AG DS 01–AGRICULTURAL CAPITAL ASSETS (OUTPUT POLICY) DECLARATIONS AND SCHEDULES

(December 2022)

INTRODUCTION

The Insurance Services Office (ISO) AG DS 01–Agricultural Capital Assets Program (Output Policy) Declarations is a three-page self-contained form which means that the IL 00 19–Common Policy Declarations is not required unless the coverage form is part of a package. The AG DS 01 can be used alone or with one or more of the following declarations or schedules:

• AG DS 02–Supplemental Declarations amends the limits that AG 00 01–Agricultural Capital Assets Program Coverage Form (Output Policy) provides.
• AG DS 03–Flood Coverage Schedule is used with AG 10 04–Flood Coverage.
• AG DS 04–Earthquake–Volcanic Eruption Coverage Schedule (Sub-limit Form) is used with AG 10 01–Earthquake–Volcanic Eruption Endorsement (Sub-limit Form).

AG DS 01–AGRICULTURAL CAPITAL ASSETS (OUTPUT POLICY) DECLARATIONS

This declarations contains the following information:

General Information

• Company Name Area is for the name of the insurance company that provides coverage.
• Producer Name Area is for the name of the agent or broker that produces the business.

• Named Insured is a list of all named insureds. A separate endorsement may be needed if more space is needed.

Note: The order is important. The first named insured is the one controlling the policy. The first named insured is in charge of paying the premium, collecting return premiums and cancellation or nonrenewing the policy. If the first named insured is deleted, the second named insured takes on the role of the first named insured.

• Mailing Address Area is the mailing street address or Post Office Box number used by the insurance company to communicate with the named insured.

Note: This is the address the insurance company will use to mail important policy-related information.

• Policy period from and to dates must be entered. The policy begins at 12:01 A.M. standard time at the mailing address.
• Business Description

Note: This description has no impact on coverage, but it does provide information as to what the named insured considers its business description.

Agreement

This sentence explains the contractual relationship between the named insured and the insurance company. The insurance company provides the insurance in the policy in return for premium payment. All is subject to terms set out in the policy.

Property Limits of Insurance

The first part of this section has spaces for three separate entries:

• Scheduled Location/Coverage Method. This is used when coverage is written for separate limits at specific locations using AG 14 01–Scheduled Location. No limit is entered, but an X must be placed in the box.
• Blanket Building and Business Personal Property Limit of Insurance. A limit must be entered, and an X placed in the box.

• Blanket Household Personal Property Limit of Insurance. A limit must be entered, and an X placed in the box.

The second part is very important because all of the following are listed as property not covered in the policy unless a limit is entered for it on the declarations. The entered limit is a sublimit of the Property Limits of Insurance listed above.

• Harvested Tobacco

• Harvested Cotton
• Harvested Vegetables
• Harvested Root Crops
• Harvested Potatoes
• Harvested Bulbs
• Harvested Fruits
• Nursery Stock

Property Coverage Options

This section lists optional property coverages available. Any, all, or none can be selected.

• Actual Cash Value

This changes the valuation from replacement cost to actual cash value.

• Automatic Increase Coverage Percentage

An entry is required only if more than a 2% increase is needed.

• Replacement Cost–Household Personal Property

This changes the valuation for household personal property from actual cash value to replacement cost.

• Replacement Cost–Mobile Equipment

This changes the valuation for mobile equipment from actual cash value to replacement cost.

• Installment Sales Property–Dual Interest

This changes the installment sales coverage from single interest coverage that protects only the named insured to a dual interest coverage that protects both the named insured and the purchaser of the property.

• Limited Fungi, Wet Rot, and Dry Rot Coverage

This provides limits above the standard $15,000 in the coverage form. If the Separate Schedule Location Option is marked yes, a limit must be entered for each described location instead of entering one limit for all fungi, wet rot, or dry rot coverage.

Business Income and Extra Expense/Dwelling Loss of Use Limits of Insurance

This section has spaces for three separate entries. This is optional coverage, so entries are only entered if this coverage is desired:

• Blanket Business Income and Extra Expense Limit. A limit must be entered, and an X placed in the box.
• Dwelling Loss of Use Limit. A limit must be entered, and an X placed in the box.
• Scheduled Location/Coverage Method. This is used when coverage is written for separate limits at specific locations using AG 14 01–Scheduled Location. No limit is entered, but an X must be placed in the box.

Business Income Coverage Options/Extensions

If business income and extra expense coverage is purchased, one of the following three options must be selected by placing an X in the box.

• Business Income and Extra Expense including Rental Value
• Business Income and Extra Expense Other Than Rental Value
• Rental Value and Extra Expense

A place is provided to select Dwelling Loss of Use, but that coverage should have been selected in the prior section with a limit of insurance. Having a second entry in this section is confusing and could be problematic, especially if an entry is selected in this section and not in the above because there would be no limit of insurance.

These options are available but are not mandatory.

• Number of Days for Extended Business Income Coverage

This is the total number of days and replaces the 90 days in the policy.

• Number of Days for Limited Fungi, Wet Rot, And Dry Rot Coverage–Business Income and Extra Expense Revised

This is the total number of days and replaces the 90 days in the policy.

• Coinsurance Percentage

An entry is required unless maximum period of indemnity or monthly limit of indemnity below is selected.

Business Income and Extra Expense Valuation Options

Only one of the following valuation options may be selected to replace the coinsurance method in the policy.

• Maximum Period of Indemnity
• Monthly Limit of Indemnity

The options are 1/3, 1/4, and 1/6.

• Agreed Value

A limit must be entered in the space provided.

Deductibles

This section has spaces for two different deductibles:

• Deductible for Other Than Dwellings and Household Personal Property
• Deductible for Dwellings and Household Personal Property

Miscellaneous

This section has spaces available for the following entries:

• Endorsements Effective as of Policy Period Inception Date
• Description of Fine Arts in Transit

Fine arts are not covered while in transit unless entry is made in this section.

• Description of Valuable Papers and Records

Note: Valuable Papers and Records that are considered irreplaceable property are excluded unless they are described in this section.

• Mortgagee and Loss Payee Name
• Mortgagee and Loss Payee Mailing Address
• Other
• Total Premium at Policy Inception

AG DS 02–SUPPLEMENTAL DECLARATIONS (04 13 changes)

This supplemental declarations amend the limits that the ISO Agricultural Capital Assets (Output Policy) Coverage Form provides. If a limit of insurance for one of the following coverages is selected, it is per occurrence subject to exceptions outlined below.

Note: These limits replace the limits for the same coverage that the coverage form provides. They are not in addition to them. Some of these coverages are sub-limits to the limit of insurance. Regardless of the limit on this schedule, it remains a sub-limit to the overall policy limit.

Editorial Note: The default limit and whether the limit is a sublimit is shown next to the coverage below for your reference.

• Accounts Receivable ($100,000)
• Below Ground Water and Backup of Sewers and Drains (No limit found)
• Business Personal Property Off Covered Location ($100,000)
• Consequential Loss ($50,000)
• Debris Removal Additional Limit of Insurance ($50,000 sublimit)
• Employee Theft ($25,000)
• Fine Arts–Business Personal Property ($100,000)
• Fine Arts–Household Personal Property ($5,000)
• Fire Department Service Charge ($10,000 sublimit)
• Fire Extinguishing Systems Expense ($50,000)
• Forgery or Alteration ($25,000)
• Inventory and Appraisal Expense ($50,000)
• Money and Securities (04 13 change)

The 09 07 edition had only one space to enter a limit per occurrence. The 04 13 edition has the following spaces:

• Inside Covered Buildings/Per Occurrence ($25,000)
• Outside Covered Buildings/Per Occurrence ($10,000)
• Ordinance or Law–Demolition Cost ($100,000 sublimit)
• Ordinance or Law–Increased Cost of Construction ($100,000 sublimit)
• Personal Effects ($10,000 sublimit)
• Pollution Cleanup and Removal ($50,000)

This Limit of Insurance applies at each covered location for each separate 12-month policy period.

• Property in Transit ($50,000)
• Reward Payment ($10,000 sublimit)
• Theft of jewelry, watches, watch movements, jewels, pearls, precious and semi-precious stones, bullion, gold, silver, platinum, and other precious alloys or metals ($5,000 sublimit)
• Valuable Papers and Records ($100,000)
• Hay, Straw, and Fodder Outside
• Theft of platinumware, goldenware, silverware, pewterware, and property made of such materials ($5,000 sublimit)
• Theft of firearms and related equipment ($2,500/$10,000 sublimit)

These Limits of Insurance are Per Firearm and Annual Aggregate.

• Installment Sales Property ($50,000)
• Credit Card and Electronic Funds Transfer Cards or Other Access Devices; Forgery; Counterfeit Currency ($500)
• Business Income and Extra Expense–Food Contamination ($25,000 sublimit)
• Business Income and Extra Expense–Food Contamination Advertising Expense ($10,000 sublimit)
• Limited Coverage For Fungi, Wet Rot, and Dry Rot ($15,000 aggregate sublimit)
• Bulk Liquid Tank Storage ($50,000/$100,000)

These Limits of Insurance are Per Occurrence and Annual Aggregate.

• Money Orders and Counterfeit Currency ($5,000)
• Business Personal Property Temporarily in Portable Storage Units (04 13 addition) ($50,000)
• Electronic Data (04 13 addition) ($100,000 sublimit)
• Interruption of Computer Operations (Time Element) (04 13 addition) ($50,000 aggregate sublimit)
• Newly Acquired Location (Time Element) (04 13 addition) ($250,000)

AG DS 03–FLOOD COVERAGE SCHEDULE

This schedule is used with AG 10 04–Flood Coverage.

Related Article: AG 10 04–Flood Coverage

AG DS 04–EARTHQUAKE–VOLCANIC ERUPTION COVERAGE SCHEDULE

This schedule is used with AG 10 01–Earthquake–Volcanic Eruption.

Related Article: AG 10 01–Earthquake–Volcanic Eruption