless a higher “limit” is shown on the “declarations,” on jewelry, watches, precious and semiprecious stones, gems, and furs. If a higher “limit” is shown on the “declarations”, “we” will not pay more than $1,000 for any one article;

2) $2,500, unless a higher “limit” is shown on the “declarations,” on silverware, goldware, platinumware, pewterware, and items plated with gold silver, or platinum; and

3) $2,500, unless a higher “limit” is shown on the “declarations,” on guns and items related to guns. 3. Exclusions That Apply To Special Form – “We” do not pay for: a. loss excluded under the Exclusions That Apply To Property Coverages; b. loss caused by windstorm or hail:

1) caused directly or indirectly by frost, cold weather, ice (other than hail), snow, or sleet, all whether driven by wind or not; 2) to the following property: a) seawalls, property line walls, retaining walls and similar walls;

FP-1 (Ed. 7-15) Page 17 of 31

b) greenhouses, hothouses, slat houses, trellises, pergolas, cabanas and outdoor equipment used for servicing the premises; or c) wharves, docks, piers, boathouses, bulkheads or other structures located over or partially over water and the property therein or

thereon; 3) for “cosmetic damage” caused by hail to the metal exterior surfaces (including underlayment and/or material applied for moisture

protection and all flashing) of Farm Barns, Buildings, and Structures, or portable buildings. c. loss caused by explosion in the form of:

1) explosion of alcohol stills, steam boilers, steam pipes, steam turbines, or steam engines if owned or leased by “you” or operated under “your” control;

2) shock waves caused by “aircraft”, known as sonic boom; 3) electric arcing; 4) rupture or bursting of rotating or moving parts of machinery caused by centrifugal force or mechanical breakdown; 5) rupture or bursting of water pipes; 6) rupture, bursting, or operation of pressure relief devices; or 7) rupture or bursting due to swelling of the contents of any “residence”, building or structure, caused by water; d. loss caused by chemicals released or sprayed from “aircraft”;

e. loss or damage caused by contact of a vehicle, or an object thrown up by a vehicle: 1) that causes damage to a fence, driveway, or walk; or

2) that is owned or operated by an occupant of the “insured premises”, except for loss to property covered under Coverages A or C; f. the value of land or the cost of filling sinkholes. However, we will pay for direct physical loss caused by sudden settlement or collapse of

earth supporting covered property. The earth settlement or collapse must result from subterranean voids created by the action of water on a limestone or similar rock formation;

g. loss caused by earthquake, land shock waves, or tremors resulting from volcanic eruption; h. loss caused by freezing of, or the resulting discharge, leakage, or overflow from, a plumbing, heating, air-conditioning, or automatic fire

protection sprinkler system, water heater, or domestic appliance, subject to the exceptions stated in 1) and 2) below: 1) When the “residence” or building is protected by an automatic fire protective sprinkling system, this exclusion does not apply if “you”

have taken reasonable care to: a) maintain heat in the “residence” or building; and

b) continue the water supply. 2) When the “residence” or building is not protected by an automatic fire protective sprinkling system, this exclusion does not apply if

“you” have taken reasonable care to: a) maintain heat in the “residence” or building; or b) shut off the water supply and completely empty water from all systems, heaters, and appliances.

With respect to this exclusion and the exceptions stated in 1) and 2) above, plumbing systems and domestic appliances do not include sumps, sump pumps, or related equipment; any other type of system designed to remove subsurface water which is drained from the foundation area; or roof drains, gutters, downspouts, or like equipment.

i. loss caused by freezing, thawing, pressure, or weight of ice, snow, sleet, or water, whether driven by wind or not, to structures such as: 1) awnings. However, we will pay for loss to awnings that are a part of and attached to a “residence”; 2) fences, patios, paved areas, or swimming pools; 3) bulkheads, footings, foundations, walls, or any other structures or features that support all or part of a “residence”, building, or

structure; 4) bulkheads or retaining walls that do not support all or part of a “residence”, building, or structure; or 5) docks, piers, or wharves.

When weight of ice, snow, sleet, or water results in physical damage to a covered “residence”, building, or structure having SPECIAL applicable, “we” will pay for loss caused by such damage to personal property or farm personal property insured under this policy that is contained in the “residence”, building, or structure.

j. loss: 1) caused by theft by an “insured”; 2) caused by theft in or to a “residence”, building or structure being built, or theft of materials or supplies for use in construction of the

“residence”, building, or structure, until the “insured premises” on which the “residence”, building, or structure being built is occupied for its intended use;

3) that results from the theft of: a) a credit card; b) an electronic fund transfer card; or

FP-1 (Ed. 7-15) Page 18 of 31

c) an electronic access device that makes possible the deposit, withdrawal, or transfer of funds; except as provided under the Incidental Property Coverage for Credit Card, Electronic Fund Transfer Card or Access Device, Forgery,

and Counterfeit Money; 4) caused by theft from a part of the “insured premises” rented by an “insured” to a person other than another “insured”; or 5) caused by theft that occurs away from the “insured premises” of: a) trailers or semi-trailers; b) campers or camper bodies; c) “watercraft” and their furnishings, equipment, engines or motors; or

d) property while on the part of residential premises which an “insured” owns, rents, or occupies, except for the time while an “insured” temporarily resides there. “We” do cover the property of an “insured” who is a student while it is in the living quarters occupied by the student at school if the student has been at such living quarters at any time during the 60 days just before the loss;

6) due to voluntary parting with possession of covered property if an “insured” is induced to do so by a trick, scheme, device, or through fraud or false pretense. This includes acceptance of:

a) counterfeit money or fraudulent post office or express money orders; b) checks or promissory notes that are not paid upon presentation; or c) credit cards or debit cards that are illegally obtained and/or used;

7) disclosed on taking inventory; 8) by wrongful conversion or, embezzlement, infidelity, or any dishonest act by “you”, any “insured”, “your” employees, or persons to

whom the covered property was entrusted; 9) by escape, mysterious or unexplained disappearance, unless there is evidence that the property was stolen;

10) due to unauthorized instructions to transfer property to any person or to any place; or 11) from premises which are vacant for more than 60 consecutive days just before the loss. Theft includes attempted theft, and loss of property from a known place when it is likely that theft occurred; k. loss caused by collision. However, this exclusion does not apply to:

1) Covered Machinery – “We” pay for loss or damage to covered farm machinery caused by the collision or overturn of that machinery. Collision means accidental contact of the farm machinery with another vehicle or object.

However, “we” do not pay for loss or damage: a) to tires, tubes or tracks, unless the damage is coincidental with other damage to the farm machinery or equipment; b) caused by foreign objects taken into any farm machine or mechanical harvester unless the loss or damage is reported to “us”

within 60 days after the “occurrence”. c) while farm machinery is used in, or in the practice or preparation for, racing, speed, pulling or pushing, demolition, or stunt

activities or contests; d) caused by the impact of farm machinery with an object below the surface of the ground; or e) caused by falling objects. 2) Other Covered Personal Property – “We” pay for loss of, or damage to, covered personal property other than farm machinery in or on

a vehicle, caused by the collision or overturn of that vehicle. Collision means the accidental contact of the vehicle with another vehicle or object;

l. loss caused by falling objects to: 1) the interior of a “residence”, building, or structure, or to the property inside a “residence”, building, or structure, unless the falling

object has first damaged an outside wall or the roof of the “residence”, building, or structure by impact; or 2) the object that falls; m. loss to property on the “insured premises” caused by vandalism or malicious mischief, or that ensues from a wrongful act committed

intentionally in the course of vandalism or malicious mischief if the “residence”, building, or structure was vacant for more than 60 consecutive days just before the loss. A “residence”, building, or structure being built is not vacant;

n. loss caused by: 1) continuous or repeated discharge, seepage, or leakage of liquids or steam; or 2) the presence or condensation of humidity, moisture, or vapor, over a period of weeks, months, or years, unless no “insured” knew of

or could reasonably be expected to suspect such discharge, seepage, or leakage of liquids or the presence or condensation of humidity, moisture, or vapor.

Under Exclusions That Apply To Property Coverages, 1)b) and 3) of the Water exclusion that apply to surface water and water below the surface of the ground do not apply with respect to loss caused by continuous or repeated discharge, seepage, or leakage of water from a plumbing, heating, air-conditioning, or automatic fire protective sprinkling system, water heater, or domestic appliance on the “insured

FP-1 (Ed. 7-15) Page 19 of 31

premises” if no “insured” knew of or could reasonably be expected to suspect such discharge, seepage, or leakage of water. Plumbing systems and domestic appliances do not include sumps, sump pumps, or related equipment, any other type of system designed to remove subsurface water which is drained from the foundation area, or roof drains, gutters, downspouts, or like equipment;

o. loss caused by accidental discharge or overflow of liquids or steam from a plumbing, heating, air-conditioning, or automatic fire protective sprinkling system; water heater; or domestic appliance:

1) if the “residence”, building, or structure has been vacant for more than 60 consecutive days just before the loss. A “residence”, building, or structure being built is not vacant; or

2) on the “insured premises” caused by accidental discharge or overflow which comes from off the “insured premises”. “We” do not pay for loss to the system, heater, or appliance from which the liquid or steam escapes. However, “we” will pay the reasonable costs of removing and replacing only those parts of the “residence”, building, or structure needed to repair the system, heater, or appliance. Plumbing systems and domestic appliances do not include sumps, sump pumps, or related equipment, any other type of system designed to remove subsurface water which is drained from the foundation area, or roof drains, gutters, downspouts, or like equipment;

p. loss involving collapse, including but not limited to: 1) an abrupt caving in, falling in, falling down, or giving way; 2) impairment of structural integrity, including but not limited to: a) a danger of caving in, falling in, falling down or giving way; or b) a separation of one or more parts of a “residence”, building, or structure from its other parts; or 3) any bending, bowing, bulging, cracking, expanding, inadequacy of load bearing capacity, leaning, sagging, settling, or shrinking

associated with 1) or 2) above. However, this exclusion does not apply: 1) to the extent that coverage is provided under the Incidental Coverage for Collapse; or 2) to collapse caused by a Peril Insured Against described under Broad Perils.

With respect to this exception, the peril of Weight Of Ice, Snow, Or Sleet means the weight of ice, snow, or sleet that causes damage to a “residence”, building, or structure.

q. loss caused by the settling, cracking, shrinking, bulging or expanding of bulkheads, ceilings, floors, footings, foundations, patios, paved areas, roofs, or walls;

r. loss caused by birds, “vermin”, rodents, insects, or any animals owned or kept by an “insured” except as provided under Incidental Property Coverage for Collapse;

s. loss caused by smoke from agricultural smudging or industrial operations; t. loss caused by glass breakage, except as provided under Incidental Property Coverages – Glass Or Safety Glazing Material; u. loss caused by the discharge, dispersal, disposal, emission, escape, leaching, leakage, migration, release, seepage, or spillage of

“pollutants”; v. loss caused by: 1) wear and tear, marring, or deterioration; 2) mechanical or electrical breakdown, latent defect, inherent vice, or any quality, fault, or weakness in property that causes it to damage

or destroy itself; 3) rust or other corrosion or smog; or 4) pressure from or the presence of roots of trees, plants, shrubs, or other vegetation; w. loss caused by breakage to eyeglasses, glassware, statuary, marble, bric-a-brac, porcelains and similar fragile articles; However, this exclusion does not apply to: 1) jewelry, watches, bronzes, cameras, and photographic lenses; or 2) loss caused by or resulting from fire or lightning; windstorm or hail; smoke (other than smoke from agricultural smudging or industrial

operations); explosion; riot or civil commotion; “aircraft”; vehicles; vandalism or malicious mischief; collapse of a “residence”, building, or structure (or any part of a “residence”, building, or structure) or the impairment of the structural integrity of a “residence”, building, or structure or a part of a “residence”, building, or structure; volcanic action; water not otherwise excluded; theft or attempted theft; sudden and accidental tearing apart, cracking, burning, or bulging of a heating, air-conditioning, or automatic fire protective sprinkling system or water heater; or sinkhole collapse.

x. loss caused by dampness of atmosphere or extremes of temperature, . This does not apply to loss caused directly by rain, snow, sleet or hail;

y. loss to property, other than jewelry, watches, and furs, caused by a refinishing, renovating or repairing process. However, if such process results in a fire or explosion, “we” do cover the loss or damage caused by that fire or explosion; z. loss caused by the weight of a load exceeding the designed capacity of the covered property; aa. loss caused by sudden and accidental damage from artificially generated electrical currents to tubes, transistors, electronic components, or FP-1 (Ed. 7-15) Page 20 of 31

circuitry that are a part of any type of an apparatus, including, but not limited to, appliances, fixtures, computers, and home entertainment units;

ab. loss to a mobile home caused by: 1) contact with a transporting vehicle, or parts or equipment attached to the transporting vehicle, during towing, hitching, or unhitching; 2) collision with another object while the mobile home is in transit; 3) upset while the mobile home is in transit; or 4) sinking or stranding of a “watercraft” on which the mobile home is being transported.

4. Exceptions To Exclusions That Apply To Special Form a. “We” pay for an ensuing loss by Fire, Explosion, Smoke or Glass Breakage which results from any of the above, unless the ensuing loss

itself is excluded. b. Unless the loss is otherwise excluded by this policy, “we” pay for loss to property covered under Coverage A, Coverage C or Coverage G,

that results from liquid or steam that, due to a cause or event excluded under 3.q., 3.r., 3.s., 3.u., or 3.v. above accidentally discharges or overflows from:

1) a storm drain, or a water, steam, or sewer pipe, away from the “insured premises”; or 2) a plumbing, heating, air-conditioning, or automatic fire protective sprinkling system, water heater, or domestic appliance on the

“insured premises”. This includes the reasonable cost of removing and replacing those parts of a “residence”, building or other structure on the “insured premises” needed to repair the system, heater, or appliance.

“We” do not pay for loss to the system, heater, or appliance from which the liquid or steam escaped. In this exception, plumbing systems and domestic appliances do not include sumps, sump pumps, or related equipment; any other

type of system designed to remove subsurface water which is drained from the foundation area; or roof drains, gutters, downspouts, or like equipment.

Under Exclusions That Apply to Property Coverages, 1)b) and 3) of the Water exclusion that apply to surface water and water below the surface of the ground do not apply with respect to loss caused by water covered under this exception.

EXCLUSIONS THAT APPLY TO PROPERTY COVERAGES 1. “We” do not pay for loss or damage caused directly or indirectly by one or more of the following excluded causes or events. Such loss or

damage is excluded regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the loss before, at the same time as, or after the excluded causes or events.

These exclusions apply whether or not an extensive area suffers damage from or is affected by the excluded cause or event. a. Ordinance Or Law – “We” do not pay for:

1) any loss or increased cost which results from the enforcement of a code, ordinance, or law that regulates the construction, repair, or demolition of property or the removal of its debris, except as provided under the Incidental Property Coverage for Increased Cost – Ordinance Or Law;

2) any loss in value of property that results from the enforcement of a code, ordinance, or law; or 3) any loss, cost, or expense that results from the enforcement of a code, ordinance, or law requiring that any “insured” or others test for,

monitor, clean up, remove, contain, treat, detoxify, neutralize, or in any way respond to or assess the effects of “pollutants”. This exclusion applies whether or not there has been physical damage to covered property.

b. Civil Authority – “We” do not pay for loss caused by the confiscation, destruction, or seizure of property by order of civil authority. “We” do pay for loss caused by acts ordered by a civil authority at the time of fire to prevent its spread, but only if loss caused by the fire would be covered by this policy.

c. Nuclear Hazard 1) “We” do not pay for loss caused by nuclear reaction, radiation, or radioactive contamination: a) whether controlled or uncontrolled; or b) however caused; or any consequence of such reaction, radiation, or contamination. 2) Loss caused by nuclear reaction, radiation, or radioactive contamination is not considered loss caused by: a) fire; b) explosion; or c) smoke; even if this policy provides coverage for loss caused by one or more of these perils. 3) Direct physical loss by fire resulting from the nuclear reaction, radiation, or radioactive contamination is covered. d. War And Military Action – “We” do not pay for loss caused by:

FP-1 (Ed. 7-15) Page 21 of 31

1) war, including undeclared or civil war; 2) warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government,

sovereign, or other authority using military personnel or other agents; or 3) insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of

these. With respect to any action that comes within the “terms” of this exclusion and involves nuclear reaction, radiation, or radioactive

contamination, this War And Military Action exclusion supersedes the Nuclear Hazard exclusion. Discharge of a nuclear weapon is deemed a warlike action even if it is accidental. e. Neglect – “We” do not pay for loss caused by the neglect of any “insured” to use all reasonable means to save and preserve covered

property at and after the time of a loss. f. Earth Movement 1) “We” do not pay for loss caused by earth movement whether the earth movement results from, or is caused by, a natural cause, a

manmade cause, or a combination thereof. Manmade causes include but are not limited to: a) construction or excavation activities; b) blasting; c) extracting gas, heat, minerals, oil, steam, water, or any other natural resource, substance, or material from below the earth’s

surface by any process, including but not limited to: (1) hydraulic fracturing; (2) mining; (3) drilling: or (4) geothermal energy extraction; d) injecting any natural resource, substance, or material, including but not limited to water and wastewater, below the earth’s

surface for any purpose; e) storing any natural resource, substance, or material, including but not limited to carbon dioxide, below the earth’s surface; or f) any combination of a) through e) above. 2) In this exclusion, earth movement means any movement of earth, including:

a) earthquake, earth tremor, or earth temblor, including any aftershocks whether manifested in shaking, ground displacement, or otherwise;

b) soil liquefaction whether or not caused by: (1) earthquake; (2) earth tremor; or (3) earth temblor; c) land shock waves or tremors before, during, or after a volcanic eruption; d) landslide, mudflow, or mudslide, including the movement of matter present in or carried or otherwise move by: (1) landslide; (2) mudflow; or (3) mudslide; e) subsidence; or f) any other earth movement, including, but not limited to: (1) earth sinking, rising, or shifting; (2) movement caused by the: (a) expansion; (b) contraction; (c) compaction, whether improper or otherwise; (d) freezing; (e) thawing; or (f) shrinking; of earth; or (3) movement caused by:

FP-1 (Ed. 7-15) Page 22 of 31

(a) erosion; or (b) water below the earth’s surface. However, this does not include Sinkhole Collapse as described under Perils Insured Against. Earth includes but is not limited to ground, soil, sediments, substrates, and strata. 3) With respect to earth movement that results from a manmade cause or a combination of natural and manmade causes, this exclusion

applies: a) whether or not the earth movement results from an error or omission of any person, group, organization, or governmental body

or authority; b) whether or not the cause of the earth movement originates on or under covered property; and c) whether or not the earth movement results from activities being performed at the request of an “insured” or for an “insured’s”

benefit. 4) This exclusion does not apply to: a) direct loss to covered property caused by fire or explosion resulting from earth movement; or b) loss caused by theft that is otherwise covered by this policy.

g. Water 1) “We” do not pay for loss caused by:

a) flood; b) surface water; c) waves, including, but not limited to tidal waves and tsunami; d) tides; e) tidal water; f) overflow of any body of water; or g) spray from a) through f) above; whether driven by wind or not. This includes, but is not limited to, tidal surge, storm surge, and storm tide. 2) “We” do not pay for loss caused by water that enters a “residence”, building, or structure through sewers or drains or that overflows or

is discharged from: a) a sump pump, sump pump well, or related equipment; or b) any other type of system designed to remove subsurface water which is drained from the foundation area. 3) “We” do not pay for loss caused by water below the surface of the ground. This includes, but is not limited to, water that exerts

pressure on, or seeps or leaks through or into a “residence”, building, sidewalk, driveway, foundation, swimming pool, or other structure.

4) “We” do not pay for loss caused by matter present in, or carried, or otherwise moved by water described in 1) through 3) above. 5) “We” do pay for direct loss to covered property caused by fire or explosion resulting from an event excluded in 1) through 4) above. 6) These exclusions do not apply to loss caused by theft that is otherwise covered by this policy. 7) With respect to these exclusions, surface water and water below the surface of the ground do not include water that accidentally

discharges or overflows from a plumbing, heating, air-conditioning, or automatic fire protective sprinkling system, water heater, or domestic appliance on the “insured premises” when loss caused by such water is not otherwise excluded by this policy. Plumbing systems and domestic appliances do not include sumps, sump pumps, or related equipment; any other type of system designed to remove subsurface water which is drained from the foundation area; or roof drains, gutters, downspouts, or like equipment.

h. Power Failure – “We” do not pay for loss caused by the failure of power or other utility service, whether or not it is caused by a Peril Insured Against, if the cause of the failure is not on the “insured premises”.

“We” do pay for direct loss that is otherwise covered by this policy that occurs on the “insured premises” as a result of the failure of power or other utility service.

i. Intentional Acts – “We” do not pay any “insured” for loss which results from any act committed: 1) by any “insured”, alone or in collusion with another; or. 2) at the direction of an “insured”; with the intent to cause a loss. This exclusion applies even with respect to an “insured” who was not involved in the commission or direction of the act that caused the

loss. j. Bacteria, Fungi, Wet Rot, Or Dry Rot – “We” do not pay for loss, cost, or expense caused by, consisting of, or relating to the existence of,

or any activity of, bacteria, “fungi”, wet rot, or dry rot that is not the direct result of a Peril Insured Against. FP-1 (Ed. 7-15) Page 23 of 31

“We” do pay for direct loss to covered property caused by a Peril Insured Against resulting from bacteria, “fungi”, wet rot, or dry rot. k. Business Interruption – “We” do not pay for loss which results from interruption of “business”. l. Virus Or Bacteria – “We” do not pay for loss, cost, or expense caused by, resulting from, or relating to any virus, bacterium, or other

microorganism that causes disease, illness, or physical distress or that is capable of causing disease, illness, or physical distress. This exclusion applies to, but is not limited to, any loss, cost, or expense as a result of: 1) any contamination by the virus, bacterium, or other microorganism; or 2) any denial of access to property because of any virus, bacterium, or other microorganism.

This Virus or Bacteria exclusion supersedes the “terms” of any other exclusions referring to “pollutants” or to contamination with respect to any loss, cost, or expense caused by, resulting from, or relating to any virus, bacterium, or other microorganism that causes disease, illness, or physical distress or that is capable of causing disease, illness, or physical distress. The “terms” of this Virus or Bacteria exclusion, whether or not applicable to any loss, cost, or expense, cannot be construed to provide coverage for a loss, cost, or expense that would otherwise be excluded under this policy.

2. “We” do not pay for loss or damage to property that is caused by one or more of the following excluded causes or events. However, “we” do pay for an ensuing loss to property that is otherwise covered by this policy.

a. Weather Conditions – “We” do not pay for loss caused by weather conditions that initiate, set in motion, or in any way contribute to a cause or event excluded under the preceding Exclusions That Apply To Property Coverages (Numbers 1.a. through 1.l.).

b. Errors, Omissions, And Defects – “We” do not pay for loss caused by one or more of the following: 1) an act or decision of any person, group, organization, or governmental body or authority, or the failure of any person, group,

organization, or governmental body or authority to act or decide; or 2) a defect, a weakness, the inadequacy, a fault, or unsoundness in the: a) development, planning, siting, surveying, zoning; b) construction, compaction, design, grading, remodeling, renovation, repair, specification, workmanship; c) materials used in construction, remodeling, renovation, or repair; or d) maintenance; of any property, whether in whole or in part, and whether on or away from the “insured premises”, except as provided under the

Incidental Property Coverage for Collapse.

WHAT MUST BE DONE IN CASE OF LOSS OR OCCURRENCE 1. The following duties apply when there is loss to covered property. These duties must be performed by “you”, “your” representative, an “insured”

seeking coverage, or the representative of an “insured” seeking coverage. “We” are not obligated to provide the coverages described in this policy if these duties are not performed. a. Notice 1) Prompt notice must be given to “us” or “our” agent. “We” may request written notice. Notice must be given to the police when the loss involves theft. Notice must be given to the credit card, electronic fund transfer card, or electronic access device company when the loss involves a

credit card, an electronic fund transfer card, or an electronic access device. 2) The notice to “us” must state:

a) the name of the “insured”, the policy number, and the time, place, and the details of the loss; and b) the names and addresses of all known potential claimants and witnesses. 3) If Special Form applies to Coverage E - Scheduled Farm Personal Property or Coverage F – Unscheduled Farm Personal Property,

all losses involving the intake of rock(s) or foreign object(s) by harvesting or forage equipment must be reported to “us” immediately. Any losses reported more than 60 days following the “occurrence” will not be honored.

The following statement applies to rented or short term leased (less than 1 year term) harvesting or forage equipment only: Losses must be reported by the “insured” before the rented or short term leased harvesting or forage equipment has been returned to the owner.

b. Protecting Property – All reasonable measures must be taken to protect covered property at and after a covered loss to avoid further loss.

If the property must be repaired, “you” must: 1) make reasonable and necessary repairs to protect the property; and 2) keep an accurate record of the costs of such repairs. c. Cooperation - All “insureds” seeking coverage, and the representative or representatives of all “insureds” seeking coverage must

cooperate with “us” in the investigation of the claim. d. Volunteer Payments - An “insured” must not make payments, pay or offer rewards, or assume obligations or other costs, except at the

“insured’s” own cost. This does not apply to costs that are allowed by this policy. FP-1 (Ed. 7-15) Page 24 of 31

e. Inventory Of Damaged Personal Property – “We” must be given an inventory of personal property involved in a loss that shows, in detail, the:

1) quantity; 2) description; 3) “actual cash value”; and 4) amount of loss. Copies of all bills, receipts, and related documents that confirm the figures stated in the inventory must be attached. f. Showing Damaged Property – As often as “we” reasonably request, “we” must be: 1) shown the damaged property; and 2) allowed to take samples of damaged property for inspection, testing, and analysis. g. Records And Documents – As often as “we” reasonably request, “we” must be: 1) given requested records and documents, including, but not limited to, tax returns and bank records of all cancelled checks that relate

to the value, loss, and costs; and 2) permitted to make copies of such records and documents. h. Examination Under Oath – As often as “we” reasonably request, all “insureds” must: 1) submit to examination under oath in matters that relate to the loss or claim; and 2) sign such statements made under oath. If more than one person is examined, “we” have the right to examine and receive statements separately from each person and not in the

presence of other “insureds”. i. Proof Of Loss – “We” must be given a signed, sworn proof of loss within 60 days after “our” request that: 1) states, to the best of “your” knowledge and belief, the: a) time and cause of the loss; and b) interests of all “insureds” and the interests of all others, including all mortgages and liens, in the property involved in the loss; 2) identifies: a) other policies that may cover the loss; and b) any changes in title or use of the property during the policy period; and 3) provides: a) available plans and specifications of the damaged “residence”, building, or structure; b) detailed estimates for repair; c) the inventory of damaged personal property described in e. above; d) receipts for additional living costs incurred and records that prove the fair rental value; and e) evidence or affidavit supporting a claim under the Incidental Property Coverage for Credit Card, Electronic Fund Transfer Card

Or Access Device, Forgery, And Counterfeit Money and stating the amount and cause of loss. j. Assistance With Enforcing Right Of Recovery – At “our” request, “we” must be given assistance with enforcing any right of recovery

that an “insured” may have against a party causing the loss. k. Other Duties – Identity Fraud Expense – As often as “we” reasonably request, “we” must be: 1) given requested records and documents, including, but not limited to receipts, bills, and other records that prove “expenses” incurred;

and 2) permitted to make copies of such records and documents.

l. Other Duties – Property Coverages - At “our” request the “insured” must provide a veterinarian’s written necropsy report stating what he/she determined caused a covered animal’s death.

HOW MUCH WE PAY FOR LOSS OR OCCURRENCE 1. Our Limit – “We” pay the lesser of: a. the “limit” that applies; or b. the amount determined under the applicable Loss Settlement Terms; regardless of the number of “insureds” with an interest in the property. However, no “insured” will be paid an amount that exceeds his or her interest in the property at the time of loss. 2. Deductible

a. This applies to all Principal Property Coverages and all Incidental Property Coverages except: 1) Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery, And Counterfeit Money; FP-1 (Ed. 7-15) Page 25 of 31

2) the coverage for towing cost provided under the Incidental Property Coverage for Emergency Removal; 3) an optional property coverage that states a specific deductible is applicable; 4) an optional property coverage that states a deductible does not apply; or 5) Fire Department Service Charge. It applies to all Perils Insured Against unless otherwise stated. b. Subject to the “limits” that apply, “we” pay that part of the loss over the deductible. The deductible applies per “occurrence”. When an

“occurrence” affects two or more items with different deductible amounts, the highest deductible amount applies. However, this does not apply to the Incidental Coverage for Identity Fraud Expense. c. The following applies only with respect to the Incidental Property Coverage for Identity Fraud Expense. “We” pay that part of the loss over the deductible. A $100 deductible applies to Identity Fraud Expense coverage. This deductible applies

per occurrence. d. If Special Form applies to Coverage E - Scheduled Farm Personal Property or Coverage F – Unscheduled Farm Personal Property, for all

losses involving the intake of rock(s) or foreign object(s) by harvesting or forage equipment, “we” will subtract a deductible from the amount of loss or damage in any one “occurrence”. The deductible “we” subtract will be the larger of:

1) 25% of the total loss; or 2) the policy deductible shown on the “declarations”. Example 1: Example 2: When: The policy Deductible is $500 When: The policy deductible is $1,000 The Special Form Deductible is the larger of 25% The Special Form Deductible is the larger of 25% of the total loss or the policy deductible of the total loss or the policy deductible The total amount of a covered loss is $3,600 The total amount of a covered loss is $3,600 Step 1a: $3,600 X 25% = $900 Step 1a: $3,600 X 25% = $900 Step 1b: Compare $900 and $2,500 Step 1b: Compare $900 and $2,500 Step 1c: Select the smaller amount = $900 Step 1c. Select the smaller amount = $900 Step 2a: Compare $500 and $900 Step 2a: Compare $1,000 and $900 Step 2b: Select the larger amount = $900 Step 2b: Select the larger amount = $1,000 Step 3: $3,600 - $900 = $2,700 Step 3: $3,600 - $1,000 = $2,600 The most “we” will pay is $2,700. The remaining $900 The most “we” will pay is $2,600. The remaining $1,000 is not covered because of the Deductible. is not covered because of the Deductible. Example 3: Example 4: When: The policy Deductible is $1,000 When: The policy deductible is $5,000 The special form Deductible is the larger of 25% The special form Deductible is the larger of 25% of the total loss or the policy deductible of the total loss or the policy deductible The total amount of a covered loss is $12,000 The total amount of a covered loss is $12,000 Step 1a: $12,000 X 25% = $3,000 Step 1a: $12,000 X 25% = $3,000 Step 1b: Compare $3,000 and $2,500 Step 1b: Compare $3,000 and $2,500 Step 1c: Select the smaller amount = $2,500 Step 1c. Select the smaller amount = $2,500 Step 2a: Compare $1,000 and $2,500 Step 2a: Compare $5,000 and $2,500 Step 2b: Select the larger amount = $2,500 Step 2b: Select the larger amount = $5,000 Step 3: $12,000 - $2,500 = $9,500 Step 3: $12,000 - $5,000 = $7,000 The most “we” will pay is $9,500. The remaining $2,500 The most “we” will pay is $7,000. The remaining $5,000 is not covered because of the Deductible. is not covered because of the Deductible. 3. Loss To A Pair Or Set - If there is a loss to an item that is part of a pair or set, “we” pay only to replace or repair the item, or “we” pay the

difference in the “actual cash value” of the pair or set just before the loss and the “actual cash value” just after the loss. 4. Loss To Parts – If there is a loss to a part of an item that consists of several parts when it is complete, “we” pay only for the value of the lost or

damaged part or the cost to repair or replace it. 5. Failure To Match – No allowance shall be made for loss of appearance caused by failure to match. 6. Special Limit – Electronic Data Processing Software And Media – The most “we” pay for loss to electronic data processing software is the

amount required to replace it as a prepackaged program. The most “we” pay for loss to electronic data processing media, such as cells, discs, drums, film, or tape, is the amount required to replace it in

its unexposed or blank form. 7. Special Limit – Coverage G – Roof And Windmill Head – “We” pay no more than 50% of the “limit” specified on the “declarations” for a silo, FP-1 (Ed. 7-15) Page 26 of 31

metal bin, metal crib, or windmill if there is a covered loss to: a. the roof of the silo, metal bin, or metal crib; or b. the head portion of the windmill. 8. Loss Settlement Terms - Subject to the “terms” shown above, “we” settle losses according to the Actual Cash Value Terms. Replacement

Cost Terms apply only to property shown on the “declarations” as having Replacement Cost Terms applicable. In the Replacement Cost Terms and the Actual Cash Value Terms, replacement cost and cost to repair or replace do not include any increased

cost that results from the enforcement of a code, ordinance, or law, except to the extent that coverage for such increased cost is provided under the Incidental Property coverage for Increased Cost – Ordinance Or Law.

a. Actual Cash Value Terms 1) The Actual Cash Value Terms apply to all property not subject to the Replacement Cost Terms. 2) The smallest of the following amounts is used in applying the “terms” under Our Limit: a) any special “limit” applying; b) the cost to repair or replace the lost or damaged part of the property with materials of like kind and quality to the extent practical; c) the “actual cash value” of the lost or damaged part of the property just before the loss; d) if the usefulness of a metal exterior surface has not been impaired, the amount equal to the difference between the “actual cash

value” just before the loss and the “actual cash value” just after the loss. After the lost or damaged part of the property has been repaired or replaced, and within 180 days after the loss, “you” may make

a claim for an additional amount up to the “actual cash value” of the lost or damaged part of the property; or e) the amount computed after applying the Other Limitations shown below. b. Other Limitations (Pro Rata Distribution Clause) – Coverage E – The Pro Rata Distribution Clause applies to the following classes of

property: 1) Machinery Not Described; 2) Poultry; 3) Grain; 4) Hay in Buildings; 5) Hay in the Open; and 6) Farm Products and Supplies.

Pro Rata Distribution Clause – This applies only when “we” cover two or more farm locations. “We” pay no more than the proportion of the “limit” for the class that the value of the property covered under that class at each farm

location bears to the total value of the property covered under that class at all locations. The value of machinery and supplies acquired, not as replacement items, within the previous 30 days will be excluded from the calculation

above. c. Other Limitations (Coinsurance Clause) – Coverage F – “We” pay no more than that proportion of the loss that the Coverage F “limit”

bears to 80% of the “actual cash value” of the farm personal property at the time of loss. The calculation of the “actual cash value” of farm personal property at the time of loss will not include the value of farm personal property

acquired, not as replacement items, within the previous 30 days. d. Replacement Cost Terms That Apply To Coverages A Or G Only 1) These Replacement Cost Terms apply only to a “residence”, building, or structure shown on the “declarations” as having these

Replacement Cost Terms applicable. They do not apply to: a) window air conditioners; b) awnings and canopies; c) appliances; d) carpets;

e) antennas; f) property line walls, retaining walls or similar walls; or

g) outdoor structures which are not permanent components or fixtures of a building. These include (but are not limited to) swimming pools, fences, gates, feed bunks, silage unloaders, driveways, walks, paved areas, feedlot or loafing area floors, submersible pumps and sump pumps

whether or not attached to a “residence”, building or structure. 2) If the “limit” that applies to the damaged “residence”, building, or structure at the time of loss is less than 80% of its full replacement

cost just before the loss, the following is used in applying the “terms” under Our Limit:

FP-1 (Ed. 7-15) Page 27 of 31

a) if the usefulness of a metal exterior surface has not been impaired, the amount equal to the difference between the “actual cash value” just before the loss and the “actual cash value” just after the loss; or

b) if the damaged metal exterior surface has been repaired or replaced or for any other covered loss, the larger of the following amounts:

(1) the “actual cash value” of the damaged part of the “residence”, building, or structure just before the loss; or (2) that part of the cost to repair or replace the damaged part of the “residence”, building, or structure after application of any

deductible which the “limit” on the damaged “residence”, building, or structure bears to 80% of its full replacement cost just before the loss.

3) If the “limit” that applies to the damaged “residence”, building, or structure at the time of loss is at least 80% of its full replacement cost just before the loss, the smaller of the following amounts is used in applying the “terms” under Our Limit:

a) the amount actually and necessarily spent to repair or replace the damaged part of the “residence”, building, or structure; b) the cost to repair or replace the damaged part of the “residence”, building, or structure: (1) using materials of like kind and quality; and (2) for like use. However, when a damaged “residence”, building, or structure is rebuilt at another location, such cost is limited to the cost that

would have been incurred if the damaged part of the “residence”, building, or structure had been repaired or replaced at the location where the damage occurred.

c) if the usefulness of a metal exterior surface has not been impaired, the amount equal to the difference between the “actual cash value” just before the loss and the “actual cash value” just after the loss.

4) In determining the replacement cost, do not include the cost of: a) excavations; brick, stone, or concrete foundations; piers; footings or features that support all or part of the “residence”, building,

or structure that are: (1) below the undersurface of the lowest basement floor; or (2) below the surface of the ground inside the foundation walls, if there is no basement; and b) underground flues, pipes, wiring, or drains. 5) When the cost to repair or replace exceeds the lesser of $2,500 or 5% of the “limit” that applies to the damaged part of the

“residence”, building, or structure, “we” will pay no more than the “actual cash value” of the loss until repair or replacement is completed. Once repair or replacement is completed, “we” will settle the loss as described in 2) and 3) above.

6) At “your” option, “you” may make a claim under the Actual Cash Value Terms instead of these Replacement Cost Terms. “You” may later make a claim for an additional amount payable under these Replacement Cost Terms, but only if “you” have informed “us” within 180 days after the date of loss, that “you” plan to do so.

e. Replacement Cost Terms That Apply To Personal Property Only 1) These “terms” apply when Coverage C is shown on the “declarations” as having these Replacement Cost Terms applicable. 2) These “terms” apply to the following covered property: a) property covered under Coverage C; b) appliances and window air conditioners; c) carpets and window coverings; d) awnings and canopies; and e) antennas. 3) However, these “terms” do not apply to: a) items of antiquity, art, or rarity that cannot be duplicated; b) memorabilia, souvenirs, collector’s items, and similar items whose age or history contribute to its value; c) items not maintained in good or workable condition; d) items that are outdated or obsolete and are stored or not being used; or e) items covered by any scheduled insurance. Property described in a) through d) above is subject to Actual Cash Value Terms. 4) The smaller of the following amounts is used in applying the “terms” under Our Limit:

a) the cost, at the time of loss, to repair or replace the lost or damaged part of the property with new property of equivalent kind and quality, to the extent practical, without deduction for depreciation; or

b) the full cost, at the time of loss, to repair the damaged part of the property. 5) When the total cost to repair or replace all property involved in any one “occurrence” is more than $500, “we” do not pay for more than

the “actual cash value” of the loss until actual repair or replacement is completed. FP-1 (Ed. 7-15) Page 28 of 31

6) At “your” option, “you” may make a claim under the Actual Cash Value Terms instead of these Replacement Cost Terms. “You” may later make a claim for any additional amount payable under these Replacement Cost Terms but only if “you” have informed “us”, within 180 days after the date of loss, that “you” plan to do so.

9. Insurance Under More Than One Coverage - If more than one coverage of this policy applies to a loss, “we” pay no more than the actual loss, subject to policy “terms”.

10. Insurance Under More Than One Policy a. The following applies to all property coverages except the Incidental Property Coverage for Identity Fraud Expense: 1) If there is other insurance that applies to the loss, cost or expense, other than insurance in the name of an association or a

corporation of property owners, “we” pay “our” share of the loss, cost, or expense. “Our” share is that part of the loss, cost, or expense that the “limit” of this policy bears to the total amount of insurance that applies to the loss, cost, or expense.

However, this does not apply to loss, cost, or expense that is also covered by: a) a home warranty, a service or maintenance plan or agreement, or any other warranty, plan, or agreement that provides for the

repair or replacement of property, even if such warranty, plan, or agreement has the characteristics or qualities of insurance; or b) a government fund. 2) When a loss, cost, or expense is also covered by insurance in the name of an association or corporation of property owners, this

insurance is excess over the “limit” that applies under such other insurance. b. The following applies to the Incidental Property Coverage for Identity Fraud Expense: 1) This insurance is excess over other valid and collectible insurance that covers “expenses” resulting from “identity fraud”. 2) This insurance is also excess over any other form of redress or recompense available to an “insured”, by contract, for his or her

obligation to pay any sums to any person or other entity resulting from an occurrence of “identity fraud”. 11. Warranties And Service Or Maintenance Plans Or Agreements – If loss, cost, or expense covered by this policy is also covered by a home

warranty, a service or maintenance plan or agreement, or any other warranty, plan, or agreement that provides for the repair or replacement of property, this insurance is excess over any amount payable by such warranty, plan, or agreement. This applies even if such warranty, plan, or agreement has the characteristics or qualities of insurance.

12. Government Funds – If loss, cost, or expense covered by this policy is also covered by a government fund, “we” pay “our” share of the loss, cost, or expense. “Our” share is that part of the loss, cost, or expense that the “limit” of this policy bears to the total amount payable for the loss, cost, or expense to the extent permitted by law.

PAYMENT OF LOSS 1. Property Coverages a. Except as provided in 2. below, “we” adjust each loss with “you”. “We” pay an insured loss within 60 days after an acceptable proof of loss

is received and: 1) “we” reach an agreement with “you”; 2) there is an entry of a final judgment; or 3) there is a filing of an appraisal award with “us”.

Payment is made to “you” unless a loss payee or some other person or entity is named in the policy or is legally entitled to receive payment.

b. “We” may: 1) pay the loss in money; or 2) rebuild, repair, or replace the property. “We” must give “you” written notice of “our” intent to do so within 30 days after “we” receive an

acceptable proof of loss. If “we” pay the loss in money, “we” may take all or part of the damaged property at the agreed or appraised value. Property paid for or

replaced by “us” becomes “ours”. c. If the “insured premises” is made unfit for use for more than one month, loss, cost, or expense covered under Coverage D is paid on a

monthly basis. “You” must give “us” proof of such loss, cost, or expense. 2. Damage To Personal Property Of Others - At “our” option, a covered loss may be adjusted with and paid: a. to “you” on behalf of the owner; or b. to the owner. If “we” pay the owner, “we” do not have to pay an “insured”.

POLICY CONDITIONS 1. Abandonment Of Property – “You” may not abandon the property to “us” unless “we” agree. 2. Appraisal - If “you” and “we” do not agree as to the value or the amount of the loss, either may demand an appraisal of such loss. In this event,

“you” and “we” will each select a competent and impartial appraiser within 20 days after receiving a written request from the other. The two appraisers will select a competent and impartial umpire. If they do not agree on an umpire within 15 days, “you” or “we” may ask a judge of a

FP-1 (Ed. 7-15) Page 29 of 31

court of record of the state where the “insured premises” is located to make the selection. A written agreement of the two appraisers will set the amount of loss. If the appraisers fail to agree, they will submit their differences to the

umpire. The written agreement of any two of these three will set the amount of the loss. “You” will pay the expense of “your” appraiser and “we” will pay “our” appraiser. “You” and “we” will share equally the expense of the umpire and the other expenses of the appraisal.

Under no circumstances will an appraisal be used to interpret policy “terms”, determine causation, or determine whether or not a loss is covered under this policy.

3. Assignment - This policy may not be assigned without “our” written consent. 4. Cancellation And Nonrenewal – Refer to state-specific amendatory endorsement for cancellation and nonrenewal provisions. 5. Change, Modification, Or Waiver Of Policy Terms a. A waiver or change of the “terms” of this policy must be issued by “us” in writing to be valid. b. If “we” adopt a revision that broadens coverage under this edition of “our” policy without an additional premium, the broadened coverage

will apply to “your” policy as of the date “we” adopt the revision in the state in which the “insured premises” is located. This applies only to revisions adopted within 60 days prior to or during the policy period shown on the “declarations”.

However, this does not apply to revisions adopted as a part of an overall program revision that both broadens and restricts coverage, whether “we” bring out the program revision by introducing:

1) a subsequent edition of “our” policy; or 2) an endorsement that amends “our” policy. c. “Our” request for an appraisal or examination under oath does not waive policy “terms”. 6. Conformity With Statute – “Terms” in conflict with the laws of the state in which the “insured premises” is located are changed to conform to

such laws. 7. Death – The “terms” in a. and b. below apply if any person named as the “insured” on the “declarations” or that person’s spouse, if a resident of

the same household, dies. a. “We” provide coverage for the legal representative of the deceased person: 1) but only with respect to the deceased person’s premises and property covered by this policy at the time of death; and 2) only to the extent that coverage is provided by this policy. b. “Insured” includes: 1) an “insured” who is a member of the deceased person’s household at the time of the deceased person’s death, but only while a

resident of the “insured premises”; and 2) persons having proper, temporary custody of the deceased person’s covered property, but only with respect to such property and only

until such time as a legal representative is appointed and qualified. 8. Examination Of Books And Records – “We” may examine and audit “your” books and records that relate to this policy during the policy period

and within 3 years after the policy has expired. 9. Inspections – “We” have the right, but are not obligated, to inspect “your” property and operations. This inspection may be made by “us” or may

be made on “our” behalf. An inspection or its resulting advice or report does not warrant that “your” property or operations are safe, healthful, or in compliance with laws, rules, or regulations. Inspections or reports are for “our” benefit only.

10. Loss Payable Clause – With respect to those items of personal property for which a loss payee is shown on the “declarations”, the definition of “insured” is extended to include that loss payee, but only with respect to those items of personal property.

If “we” cancel or do not renew this policy, “we” will so notify, in writing, any loss payees shown on the “declarations”. 11. Misrepresentation, Concealment, Or Fraud - “We” do not provide coverage for any “insured” if before or after a loss:

a. any “insured” has willfully concealed or misrepresented a material fact or circumstance that relates to this insurance or the subject thereof; or

b. there has been fraudulent or false swearing by any “insured” with regard to a matter that relates to this insurance or the subject thereof. This applies even with respect to an “insured” who was not involved in the concealment, misrepresentation, fraudulent conduct, or false swearing.

12. Mortgage, Secured Party, And Lender’s Loss Payable Clause a. If a mortgagee is named on the “declarations”, a loss payable for a covered “residence”, building, or structure will be paid to the mortgagee

and “you” as interests appear. If more than one mortgagee is named, the order of payment will be the same as the order of precedence of the mortgages. The word mortgagee includes trustee.

b. If a secured party is named on the “declarations”, a loss payable on property subject to the security interest will be paid to the secured party and “you”. If there is more than one security interest in the same property, the order of payment will be the same as their order of priority.

However, the secured party’s interest is not covered for “your” conversion, embezzlement, or secretion of encumbered property in “your” possession, unless specifically insured against and premium paid for such.

FP-1 (Ed. 7-15) Page 30 of 31

c. If a lender is named on the “declarations”, a loss payable on property on which the lender has an insurable interest will be paid to the lender and “you”.

d. If “we” deny “your” claim, that denial does not apply to a valid claim of the mortgagee, secured party, or lender if the mortgagee, secured party, or lender has:

1) notified “us” of change in ownership, occupancy, or substantial change in risk of which the mortgagee, secured party, or lender became aware;

2) paid the premium due under this policy on demand if “you” neglected to pay the premium; and 3) submitted a signed, sworn proof of loss within 60 days after receiving notice from “us” if “you” failed to do so. All “terms” of this policy apply to the mortgagee, secured party, or lender unless changed by this clause. e. If “we” cancel or do not renew this policy, “we” will notify the mortgagees, secured parties, or lenders named on the “declarations” at least

ten days before the date cancellation or nonrenewal takes effect. f. Payment To Mortgagee – If “we” pay the mortgagee for a loss and deny payment to “you”, “we” are subrogated, up to the amount “we”

paid for the loss, to all the rights of the mortgagee granted under the mortgage on the property. Subrogation will not impair the right of the mortgagee to recover the full amount of the mortgagee’s claim. At “our” option, “we” may pay to the mortgagee the whole principal on the mortgage plus the accrued interest. In this event, “we” shall receive a full assignment and transfer of the mortgage and all securities held as collateral to the mortgage debt.

g. Payment To A Secured Party – If “we” pay the secured party for a loss and deny payment to “you”, “we” are subrogated, up to the amount “we” paid for the loss, to all the rights of the secured party granted under the security agreement. Subrogation will not impair the right of the secured party to recover the full amount of the security agreement. At “our” option, “we” may pay the secured party the remaining amount due on the security agreement, plus the accrued interest. In this event, “we” shall receive full assignment of the security agreement and securities held as collateral for the agreement.

h. Payment To Lender – If “we” pay the lender for a loss and deny payment to “you”, “we” are subrogated, up to the amount “we” paid for the loss, to the rights of the lender to collect on the debt from “you”. Subrogation will not impair the right of the lender to collect the rest of the debt from “you”. At “our” option, “we” may pay the lender the remaining amount due plus the accrued interest. In this event, “we” shall receive a full assignment of the lender’s interest and any instruments given as security for the debt.

13. No Benefit To Bailee – Coverage under this policy will not directly or indirectly benefit those who are paid to assume custody of the covered property.

14. Policy Period – This policy covers only “occurrences” that take place during the policy period. 15. Recoveries - This applies if “we” pay for a loss and lost or damaged property is recovered, or payment is made by those responsible for the

loss. “You” must inform “us” or “we” must inform “you” if either recovers property or receives payment. Proper costs incurred by either party are paid first. At “your” option. “you” may keep the recovered property. If “you” keep the recovered property, the amount of the claim paid, or a lesser amount to which “we” agree, must be returned to “us”.

If the claim paid is less than the agreed loss due to a deductible, or other limiting “terms”, the recovery is prorated between “you” and “us” based on the interest of each in the loss.

16. Subrogation - If “we” pay for a loss, “we” may require that an “insured” assign to “us” the right of recovery up to the amount “we” pay. “We” are not liable for a loss if, after the loss, an “insured” impairs “our” right to recover against others. An “insured” may waive his or her right to recover, in writing, and before a loss occurs, without affecting coverage.

In the event that “we” require such an assignment, the “insured” must: a. sign and give to “us” all related documents; and b. cooperate with “us”. 17. Suit Against Us - No suit may be brought against “us” unless all the “terms” of this policy have been complied with and the suit is brought

within two years after the loss. If a law of the state where the “insured premises” is located makes this time period invalid, the suit must be brought within the shortest time

period allowed by the law. 18. Volcanic Eruption – All volcanic eruption that occurs within a 72-hour period constitutes a single “occurrence”.

FP-1 (Ed. 7-15) (Includes copyrighted material of AAIS used with their permission.) Page 31 of 31