A few months ago, today's insured decided to jump into the latest trend for a lot of suburban dwellers, and he got some chickens! He built a chicken coop and a caged in area for the chickens to be safe from predators. The coop itself looks like a very large shed with a fenced-in area extending from the coop. The insured calls up their agent to ask if there's coverage for the coop under their HO 00 03 03 22 policy covering their home and an attached garage.
Notable Timestamps
[00:00] - A homeowner built a large chicken coop and asked their insurer whether it was covered under their 2022 homeowners policy.
[02:00] - The hosts dive into trivia, noting that chickens are genetically the closest living relatives to the T-Rex.
[05:00] - Coverage depends on construction: a coop attached to the house may fall under Coverage A, but detached coops lean toward Coverage B or C.
[07:30] - One key test is portability: if the coop can move with the owner, it likely counts as personal property under Coverage C.
[10:00] - Courts consider a variety of factors, e.g. how the coop is affixed, its adaptation for use, and the owner's intent to keep or move it.
[12:30] - Some coops are deliberately not anchored to protect against flooding or predators, adding complexity to coverage classification.
[14:25] - Similar issues arise with swing sets, pools, and other backyard structures—each must be evaluated individually.
[15:15] - Selling eggs could cross the line into business use, potentially excluding coverage under standard homeowner policies.
[18:00] - Coverage type affects settlement: Coverage B buildings may qualify for replacement cost, while Coverage C property is typically ACV.
[20:00] - Beth provides a recap of the points above.
Your PLRB Resources
Coverage Question: Other Structures Used for Business – Raising Chickens
https://www.plrb.org/documents/other-structures-used-for-business-raising-chickens/
Other Structures: Can Some Items Be Treated As Either Coverage A Or Coverage B Property?
https://www.plrb.org/documents/other-structures-can-some-items-be-treated-as-either-coverage-a-or-coverage-b-property-pcq-2022-01-17-jem-a/?search=other%20structures
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The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.
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