Safeco has become a major Strategic Partner for SIAA and VIAA. They are writing more and more homes.
Recently one of you was surprised at the opportunity to cover the farming exposure for some of their clients.
Note: some farmers have high values in specialized equipment and buildings…they need a Farm-owners Policy.
We hope this clarifies the opportunity.
Keep in mind every risk is different and you always need to exercise “front-line” underwriting.
Guidelines per Safeco underwriting as of today:
- Truly “Incidental” farming
- NO employees
- Maximum 40 acres
- Maximum 5 animals (horses, cattle, goats/sheep, etc.) – no “exotic” animals
- NO leased out land
- Maximum $15,000 income
- Normal Class 9 & 10 property guidelines—visible to neighbors, not a secondary home, etc.
To add coverage to a Safeco Homeowners quote go to “Coverage Selection” and check the box for “Incidental Farm”.
If in doubt, discuss with underwriter before binding coverage.
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Below is taken from the Safeco Missouri Home Product Guide:
Incidental Farm Coverage
HOM–7377EP Incidental Farming Package
The policy may be extended to provide coverage for
certain exposures presented by eligible incidental or
“hobby” farming.
Additional coverage offered by this option includes:
Section I – Property Coverages
– Coverage B is extended to include other structures
used for farming.
– $10,000 coverage is provided for farm personal
property (such as tools, spreaders, sprayers, etc.).
– $1,000 animal collision coverage is provided
($5,000 aggregate).
Section II – Liability Coverages
– Liability coverage is extended to incidental farming.
– Medical payments coverage is extended to farm
employees injured in the course of their
employment
– Chemical Drift coverage with a limit of $25,000 is
provided.
Additional farm personal property may be scheduled.
See Valuable Articles–Itemized–Farm Personal
Property.
Eligibility
A risk that is otherwise eligible for a homeowners policy
and that has farming operations incidental to a typical
residential situation is eligible for this option.
Photographs of all structures on the premises are
required.
Submit on a non-bound basis:
• risks with more than 10 acres
• risks with more than three horses
• risks with employees or seasonal help
The following exposures are ineligible:
• breeding, boarding, or training of non-owned horses
• providing grazing land for non-owned horses
• horse shows on premises
• horses (owned or non-owned) used for racing, rental
or riding lessons
Liability Premium
$100,000 $ 40
$300,000 $ 91
$500,000 $124
