The form explains that certain types of property covered under Coverage C in the Farm Property – Farm Dwellings, Appurtenant Structures And Household Personal Property Coverage Form are subject to the limits shown in Schedules A and B.

B. Coverage Extensions 

1. Newly Acquired Jewelry, "Furs", "Cameras" And "Musical Instruments" 

If, during the policy period, you acquire jewelry, "furs", "cameras" or "musical instruments" of a type already covered under this endorsement, we will cover this property for up to 30 days. The most we will pay for loss of or damage to such property is the lesser of: 

a. 25% of the total Limit Of Insurance shown in the Schedules for that type of property; or 

b. $10,000. You will report such property to us within 30 days of the date of acquisition and will pay any additional premium due. If you do not report such property, coverage will automatically end 30 days after the date of acquisition. 

2. Newly Acquired Fine Arts 

If Limits Of Insurance are shown in the Schedules for fine arts, objects of art that you acquire during the policy period will be Covered Property to the extent of their actual cash value. The most we will pay for loss of or damage to such property is 25% of the Limit Of Insurance shown in the Schedule for fine arts. 

You will report such property to us within 90 days of the date of acquisition and will pay any additional premium due. If you do not report such property, coverage will automatically end 90 days after the date of acquisition.

Analysis

The first category of items discussed is newly acquired jewelry, “furs”, “cameras”, and “musical instruments”. Any new property of this type that is newly acquired will be covered up to 30 days as long as the endorsement already covers that type of property. The most that will be paid is the lesser of 25% of the total limit shown in the schedule for that type of property or $10,000.

Newly acquired property needs to be reported to the insurer within 30 days of acquisition; an additional premium must be paid. If the property is not reported within the 30 days, coverage automatically ends 30 days after the date of acquisition. For example, an insured purchases a new diamond necklace on May 1, for $10,000. The insured fails to report the purchase to the insurer. The insured loses the necklace at a July 4th cookout, and then reports the purchase and loss to the insurer. Since the insured never reported the new jewelry to the insurer during the 30 day period, there is no coverage for the necklace.

There are similar parameters for newly acquired fine arts. Any fire arts acquired during the policy period will be covered up to 25% of the limit of insurance for scheduled fine arts. New acquisitions must be reported to the insurer within 90 days of acquisition, and any required premium must be paid. As with the jewelry, if the new acquisition is not reported, coverage ends 90 days after the date of acquisition.

C. Causes Of Loss And Exclusions 

With respect to the property for which Limits Of Insurance are shown in the Schedules, the Causes of Loss shown in the Declarations as applying to Coverage C – Household Personal Property in the Farm Property – Farm Dwellings, Appurtenant Structures And Household Personal Property Coverage Form and Paragraph E. Exclusions in the Causes Of Loss Form – Farm Property are replaced by the following: 

1. Covered Causes Of Loss 

Covered Causes of Loss means direct physical loss unless the loss is excluded or limited in this endorsement. 

Analysis

This form replaces the causes of loss listed in the Farm Property – Farm Dwellings, Appurtenant Structures And Household Personal Property Coverage Form and Paragraph E. Exclusions in the Causes Of Loss Form – Farm Property form. Because this is a scheduled form, the covered causes of loss are direct physical loss unless the loss is excluded or otherwise limited in this endorsement, thus making this an open perils form. Any type of loss that is not specifically excluded is covered.

2. Exclusions 

We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. 

a. Wear and tear, gradual deterioration or inherent vice. 

b. Insects or vermin. 

c. War, including undeclared or civil war. 

d. 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. 

e. Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these. 

f. Nuclear reaction or radiation, or radioactive contamination, however caused. 

But if nuclear reaction or radiation, or radioactive contamination, results in fire, we will pay for the loss or damage caused by that fire. 

g. If fine arts are covered: 

(1) Damage caused by any repairing, restoration or retouching process; 

(2) Breakage of art glass windows, glassware, statuary, marble, bric-a-brac, porcelains and similar fragile articles. But we will pay for loss by breakage caused by: 

(a) Fire or lightning; 

(b) Explosion, aircraft or collision; 

(c) Windstorm, earthquake or flood; 

(d) Vandalism or theft; or 

(e) Derailment or conveyance; and overturn of a conveyance; and

(3) Any cause whatever to property on exhibition at fairgrounds or premises of national or international expositions, unless the premises are covered by this Policy. 

Analysis

Because this is an open perils policy, exclusions are particularly important. Any loss or damage caused directly or indirectly by the excluded perils is not covered, regardless of any other covered peril that occurs concurrently or in sequence to the loss. This is standard anticoncurrent language.

The exclusions are standard and include wear and tear, deterioration, inherent vice; insects or vermin; war, including undeclared or civil war as well as warlike action by a military force, including defense against actual or expected attack. Also excluded is insurrection, rebellion, revolution, action taken by the government in defending against such actions; nuclear reaction or radiation, or radioactive contamination. If nuclear reaction or radiation, or radioactive contamination results in fire, the loss caused by the resultant fire is covered.

There are particular exclusions for fine arts. Damage caused by any repairs, restoration or retouching is excluded, as is breakage of art glass windows, glassware, statuary, marble, bric-a-brac, porcelains and similar fragile articles. However, if breakage is caused by fire or lightning; explosion, aircraft, collision; windstorm, earthquake or flood; vandalism or theft; derailment or overturn of any conveyance there is coverage. Breakage from such everyday things such as knocking a porcelain figurine off the shelf is not covered, but if there is an earthquake and the figurine is knocked over and broken, there is coverage. Also, any cause whatever to property on exhibition at a fairgrounds or premises of national or international expositions, unless the premises are covered on the policy, then the damage would be covered, regardless of cause.

h. If collections of "postage stamps" or "rare and current coins" are covered: 

(1) Fading, creasing, denting, scratching, tearing or thinning; 

(2) Transfer of colors, inherent defect, dampness, extremes of temperature, or depreciation; 

(3) Any damage from being handled or worked on; 

(4) Disappearance of individual stamps, coins or other articles unless the item is: 

(a) Described and scheduled with a specific Limit of Insurance; or 

(b) Mounted in a volume and the page it is attached to is also lost; 

(5) Any cause whatever to property in the custody of transportation companies; 

(6) Shipments by mail other than registered mail; or 

(7) Any cause whatever to property not part of a stamp or coin collection. 

i. Any cause to golf balls, except for: 

(1) Fire; and 

(2) Burglary, but only if there are visible marks of forcible entry into the building, room or locker in which they were contained at the time of loss.

Analysis

Postage stamps and coins also have special exclusions. These exclusions are related to damage that occurs over time, due to certain exposures such as light, damage from being handled, etc.

Excluded is fading, creasing, denting, scratching, tearing or thinning; transfer of colors, inherent defect, dampness, extremes of temperature or depreciation; and damage from being handled or worked on. Because coins and stamps are small, the disappearance of individual stamps, coins or other articles is excluded unless the items are described and scheduled with a specific limit, or mounted in a volume and the entire page is also lost. Further exclusions include damage to property in the custody of transportation companies; shipment by mail other than registered mail, or any cause to property not part of a stamp or coin collection.

The final exclusion is for golf balls. Everything is excluded except for fire and burglary. Burglary is only covered if there are visible marks of forcible entry into the building, room or locker in which the balls were stored before the loss.

D. Deductible 

No deductible applies to the coverage afforded under this endorsement. 

E. Additional Conditions The following conditions applicable to the insurance afforded under this endorsement are added to Paragraph B. Coverage C Conditions in the Farm Property – Farm Dwellings, Appurtenant Structures And Household Personal Property Coverage Form: 

1. Loss Conditions 

a. Agreed Value We will pay, for each article or property designated in the Schedule, the full amount shown in the Schedule which is agreed to be the value of that article or property. At our request, you will surrender that article or property to us if not lost or stolen.

b. Pair, Set Or Parts Other Than Fine Arts 

(1) Loss To A Pair Or Set In case of a loss to a pair or set, we may elect to: 

(a) Repair or replace any part to restore the pair or set to its value before the loss; or 

(b) Pay the difference between actual cash value of the property before and after the loss. 

(2) Parts In case of loss to any part of Covered Property consisting of several parts when complete, we will pay only the value of the destroyed or damaged part. 

Analysis

No deductible applies to items insured under this endorsement. A number of conditions apply that are added to the existing conditions of the Farm Property - Farm Dwellings, Appurtenant Structures And Household Personal Property Coverage Form under Paragraph B Coverage C Conditions.

The first condition is agreed value. For every item on the schedule, in the event of a loss the amount paid is the amount listed on the schedule. Damaged items are to be turned over to the insurer if it is requested.

If the loss is to something that is a pair or set other than fine arts, coverage provided is to either repair or replace any damaged part that restores the pair or set to its original value, or to pay the difference between the actual cash value of the property before and after the loss. If a pair of earrings is valued at $10,000 before the loss and is only valued at $2,000 after the loss, payment will be for $8,000. However, if covered property consists of several parts when complete, only the value of the damaged or destroyed part is what is paid.

2. Lost Or Stolen Articles 

In the event lost or stolen property is recovered and we have paid you the full amount shown in the Schedule for that property, you will surrender that property to us. 

3. Buyback Of Surrendered Property 

We will, at your request, sell back to you, at a price you and we agree upon, any class of property or scheduled article you surrendered to us to comply with the terms in Paragraph 1. or 2. above. 

4. Premium Adjustment 

We will refund the unearned premium that applies to the scheduled article after the loss or you may apply it to the premium due for the replacement of that article. 

5. General Conditions 

a. Coverage Territory We cover property described in Schedules A and B anywhere in the world. b. Packing Of Fine Arts You agree that the Covered Property will be handled by competent packers. 

Analysis

If any of the scheduled property was lost or stolen and payment was made, if the property is recovered, the insured is to return the property to the insurer. However, if the insured would like to retain the property, he can buy it back if he complies with the policy conditions. If a loss has occurred, any unearned premium will be refunded to the insured, or the insured may apply the amount of premium due to a replacement item.

General conditions address the territory, which is anywhere in the world. Lastly, the insured agrees that any packing of fine arts will be handled by competent packers. Certain types of fine arts may need special packing.

F. Additional Definitions 

The following definitions apply with respect to coverage granted under this endorsement in addition to the definitions in Paragraph C. of the Farm Property – Other Farm Provisions Form – Additional Coverages, Conditions, Definitions: 

1. "Cameras" means cameras, projection machines, films and related equipment. 

2. "Furs" means furs and garments trimmed with fur or consisting principally of fur. 

3. "Golfers' equipment" includes: a. Golf clubs, golf equipment and golf clothing; and b. Your other clothing while contained in a locker when you are playing golf. 

4. "Musical instruments" means instruments and related equipment. musical 

5. "Postage stamps" includes the following owned by, or in the care, custody or control of, the "insured": 

a. Due, envelope, official, revenue, match and medicine stamps; 

b. Covers, locals, reprints, essays, proofs and other philatelic property; and 

c. Books, pages and mountings of items in Paragraphs a. and b. Above.

6. "Rare and current coins" includes the following owned by, or in the care, custody or control of, the "insured": 

a. Medals, paper money, bank notes; 

b. Tokens of money and other numismatic property; and 

c. Coin albums, containers, frames, cards and display cabinets in use with coin collections.

Analysis

Six definitions are added to those found in Paragraph C. of the Farm Property – Other Farm Provisions Form – Additional Coverages, Conditions, Definitions. The first definition is “cameras”, and includes cameras, projection machines, films, and related equipment. Cameras may have various lenses, tripods, cases, and other accessories that would fall under related equipment.

“Furs” are defined as furs and garments trimmed with fur or consisting principally of fur. This provides clarification for garments that are trimmed with fur - they may not be made entirely of fur, but since they are trimmed with fur, they would fall into the same category.

“Golfers’ equipment” includes not just golf clubs, but golf equipment and clothing. Also included is a person’s street clothing while contained in a locker while the person is out playing golf.

“Musical instruments” are just that; musical instruments and related equipment.

“Postage stamps” includes various types of stamps such as due, envelope, official, revenue, match, and medicine stamps, as well as covers, locals, reprints, essays, proofs, and other philatelic property and books, pages, and mounting items. The stamps and accessories must be owned by or in the care, custody, or control of the insured.

“Rare and current coins” again applies to certain property that is either owned by or in the care, custody, or control of the insured. “Rare and current coins” are defined as medals, paper money, bank notes, tokens of money, and other numismatic property, as well as coin albums, containers, frames, cards, and display cabinets in use with coin collections.

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