(December 2022)
The Insurance Services Office (ISO) AG 00 01–Agricultural Capital Assets (Output Policy) Coverage Form is written subject to a single deductible. The standard deductible is $5,000. Higher or lower deductibles are available, up to a maximum of $75,000. This deductible applies on an occurrence basis to direct damage losses. There are exceptions to this within certain additional coverages and coverage extensions.
The single deductible approach may not be appropriate in certain situations. Some insureds may prefer larger deductibles on buildings but a lower one on the business personal property. AG 03 01 is a very flexible deductible endorsement that permits an insured to choose the deductible by coverage, by cause of loss and by location. When this endorsement is used, the rating is modified through deficiency points under Deficiency Category M.
The premises and building numbers used must be the same as the ones on the declarations.
Note: This is very important to remember when policy changes are made and on renewal. The numbers must remain in concert, or the planned application of the deductible could be compromised.
The deductible amount, one of the seven covered causes of loss options, and the property the deductible applies to must also be entered. Two or more entries may be required for each location and building because deductibles can vary based on the cause of loss and/or type of property. The options are numbered, and either the number or the actual wording can be used to describe the option. The options are:
1. All covered causes of loss
This means the same deductible applies to all covered loss or damage to the specific property at the designated location/building.
2. All covered causes of loss except windstorm
or hail
This means all causes of
loss for the specific property have the same deductible applied at the location
or building, but the deductible does not apply if the loss is due to windstorm
or hail. A separate entry must be made for the windstorm or hail deductible.
3. All covered causes of loss except theft
This means that theft is subject to a separate deductible but that all other covered causes of loss at the specific location or building are subject to the deductible amount entered. A separate entry must be made for the theft deductible.
4. All covered causes of loss except
windstorm, hail, theft, and vandalism
This means that windstorm, hail, theft and vandalism are subject to separate deductibles, but all other covered causes of loss at the specific location or building are subject to the deductible amount entered. A separate entry must be made for windstorm, hail, theft, and vandalism.
5. Windstorm or Hail
If either option 2 or option 4 above is selected, this option must be entered on a separate line with a separate deductible amount or one of the windstorm deductible endorsements must be used. If a location/building is scheduled with option 2 or 4 and there is no entry for option 5, that location/building is not subject to a windstorm or hail deductible.
6. Theft
If either option 3 or option 4 above is selected, this option must be entered on a separate line with a separate deductible amount entered to reflect the different deductible that applies to theft.
7. Vandalism
If option 4 above is selected, this option must be entered on a separate line with a separate deductible amount to reflect the different deductible.
Three items added to the deductible section complete this endorsement.
A. If covered property at more than one location sustains loss or damage from a covered cause of loss in a single occurrence, the largest deductible on this endorsement schedule or elsewhere in AG 00 01 applies.
B. If covered property sustains loss or damage from more than one covered cause of loss in a single occurrence, only the largest deductible for any of those causes of loss applies.
C. This endorsement does not apply to deductible provisions elsewhere in AG 00 01 for earthquake, flood, windstorm, hail, or vandalism.
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Example: Fellowship Fisheries is on the coast. His carrier is willing to provide coverage but only with a $100,000 wind/hail deductible on the buildings. Fellowship Fisheries selects a $5,000 deductible for all other causes of loss except for theft, where a $25,000 deductible is selected. The deductible schedule reads as follows: |
||||
|
Location # |
Building # |
Deductible |
Covered Causes Of Loss |
Property Deductible
Applies To: |
|
1-5 |
All |
$5,000 |
2 |
Buildings |
|
1-5 |
All |
$100,000 |
5 |
Buildings |
|
1-5 |
All |
$5,000 |
3 |
Business Personal Property |
|
1-5 |
All |
$25,000 |
6 |
Business Personal Property |