4. Livestock
The insurance company covers
specifically scheduled livestock if there is a limit for it on the declarations.
|
Example:
|
|
Described
Livestock
|
Limit
|
Premium
|
|
“Billy’s
Pride” (Charolais Bull)
|
$12,000
|
$129
|
This item also covers
classes of livestock with a limit on the declarations. The limit applies to
covered livestock when on or away from the insured premises. The most paid for
loss to any one head of livestock (other than any specifically scheduled with a
specific value) is the least expensive of the following options:
·
$2,500
·
The damaged or
destroyed livestock’s actual cash value
·
120% of the amount
calculated by dividing the limit for the livestock class that sustained loss by
the number of head in that class that the insured owned at the time of loss
The
maximum limit available for a single head of livestock not specifically listed
and described is the lesser of$2,500, the livestock’s actual cash value, or the
amount determined by a formula. The formula is: Insurance limit for class of
livestock ÷ number of head in that class x 120% = limit of insurance for each Individual
head of livestock.
|
Example: The
insurance limit is $15,000 for ten head of beef cattle. If a covered cause of
loss destroys one of them, the maximum amount paid is the smallest of the
following:
$2,500
$1,825 (market price for
head of cattle at the date of loss)
* $1,800
|
|
*
$1,800: Determined by formula: ($15,000 ÷ 100) x 120% = $1,800
|
Note: An individual horse,
head of cattle, or mule less than one year old is counted as one-half head.
Newly
Acquired Livestock
This provision covers
livestock that the insured purchases or borrows during the policy period.
However, new acquisitions must be of a similar class to a class scheduled on
the declarations. The named insured must report newly acquired livestock to the
insurance company within 30 days of the acquisition date and pay any additional
premium. Premium is charged from the date the livestock was acquired. The
insurance company does not pay more than 25% of the total of the limits on the
declarations for all covered livestock. Coverage applies for 30 days from the date
the livestock was acquired or until reported to the insurance company,
whichever occurs first. However, coverage does not extend past the policy’s
expiration date.
|
Example: Farmer Ben Sheersum’s FO–6 Farm
Coverage had a $30,000 limit for his flock of Rambouillet sheep. No other
class or individual animals were listed. Ben borrowed several Columbia rams
from a friend in order to try some crossbreeding. He also bought several
goats to be handled by a new shepherd he recently hired to manage another area
of pastureland. One morning, Ben discovered that his new shepherd was a thief
who made off with the goats and his friend’s rams. Ben did not inform the
insurance company of the rams or the goats. Since the theft occurred within
30 days of Ben borrowing the rams, the sheep loss was covered. However, he
could not recoup the loss of the goats because there were no goats listed.
|
|
