United States 

Department of 

Agriculture

Federal Crop

Insurance

Corporation

FCIC-25760 (02-2024)

NURSERY VALUE 

SELECT PILOT

LOSS ADJUSTMENT 

STANDARDS 

HANDBOOK

2025 and Succeeding Crop Years
THIS PAGE IS INTENTIONALLY LEFT BLANK
February 2024 FCIC-25760 TP 1 

UNITED STATES DEPARTMENT OF AGRICULTURE

FARM PRODUCTION AND CONSERVATION

RISK MANAGEMENT AGENCY

TITLE: NURSERY VALUE SELECT PILOT LOSS 

ADJUSTMENT STANDARDS HANDBOOK

NUMBER: FCIC-25760

OPI: Product Administration & Standards Division

EFFECTIVE DATE: 2025 and Succeeding Crop Years ISSUE DATE: February 29, 2024

SUBJECT:

Provides procedures and instructions for 

administering the Nursery Value Select Pilot crop 

insurance program.

APPROVED: 

/s/ John W. Underwood for

Deputy Administrator for Product Management

REASON FOR ISSUANCE

This handbook is being issued to provide procedures and instructions for administering the Nursery Value 

Select crop insurance program for the 2025 and succeeding crop years. This handbook replaces the 2023 

Nursery Value Select Pilot Loss Adjustment Standards Handbook, FCIC-25760 (02-2022). This handbook is 

effective for the 2025 and succeeding crop years and is not retroactive to any 2024 or prior crop year 

determinations. 

SUMMARY OF CHANGES

Listed below are the changes to the 2025 FCIC-25760 Nursery Value Select Pilot Loss Adjustment Standards 

Handbook with significant content change. All changes, and additions are highlighted. Minor changes and 

corrections are not included in this listing. *** used throughout the handbook indicate where major deletions 

occurred. 

Reference Description of Change

Entire Handbook Updated to the revised External Handbook Standards.

Entire Handbook Changed “actuarial documents” to “SP” for Special Provisions, as appropriate.

Entire Handbook Changed the word “rejected” to “not accepted”.

Para 1C Updated Civil Rights Act of 1964.

Para 1D Updated Related Handbooks table.

Para 11(10)(g) and (h) Removed the text, “unless otherwise provided in the actuarial documents”.

Para 28, Step 9 Removed the text, “the product of the approved sales value and”.

Exhibit 3, Item 22 Removed the text, “from the SP”.

Exhibit 4, Items 16 and 17 Clarified the language in the description.

Exhibit 5, Item 19b Clarified the language in the description.

Exhibit 5, Item 20b Clarified the language in the description.

Exhibit 5, Item 30 Updated the language in the description to match the CP.

Exhibit 5, Example PW Updated the example to show the proper calculations with the required 

rounding.
February 2024 FCIC-25760 TC 1

NURSERY VALUE SELECT PILOT LOSS ADJUSTMENT STANDARDS HANDBOOK

TABLE OF CONTENTS

PART 1: GENERAL INFORMATION AND RESPONSIBILITIES..............................................................................1

1 General Information......................................................................................................................1

2 Responsibilities..............................................................................................................................2

3-10 (Reserved) .....................................................................................................................................3

PART 2: POLICY INFORMATION......................................................................................................................4

11 Insurability ....................................................................................................................................4

12 Causes of Loss ...............................................................................................................................6

13 Provisions Not Applicable to CAT Level of Coverage .....................................................................8

14 Unit Division..................................................................................................................................8

15 Occurrence Loss Option ................................................................................................................9

16-20 (Reserved) ...................................................................................................................................10

PART 3: APPRAISALS ....................................................................................................................................11

21 General Information....................................................................................................................11

22 Crop Inspection Requirements....................................................................................................12

23 Dates...........................................................................................................................................13

24 Grouping Plants during Appraisals ..............................................................................................14

25 Determining Size Qualifications and Approved Sales Values.......................................................14

26 Basis for Indemnification.............................................................................................................16

27 Establishing Pre-Loss Actual Unit Value.......................................................................................17

28 Establishing Post-Loss Damage Value..........................................................................................18

29 Insect or Disease Claims..............................................................................................................21

30 Cold-Related Claims ....................................................................................................................21

31 Special Considerations/Case Procedure ......................................................................................22

32 Deviations and Modifications......................................................................................................24

33 General Information for Worksheet Entries and Completion Procedures...................................25

34-40 (Reserved) ...................................................................................................................................25

PART 4: INDEMNITY CALCULATIONS & PRODUCTION WORKSHEET..............................................................26

41 General Information....................................................................................................................26

42 Indemnity Calculation Examples .................................................................................................27

43 Completing the Production Worksheet.......................................................................................35

44-50 (Reserved) ...................................................................................................................................35
February 2024 FCIC-25760 TC 2

NURSERY VALUE SELECT PILOT LOSS ADJUSTMENT STANDARDS HANDBOOK

TABLE OF CONTENTS (Continued)

EXHIBITS .......................................................................................................................................................36

Exhibit 1 Acronyms and Abbreviations..............................................................................................36

Exhibit 2 Definitions..........................................................................................................................37

Exhibit 3 Form Standards – Preliminary Appraisal Worksheet for a Specific Plant............................39

Exhibit 4 Form Standards – Appraisal Worksheet .............................................................................44

Exhibit 5 Form Standards – Production Worksheet ..........................................................................48

Exhibit 6 Characteristic Nursery Plant Damage.................................................................................56

Exhibit 7 Nursery Plant Damage Assessment and Determination Factors ........................................58

Exhibit 8 Minimum Sample Sizes.......................................................................................................60

Exhibit 9 Cold Protection Assignments Based on Plant Category Within Hardiness Zones ...............61

Exhibit 10 Operational Cold Protection Requirements .......................................................................62

Exhibit 11 FCIC Container Sizes...........................................................................................................64
February 2024 FCIC-25760 1 

PART 1: GENERAL INFORMATION AND RESPONSIBILITIES 

1 General Information

A. Purpose and Objective

The loss adjustment standards for this crop are the official standard requirements for adjusting 

losses in a uniform and timely manner. These standards for this crop and crop year are in effect 

as of the signature date for this handbook located at: www.rma.usda.gov.

This handbook remains in effect until cancelled or superseded by reissuance of the entire 

handbook. A bulletin or FAD can supersede the relevant material in either the original 

handbook or subsequent amendments.

B. Source of Authority

The NVS pilot program was approved by the FCIC Board of Directors on November 15, 2019

under the authority of Section 523 of the Federal Crop Insurance Act.

C. Title VI of the Civil Rights Act of 1964

The USDA prohibits discrimination against its customers. Title VI of the Civil Rights Act of 1964 

provides that “No person in the United States shall, on the ground of race, color, or national 

origin, be excluded from participation in, be denied the benefits of, or be subjected to 

discrimination under any program or activity receiving Federal financial assistance.” Therefore, 

programs and activities that receive Federal financial assistance must operate in a nondiscriminatory manner. Also, a recipient of RMA funding may not retaliate against any person 

because they opposed an unlawful practice or policy, or made charges, testified or participated 

in a complaint under Title VI.

It is the AIPs’ responsibility to ensure that standards, procedures, methods and instructions, as 

authorized by FCIC in the sale and service of crop insurance contracts, are implemented in a 

manner compliant with Title VI. Information regarding Title VI of the Civil Rights Act of 1964 

and the program discrimination complaint process is available on the USDA public website at 

www.ascr.usda.gov. For more information on the Non-Discrimination Statement, see the DSSH.
February 2024 FCIC-25760 2 

1 General Information (Continued)

D. Related Handbooks

The following table provides handbooks related to this handbook.

Handbook Relation/Purpose

CIH This handbook provides the official FCIC-approved underwriting standards for 

policies administered by AIPs for the General Administrative Regulations, 

Common Crop Insurance Policy Basic Provisions, and Area Risk Protection 

Regulations.

DSSH This handbook provides the official FCIC-approved form standards for use in the 

sale and service of any eligible Federal crop insurance policy; required 

statements and disclosures; and the standards for submission and review of 

non-reinsured supplemental policies in accordance with the SRA.

GSH This handbook provides the official FCIC-approved standards for policies 

administered by AIPs under the General Administrative Regulations, Common 

Crop Insurance Policy Regulations Basic Provisions, including the Catastrophic 

Risk Protection Endorsement; the Area Risk Protection Insurance Regulations 

Basic Provisions; the Stacked Income Protection Plan of Insurance; the Rainfall 

Index Plan; and the Whole-Farm Revenue Protection Pilot Policy.

LAM This handbook provides the official FCIC-approved general loss adjustment 

standards for all levels of insurance provided under FCIC unless a publication 

specifies that none or only specified parts of this handbook apply.

(1) Terms, abbreviations, and definitions general (not crop specific) to loss adjustment are 

identified in the GSH and LAM.

(2) Terms, abbreviations, and definitions specific to nursery loss adjustment and this 

handbook are in Exhibits 1 and 2, herein.

2 Responsibilities

A. AIP Responsibilities

All AIPs shall utilize these standards for both loss adjustment and loss training for the applicable 

crop year. These standards, which include crop appraisal methods, claims completion 

instructions, and form standards, supplement the general (not crop-specific) loss adjustment 

standards identified in the LAM.

B. Form Distribution 

The following is the minimum distribution of forms completed by the adjuster and signed by 

the insured (or the insured’s authorized representative) for the loss adjustment inspection. 

(1) One legible copy to the insured; and

(2) The original and all remaining copies as instructed by the AIP.
February 2024 FCIC-25760 3 

2 Responsibilities (Continued)

C. Record Retention

It is the AIP’s responsibility to maintain records (documents) as stated in the SRA and described 

in the LAM.

D. Form Standards

(1) The entry items and completion instructions in Exhibits 3-5 are the minimum 

requirements for the Appraisal Worksheet and Production Worksheet. All entry items 

are “Substantive” (they are required).

(2) The Privacy Act and Non-Discrimination statements are required statements that must 

be printed on all forms or provided to the insured as a separate document. These 

statements are not shown on the example form(s) in Exhibits 3-5. See the DSSH for 

further information on these requirements. 

(3) The certification statement required by the current DSSH must be included on the PW

directly above the insured’s signature block immediately followed by the statement 

below:

(a) “I understand the certified information on this Production Worksheet will be 

used to determine my loss, if any, to the above unit. The insurance provider may 

audit and approve this information and supporting documentation. The Federal 

Crop Insurance Corporation, an agency of the United States, subsidizes and 

reinsures this crop insurance.”

(b) Refer to the DSSH for other crop insurance form requirements (such as point size 

of font, and so forth). The current DSSH can be found on the RMA website at: 

www.rma.usda.gov or successor website.

3-10 (Reserved) 
February 2024 FCIC-25760 4 

PART 2: POLICY INFORMATION

The AIP determines the insured has complied with all policy provisions of the insurance contract. The CP, 

which are to be considered in this determination, include (but are not limited to):

11 Insurability

A nursery grower may insure either the field grown practice or container grown practice or both. 

Container and field grown plants are insured as separate crops. At additional coverage levels, a 

nursery grower may choose to exclude plant categories from insurance under each practice insured. 

All plants in each insured plant category under a practice must be insured.

(1) If the insured selects the CAT level of coverage for a practice, all plant categories under the 

practice must be insured at the CAT level of coverage.

(2) If the insured selects an additional level of coverage for a practice and elects basic units by 

plant category, a different coverage level may be elected for each insured plant category.

(3) For the field grown practice only, if the insured selects an additional level of coverage, basic 

units by plant category or by non-contiguous land may be elected, but not both. If the insured 

elects basic units by non-contiguous land, the insured must select one coverage level for all the 

non-contiguous land units.

(4) The NVR may be revised no more than twice during the crop year. The increased insurance will 

not attach until the 31st day after the AIP receives an acceptable revised NVR. The revision can 

only increase SVs. NVR revisions are allowed for the following situations: 

(a) changes in the nursery (increased growing area, inventory volume, or inventory value, 

etc.);

(b) restocking after an insurable COL. The revised NVR in this case is not considered one of 

the two allowable revisions;

(c) clerical errors (The reason for the upward revision must be indicated in the Remarks 

section of the NVR form stating, “revised upward for clerical error correction.”);

(d) acquisition of another nursery in the same county that did not have any crop insurance 

coverage on its plants. Plants of the same insured plant categories can be included in a 

revised NVR; however, new plant categories may not be added; or

(e) acquisition of another nursery that had crop insurance in force. The existing policy can 

be transferred to the buyer in accordance with the BP. The revised NVR in these 

situations is not considered one of the two allowable revisions.

(5) For a new application, coverage will not attach until the later of the start date of the crop year 

or the 31st day after the AIP receives a signed application, NVR, and catalog, unless the AIP 

notifies the insured in writing that the nursery does not meet insurability requirements, or the 

submitted documentation is not acceptable. In that case, insurance will attach the 31st day 

after the AIP receives an acceptable NVR and catalog.
February 2024 FCIC-25760 5 

11 Insurability (Continued)

(6) For each subsequent crop year, coverage will begin at the same coverage level and SV on June 1 

or October 1, as applicable, provided the insured has provided the required certification that 

there are no material changes in the NVR previously submitted.

(7) If a carryover insured submits a new NVR by the applicable sales closing date, but the AIP 

notifies the insured the new NVR is unacceptable, the insured must provide an acceptable NVR 

within 30 days after the rejection of an unacceptable NVR has been sent. If the new NVR is still 

unacceptable, insurance will not attach for the crop year. If the new NVR is acceptable, 

insurance attaches on the 31st day after the AIP receives all documents required for an 

acceptable NVR.

(8) If the carryover insured fails to submit a new NVR or fails to submit a certification that the 

information for the prior crop year is appropriate, insurance will not attach for the crop year.

(9) Changes to coverage levels, SVs, insured practices, or plant categories must be requested by 

submitting a new NVR on or before the SCD.

(10) Insurable plants within the practice(s) insured will be all specific plants in the insured plant 

categories grown in the county for which a premium rate is provided by the actuarial 

documents and that:

(a) the insured has an insurable share;

(b) are determined by the AIP to be acceptable;

(c) are grown in a nursery inspected by the AIP and determined to be acceptable;

(d) are grown in an appropriate medium;

(e) are irrigated, unless otherwise provided by the SP;

(f) are grown in accordance with the production and good nursery practices for which 

premium rates have been established;

(g) are grown and sold with the root system attached; ***

(h) are not stock plants or plants being grown solely for harvest of buds, flowers, or 

greenery; ***

(i) may produce edible fruits or nuts, provided the plants are made available for sale 

(harvest of the edible fruit or nuts does not affect insurability);

(j) for field grown plants, must be adapted in the hardiness zone recognized by the USDA 

Plant Hardiness Zone Map in which they are grown; 
February 2024 FCIC-25760 6 

11 Insurability (Continued)

(k) were not damaged in a prior crop year unless such specific plants have been 

rehabilitated and are offered for sale at the approved sales value for the current crop 

year prior to insurance attaching, as accepted by the AIP; and

(l) for the container grown practice, are individual plants grown in standard nursery 

containers unless otherwise permitted by the SP. 

(11) Insurance ends at the earliest of:

(a) the date of final adjustment of a loss when the total indemnities due equal the amount 

of insurance;

(b) removal of bare root nursery plant material from the field;

(c) removal of all other insured plant material from the nursery;

(d) midnight local time on May 31 or September 30, as applicable;

(e) abandonment of the crop on the unit; or

(f) for specific plants, when meeting the definition of discarded damaged or dead/zero 

market value plant.

12 Causes of Loss

The insurance provided is only against unavoidable loss directly caused by specific causes of loss 

contained in the CP and SP. All specified causes of loss must be due to a naturally-occurring event.

A. Avoidable

All other causes of loss, including but not limited to the following, are not covered.

(1) Negligence, mismanagement, or wrongdoing by the insured, any member of the 

insured’s family or household, the insured’s tenants, or employees. 

(2) Failure to carry out good nursery practices, including, if applicable, irrigation for the 

insured plants and, for container grown plants, failure to provide cold protection when 

required by the SP.

B. Unavoidable

In accordance with Section 12 of the BP, insurance is provided for unavoidable damage caused 

only by the following causes of loss that occurs within the insurance period:

(1) adverse weather conditions, except as specified in Section 10(c) of the CP or the SP;

(2) fire, provided weeds and undergrowth near the plants or buildings on the insured’s site 

are controlled by chemical or mechanical means;
February 2024 FCIC-25760 7 

12 Causes of Loss (Continued)

B. Unavoidable (Continued)

(3) wildlife;

(4) earthquake; 

(5) volcanic eruption; or

(6) due to a COL listed in (1) through (6) that results in:

(i) a loss in plant value because such plants are dead/zero market value (e.g., 

poinsettias that cannot be sold during the usual and recognized marketing 

period of November 1 through December 25);

(ii) failure of the irrigation water supply; or

(iii) failure of, or a reduction in, the power supply.

C. Excluded

In addition to causes of loss excluded in Section 12(a) and 12(c)-(f) of the BP, insurance 

coverage is not provided against any damage to the insured specific plants caused by:

(1) disease or insect infestation, unless:

(a) a disease or insect infestation occurs for which no effective control measure 

exists; or

(b) coverage is specifically provided by the SP.

(2) inability to market the nursery plants as a result of:

(a) the refusal of a buyer to accept production;

(b) boycott; or

(c) an order from a public official prohibiting sales including, but not limited to, a 

stop sales order, quarantine, or phytosanitary restrictions on sales.

(3) cold temperatures, if cold protection methods are required for the specific plant, unless 

the insured has installed cold protection equipment or facilities, if required in the SP for 

the plant category, and:

(a) there is a failure or breakdown of the cold protection equipment or facilities 

resulting from an insurable COL specified in Section 10(a) of the CP provided the 

insured establishes that repair or replacement was not possible between the 

time of failure or breakdown and the time the damaging temperatures occurred; 

or
February 2024 FCIC-25760 8 

12 Causes of Loss (Continued)

C. Excluded (Continued)

(b) the lowest temperature or its duration exceeded the ability of the cold 

protection equipment or facilities to keep the nursery plants from sustaining 

cold damage.

(4) collapse or failure of buildings or structures, unless the damage to the building or 

structure results from an insurable COL specified in Section 10(a) of the CP or the SP;

(5) any COL including those specified in Section 10(a) of the CP or the SP, if the only damage 

is a failure of plants to grow to an expected size;

(6) failure to follow recognized good nursery practices; or

(7) if specified in the SP, if during any of the three most recent crop years the insured 

incurred a paid crop insurance indemnity due to excess moisture or flood that was not 

associated with a named storm (hurricane, typhoon, or tropical storm named and 

designated as such by the National Oceanic and Atmospheric Administration's National 

Hurricane Center, or its successor), we will not insure against any future losses due to 

excess moisture or flood not associated with a named storm unless the insured makes 

improvements to the nursery to mitigate future losses from these perils. At the 

insured’s request, the AIP will inspect the improvements and, if acceptable, approve the 

nursery for renewed coverage against these perils.

13 Provisions Not Applicable to CAT Level of Coverage

The following are not applicable if the CAT level of coverage is elected: 

(1) Basic Units by plant category.

(2) Basic Units by non-contiguous land.

(3) Hail and Fire Exclusion provisions.

(4) Occurrence Loss Option.

14 Unit Division

(1) Unit division on a geographic basis (i.e., different sections, FSNs, etc.) is not available except as 

provided in Paragraph 14(3)(b).

(2) Section 34 of the Basic Provisions is not applicable.

(3) If the insured elects additional coverage for a practice, a basic unit, as defined in Section 1 of 

the BP, may be divided into additional basic units using one of the following methods. The 

insured may choose only one method for all the basic units in the insured practice: 
February 2024 FCIC-25760 9 

14 Unit Division (Continued)

(a) each insurable plant category the insured chooses within a practice for which a 

premium rate is provided by the actuarial documents; or

(b) for the field grown practice only, the insured may elect basic units by non-contiguous 

land. Basic units by non-contiguous land for the container grown practice may be 

allowed only if specified in the SP.

(4) The unit number assigned for a unit must be specific for that particular unit. If a basic unit is 

established by non-contiguous land, all insured plant categories in the unit must have the same 

unit number. If a loss is reported for part of a unit, the entire unit must be appraised (all plant 

categories within that unit must be appraised separately, even if only one plant category has 

been damaged).

(5) Only the plant categories listed in the SP are insurable.

(6) For additional level of coverage, the plant categories the insured has elected to exclude from 

insurance are uninsurable and not subject to adjustment in the event of a loss.

15 Occurrence Loss Option

An insured with an NVS Pilot policy with additional coverage in effect may elect to obtain additional 

coverage through the OLO when premium rates for the option are provided in the actuarial 

documents. The OLO, when elected, will attach to all insured plant categories in each insured practice. 

The option must be elected at the time of application for new insureds or, for carryover insureds, on or 

before the sales closing date preceding the crop year the option is to attach. Once elected, the option 

is continuous. The insured or AIP may cancel the option according to the cancellation provisions of the 

CP.

(1) The insured may not elect the OLO if they have elected the CAT level of coverage.

(2) An indemnity will be due under the OLO only if the post-loss damage value is at least ten 

percent (10%) of the pre-loss actual unit value, unless otherwise specified in the SP.

(3) The amount of the indemnity will be determined as follows:

(a) calculate the pre-loss actual unit value;

(b) calculate the post-loss damage value;

(c) calculate the percent of loss;

(d) if the percent of loss is:

(i) greater than or equal to ten percent (10%) of the pre-loss actual unit value 

(unless otherwise provided in the SP) an indemnity is payable on the unit; and

(ii) less than ten percent (10%) of the pre-loss actual unit value (unless otherwise 

specified in the SP) no indemnity will be due;
February 2024 FCIC-25760 10

15 Occurrence Loss Option (Continued)

(e) if an indemnity is determined to be payable on the unit, multiply the result of (c) by the 

coverage level and by the lesser of the:

(i) the pre-loss actual unit value; or

(ii) the SV minus any previous loss for the basic unit; and

(f) multiply the result of (e) by the insured’s share. 

(4) Total indemnities for the crop year cannot exceed the amount of insurance.

16-20 (Reserved)
February 2024 FCIC-25760 11

PART 3: APPRAISALS

21 General Information

Potential production will be appraised in accordance with the BP, CP, the SP, and with the procedures 

specified in this handbook and in the LAM.

In addition to insured’s duties in Section 14 of the BP, in case of damage to the insured plants (see 

Exhibit 6 for list of possible damages), the insured must:

(1) protect the plants from further damage by providing sufficient care;

(2) give the AIP notice within 72 hours of the insured’s initial discovery of damage (but not later 

than 15 days after the end of the insurance period); and

(3) cooperate with the AIP in the investigation or settlement of claim.

The insured must obtain written consent prior to destroying, selling, or otherwise disposing of any 

damaged or dead/zero market value plants. The insured must obtain written consent prior to changing 

or discontinuing normal growing practices with respect to care and maintenance of the insured plants. 

Failure to obtain the AIP’s written consent will result in denial of the claim on the unit for which 

written consent was not obtained.

If the insured intends to claim an indemnity on any unit, the claim for indemnity must be submitted 

not later than 60 days after the date of the loss, but in no event later than 60 days after the end of the 

insurance period. This requirement will be waived by the AIP if the final adjustment of the insured 

claim is totally or partially deferred because the AIP is unable to make an accurate determination of 

the amount of damage to the insured plants: 

(1) for those damaged or dead/zero market value plants on which the loss adjustment and claim 

have not been deferred, the insured must submit a partial claim within the time frame specified 

and the AIP will settle the insured’s claim on such plants; 

(2) for those damaged or dead/zero market value plants on which the loss adjustment and claim 

have been deferred, the AIP will determine the amount of damage at the earliest possible date, 

but no later than one year after the end of the insurance period for the crop year in which the 

damage occurred; and

(3) the insured must maintain the identity of the plants on which loss adjustment is deferred 

throughout the deferral period.

If the insured fails to meet the above requirements and such failure results in the AIP’s inability to 

inspect the damaged or dead/zero market value production, all such damage will be considered 

uninsurable, and the claim will be denied. Plants suffering uninsurable damage will not be considered 

insurable or indemnifiable if a subsequent loss occurs. Refer to the LAM for further instructions.
February 2024 FCIC-25760 12

21 General Information (Continued)

The insured must maintain the identity of plants that: 

(1) were damaged prior to insurance attachment; and

(2) are damaged during the crop year due to a loss event, whether it is an insurable COL or not.

The insured must maintain an inventory including the number of all specific plants damaged and their 

location in the nursery and this inventory should be updated as changes in the status (e.g., death, 

rehabilitation, discounted sales, etc.) of individual plants occur. If requested, the insured must 

provide: 

(1) the most recent inventory; and

(2) purchase and verifiable sales records from the date of the most recent inventory to the date of 

loss occurrence.

For container grown plants, the damaged plants may be moved to a well-defined location separate 

from undamaged plants. For field and container grown plants, the insured could attach uniquely 

numbered weather-proof, indelible labels to each damaged plant. For very high value plants, Radio 

Frequency Identification tags may be used for this purpose. The AIP must evaluate the proposed 

method of preserving identity to determine if it is acceptable.

22 Crop Inspection Requirements

In addition to any pre-acceptance nursery inspection, any growing season and loss claim inspections 

are to be performed by loss adjusters adequately knowledgeable and trained in nursery plants and 

nursery operations.

The use of a nursery crop consultant in collaboration with the loss adjuster may be needed to complete 

the inspection. The AIP is responsible for arranging for the crop consultant to assist the loss adjuster. 

The opinion of the consultant must meet or exceed the following minimum requirements:

(1) the opinion must be in writing, signed, and dated.

(2) the opinion must include:

(a) a statement of the nursery crop consultant’s education and experience that qualifies the 

individual as a nursery crop consultant;

(b) a statement disclosing any familial or business relationship with the insured nursery, 

AIP, loss adjuster, or agent other than a fee for providing a written opinion;

(c) the name of who requested the opinion;

(d) the name of the nursery;

(e) the mailing and physical address of the nursery, including the county where the nursery 

is located;

(f) the date of inspection; 
February 2024 FCIC-25760 13

22 Crop Inspection Requirements (Continued)

(g) the plant category(ies) inspected;

(h) the specific plants inspected;

(i) the total number of each of the specific plants in the unit inspected;

(j) the sample size for each of the specific plants inspected;

(k) the primary cause of damage claimed and the determined cause;

(l) the secondary cause of damage, if any;

(m) for damaged plants, by specific plant state:

(i) the type of damage sustained by the plants (Exhibit 6);

(ii) the percent of the damage;

(iii) the number of damaged plants in the sample;

(iv) the number of damaged plants in the sample the insured intends to retain; and

(v) the number of damaged plants the insured intends to discard;

(n) for dead/zero market value plants, by specific plant state:

(i) the type of damage sustained by the plants that results in considering the plant 

to have zero market value (Exhibit 7), and/or the basis for identifying plants that 

were lost, blown, or swept away by water or windstorm; and

(ii) the number of dead/zero market value plants in the sample; and 

(o) provide the basis for the opinion (industry guidelines, state regulations, etc.), and 

provide all photographs of the damage, as appropriate, and documentation supporting 

the COL.

(3) The AIP shall not accept written opinions that do not meet these minimum standards.

23 Dates

(1) AIP representatives will confer with the insured(s) to set appraisal dates.

(2) Appraise the unit as soon as possible after the date of damage.
February 2024 FCIC-25760 14

24 Grouping Plants during Appraisals

(1) While performing the appraisal, an inventory must be created to establish the total number of 

each specific plant in the unit. A sample of each specific plant in the unit is evaluated to 

determine the insurable amount of undamaged, damaged and dead/zero market value plants. 

The damaged plants in the sample must be further divided by the insured or the loss adjuster in 

accordance with Paragraph 28(1) into retained damaged and discarded damaged plants. All 

plants in the unit must be accounted for.

(2) Establish the number of undamaged, retained damaged, discarded damaged, and dead/zero 

market value plants of each specific plant in the unit by multiplying the percentage of plants in 

each of these groups in the sample of the specific plant by the total number of that specific 

plant in the unit.

(3) Nursery records may be used to document the nursery’s inventory of undamaged plants prior 

to a loss after these records have been verified to be acceptable. Acceptable nursery records 

include purchase, planting, sale, and inventory records. Purchase and sale records must be 

verifiable. Verifiable purchase and sale records must show the purchase or sale of specific 

plants containing:

(a) the name and address of the purchaser;

(b) the date of sale; and

(c) the complete botanical or common name of the specific plant(s) sold, number of each of 

these specific plants sold, and the actual wholesale price received for each specific 

plant. Exclude all discounts, shipping charges, or any amounts that do not directly relate 

to the wholesale value of the specific plants.

(4) A purchaser must be a disinterested third party; otherwise, the records are not acceptable. 

Records created by the insured after a loss are not acceptable records.

(5) The NVS Pilot Appraisal Worksheet (Exhibit 3) is used to determine pre-loss actual unit value 

and post-loss damage value.

A greater than ten percent size variation within a specific plant grouping can be an indication of other 

problems. The adjuster will need to look for such things as differing species, poor soils, disease, 

insects, chemical damage, irrigation problems, etc., which may be indicative of uninsured causes of 

loss.

25 Determining Size Qualifications and Approved Sales Values

A. Size Qualifications

(1) Specific plants may be measured by container size (Exhibit 11), caliper, height, or width, 

as per the insured’s catalog.

(2) Plants and containers that are not of a size listed in the insured’s catalog will be 

insurable at an approved sales value prorated based on the nearest sizes listed in the 

catalog and their approved sales value.
February 2024 FCIC-25760 15

25 Determining Size Qualifications and Approved Sales Values (Continued)

A. Size Qualifications (Continued)

(3) Plant height does not include the height of the root ball for balled-and-burlapped plants. 

Plant width measurements use the width of the crown (branches and foliage).

B. Approved Sales Value

(1) The approved sales value for each specific plant will be used when determining the preloss actual unit value and post-loss damage value.

(2) The approved sales value for each specific plant is, in order of precedence:

(a) the insured’s average weighted wholesale price (net of all discounts) for each 

specific plant within each plant category determined for, not to exceed 1.5 times 

the catalog price, unless otherwise specified in the SP: 

(i) the 60-day period immediately preceding the date of the insured COL; or

(ii) if no sales occurred in the 60-day period immediately preceding the date 

of the insured COL, the 12 calendar months immediately preceding the 

date of the insured COL; or

(b) if no wholesale sales occurred for the specific plant during the 12 calendar 

months immediately preceding the date of the insured COL, average contract 

price (net of all discounts), not to exceed 1.5 times the wholesale catalog price, 

unless otherwise specified in the SP, for all future wholesale deliveries of the 

specific plant insured during the insurance period; or

(c) if no wholesale sales occurred for the specific plant during the 12 calendar 

months immediately preceding the date of the insured cause of loss or there is 

no contract price for future wholesale deliveries of the specific plant, then the 

insured’s wholesale catalog price for that specific plant multiplied by the 

difference between 1.00 and the largest percentage discount (calculated as a 

percentage if the discount is recorded as a dollar amount) that the insured 

provides to any buyer for any quantity of any specific plant.

(i) If the insured’s catalog does not contain all applicable discounts, the 

wholesale catalog price for the specific plant will be decreased by 10 

percent; and

(ii) Notwithstanding (c), discounts will not be applied to prices for plants 

grown under license from the holder of a patent issued by the US Patent 

and Trademark Office provided the license specifically establishes the 

required sales price.

(iii) A discount stated as a dollar value relative to a specific dollar amount or a 

range of dollar amounts for a purchase will be converted to a percentage 

rate by dividing the dollar amount of such discount by the dollar amount 

to which such discount applies.
February 2024 FCIC-25760 16

25 Determining Size Qualifications and Plant Prices (Continued)

B. Approved Sales Value (Continued)

(3) If no records for a specific plant exist as outlined in 2(a) or 2(b) above, the approved 

sales value for that specific plant will be determined by prorating the approved sales 

values of the nearest size of that specific plant using first 2(a) then 2(b) above.

Step Action

1 Identify the nearest sizes listed in the insured’s catalog for the plant identified 

by its complete botanical or common name. These are the reference plants.

2 Determine the approved sales value for the plants identified in 1.

3 Determine the difference in size between the larger and smaller sizes in 1 by 

subtracting the smaller size from the larger.

4 Determine the difference in the approved sales values determined in 2 by 

subtracting the smaller value from the larger.

5 Divide 4 by 3, retaining the units. This represents the approved sales value 

difference per size unit.

6 Determine the size difference between the specific plant and the next nearest 

plant from 1 by subtracting the smaller size from the larger.

7 Multiply the result of 6 by the result of 5. This is the value difference 

between the next nearest size plant and the specific plant.

8a If the next nearest size plant is smaller than the specific plant, add the result 

of 7 to the approved sales value for the next nearest size plant.

8b If the next nearest size plant is larger than the specific plant, subtract the 

result of 7 from the approved sales value for the next nearest size plant.

(4) Plants and containers that are:

(a) larger than the largest size listed in the insured’s catalog will be insurable at the 

approved sales value for the largest size listed in the catalog.

(b) smaller than the smallest size listed in the insured’s catalog will be insurable at 

an approved sales value prorated based on actual size and the approved sales 

value for the smallest size listed in the catalog for that specific plant.

26 Basis for Indemnification

Claims must be submitted as “final claims,” each of which will build upon the information obtained 

from any previous “final claims” for the unit for the crop year. Each claim reduces the amount of 

insurance. A claim is payable whenever the difference between the amount of loss and the occurrence 

deductible is greater than zero unless the OLO is in effect. When an OLO is in effect, an occurrence 

deductible is not applicable. When an OLO is not in effect, an occurrence deductible is applied to each 

instance a claim is prepared. It equals the deductible percentage multiplied by the lesser of the SV or 

the pre-loss actual unit value.
February 2024 FCIC-25760 17

27 Establishing Pre-Loss Actual Unit Value

Market value establishment of nursery plants differs from other crops because market reports that are 

available for most other insured crops are not available for nursery. The CP requires that the insured 

submit an NVR for each basic unit, for all growing locations within the county, which includes the 

insured plant category, SV, coverage level, and the insured’s share.

Prior to determining the amount of any loss, AIPs must request and verify documentation to support 

pre-loss inventories of specific plants and approved sales value used to determine the pre-loss actual 

unit value. No indemnity will be paid for specified plants for which the documentation is inadequate, 

including tracking of plants for subsequent loss events.

For standardization purposes, the American Standard for Nursery Stock (ANSI Z60.1), published by the 

AmericanHort, will be used as the plant size measurement standard for insurance purposes (Exhibit 

11). When standards issued by a state or the insured’s catalog are in conflict with ANSI Z60.1 

standards, the ANSI Z60.1 standards will prevail for insurance purposes.

(1) Pre-loss actual unit value of plants grown in containers that are oversized relative to the current 

physical size of the plant will be adjusted for the container size listed in the insured’s catalog 

appropriate for the actual plant size.

(2) Field grown and dug plants will be size-evaluated by plant height, width, and/or caliper size 

depending on the specific plant in the insured’s catalog using the procedures specified in ANSI 

Z60.1. For insurance to remain in effect for dug plants, the root ball must be roughly the 

dimension or larger than that specified in the standard. The policy states that insurance 

coverage ceases for bare-root plants when the plants are removed from the growth medium, 

including removal from the soil or aquatic medium for field grown plants.

Copies of the ANSI Z60.1 are available online at no cost at www.americanhort.org or its 

successor.

(3) Pre-loss actual unit value is established using the following, as applicable:

(a) The approved sales value for each specific plant is calculated as described in Paragraph 

25. 

(b) The number of each specific plant in the unit prior to the loss.

(i) If possible, this number is to be obtained by taking an inventory (count) of the 

specific plants in the unit that existed before the loss event occurred.

(ii) Alternatively, this number may be established by subtracting appropriate sales 

and adding appropriate purchases from the number of that specific plant as 

documented by the insured’s records from the most recent inventory record

granted that: 

(A) the purchase records are verifiable; and

(B) the inventory records must have been produced prior to the loss, be 

dated, be the most recent available, and be certified by the insured as 

such. 
February 2024 FCIC-25760 18

27 Establishing Pre-Loss Actual Unit Value (Continued)

(4) If plants have disappeared due to an insurable COL (hurricane, tornado, flood, etc.), obtain 

records from the insured to establish the number of such plants and include that number in the 

totals for each specific plant.

Step Action

1 Determine the number of each specific plant that was in the unit immediately prior 

to the occurrence of the COL. Include plants that have disappeared.

2 Multiply the approved sales value for each insured specific plant by the number of 

that specific plant in the unit.

3 Sum all the values obtained in step 2.

28 Establishing Post-Loss Damage Value

Refer to the CP for definitions of damaged plant, discarded damaged plant, retained damaged plant, 

and dead/zero market value plant. Additional guidance is found in Exhibits 6 and 7. In determining the 

post-loss damage value, AIPs must use the same approved sales value for specific plants that was used 

to determine pre-loss actual unit value (Paragraph 27).

Damage factors for establishing the post-loss damage value are in the SP and Exhibit 7. Refer to 

Exhibits 6 and 7 for more information on post-loss damage value determinations. 

The loss adjuster performs all the actions in the table below for each specific plant, except for the 

following decisions:

(1) the insured determines the number of damaged plants (if applicable) within each sample 

population that are to be retained or are to be discarded in all plant categories except Liners 

and Annual Plants. However, the insured may assign this responsibility to the loss adjuster to 

make these determinations; and 

(2) the insured may decide to consider plants undamaged that were determined by the loss 

adjuster to be dead/zero market value in Liners and Annual Plants Plant Categories.
February 2024 FCIC-25760 19

28 Establishing Post-Loss Damage Value (Continued)

Step Action

1 Use the number of each specific plant that was used to determine pre-loss actual unit value.

2 For each specific plant the adjuster uses the value from step 1 above and the table in Exhibit 8 to 

determine the appropriate minimum representative sample size.

3 The adjuster selects representative samples for each specific plant. See the pre-established 

modification (Paragraph 32) for dealing with plants whose damage is markedly different to address 

populations or sub-populations that are lost, blown away or swept away by flood.

4 For each sample, the adjuster then sorts sampled plants from step 3 into one of three groups:

(a) undamaged plants;

(b) damaged plants; and 

(c) dead/zero market value plants.

5 For each sample, the insured determines which, if any, of the plants identified by the adjuster as 

dead/zero market value plants will be moved to the retained damaged plants category.

For each sample, the insured determines which, if any, of the plants identified by the adjuster as 

damaged plants will be retained damaged plants and which will be discarded damaged plants.

6 For each sample, the adjuster multiplies the appropriate damage factor from the SP by the 

approved sales value and by the number of plants in the sample that are:

(a) undamaged plants;

(b) retained damaged plants; 

(c) discarded damaged plants; and 

(d) dead/zero market value plants.

7 For each sample, the adjuster sums the results from step 6.

8 For each sample, the adjuster divides the product of the approved sales value and the number of 

sampled plants by the result of step 7 to obtain an average value per plant in the sample.

9 For each sample, the adjuster multiplies the result from step 8 by the number of that specific plant 

(including missing plants) in the unit. ***

10 The adjuster sums the results of step 9 for all specific plants in the unit to establish the post-loss 

damage value for the unit.
February 2024 FCIC-25760 20

28 Establishing Post-Loss Damage Value (Continued)

Use the following to address issues with plants that require special attention during the loss 

adjustment procedures.

Group Information

Plants damaged in 

an earlier 

occurrence by an 

insured COL during 

the crop year that 

were retained.

Plants with previous damage that occurred during the crop year are insurable 

in the event of a subsequent loss within the same crop year. Insureds must 

maintain the identity of such plants. Insureds are limited to receiving the 

remaining value (50% damage factor) from the previously-damaged plant.

Omitted plant: 

Specific plants in an 

insured plant 

category not listed 

in the catalog.

If the complete botanical or common name is missing, but the genus, species 

or a common name (ignoring the variety, cultivar, or color) is listed in the 

catalog, use the lowest approved sales values for plants in that broader 

grouping. 

If the complete botanical or common name is missing and the genus, species 

or a common name (ignoring the variety, cultivar, or color) is not listed in the 

catalog, the plant is uninsurable and not included in either the pre-loss actual 

unit value or the post-loss damage value. 

If the plant size is missing, use the pro-rata procedures in Subparagraph 25B(3)

to establish an approved sales value.

Plants in uninsured 

plant categories.

All specific plants in plant categories the insured has elected not to insure are 

uninsurable. Neither pre-loss unit value nor post-loss damage value is 

calculated for these plant categories. If there is any doubt about a plant 

belonging to a plant category, consult an expert. Refer to the SP and USDA 

Plants website for guidance.

Prohibited plants. A prohibited plant is any plant classified by any government entity as illegal to 

grow or sell in the county in which the nursery is located and is uninsurable, 

even if otherwise qualifying as insurable, and will not receive an indemnity.

Insurance shall not attach to or be provided for any plant considered a 

controlled substance under the provisions of the Food Security Act of 1985 

(Pub. L. 99-198) and the regulations promulgated under the Act by USDA.

If during any inspection or settlement of a claim, it is determined that 

prohibited plants are being grown, reduce the pre-loss unit value and post-loss 

damage value of any affected unit by the value of the prohibited plant(s).

(1) The inability to market plants in the primary market and at the time the plants would normally 

be marketed is not a separate and distinct COL.
February 2024 FCIC-25760 21

28 Establishing Post-Loss Damage Value (Continued)

(2) The customers’ failure to purchase nursery stock is not an insured COL. The policy only covers 

damage to the plant due to an insured COL that occurs within the insurance period.

(3) If the plants are not damaged, there is no indemnifiable loss even if no one is willing to 

purchase the plants.

(4) Any plant grown for a niche market (such as poinsettia for Christmas) that is damaged by an 

insured COL and due to such damage will not be a marketable plant within that niche marketing 

period may be considered to have zero market value. A niche market applies only to a very 

narrow selection of plants (e.g., poinsettias, Easter lilies, poppies, etc.) that generally cannot be 

sold after a specific time during the year. Plants grown under contract for delivery are not, by 

themselves, considered plants grown for a niche market.

(5) Propagation plants (such as “stock” plants grown solely for cuttings, budding or grafting, airlayering, seed production, etc.) that are not offered for wholesale by the nursery are not 

insurable. “Stock” plants grown for sale are insurable at their appropriate approved sales 

value. For operations producing stock plants for propagation and sale, all such plants must be 

insured as plants for sale. 

(6) The inability to market plants solely due to marketing conditions (such as an over-supply, lack 

of demand, quarantine, etc.) is not an insurable COL.

29 Insect or Disease Claims

The CP specify that insurance is not provided against any loss caused by insect or disease infestation 

unless no effective control measure exists or coverage is specifically provided by the SP.

Claims reporting insects or disease as a COL must be thoroughly documented, indicating what 

insect/disease control practices were utilized, and experts’ opinions that the insect and/or disease 

could not be controlled.

Plants with a disease for which there is no effective control measure must be destroyed and that 

destruction verified before a claim for indemnity can be finalized. Such plants are considered to have 

zero market value.

Plants that do not incur insurable physical damage are not covered for loss caused by the imposition of 

a boycott, a stop sales order, quarantine, or phytosanitary restriction.

30 Cold-Related Claims

The CP specify that insurance is not provided against any loss caused by cold temperatures if cold 

protection methods are required for the specific plants, unless the insured has installed appropriate 

cold protection equipment or facilities.
February 2024 FCIC-25760 22

30 Cold-Related Claims (Continued)

An indemnifiable claim for cold damage must be documented by:

(1) recording the cold event that caused the loss.

(2) recording how the appropriate cold protection method was verified, either by:

(a) protection of specific plants in a plant category by means equal to or greater than those 

specified in the SP (protection methods can be found in Exhibits 9 and 10); or

(b) testimony from a CSREES officer or other appropriate expert.

(3) recording the nature of the cold damage observed, including:

(a) dead foliage;

(b) split branches;

(c) split bark on the truck or scaffold branches;

(d) damaged apical meristems; or

(e) other appropriate damage verified by testimony from an CSREES officer or other 

appropriate expert.

When required appropriate cold protection has been used for only part of an otherwise specific plant 

inventory requiring cold protection, only those plants having the proper cold protection are considered 

insurable against cold damage. Only the value (with appropriate damage factor applied) of those 

plants for which proper cold protection was applied are included in the post-loss damage value. The 

value of all the plants with and without proper cold protection are included in the pre-loss actual unit 

value.

Failure or breakdown of the cold protection equipment or facilities resulting from an insurable COL is 

an insurable cause of loss provided the insured can establish that repair or replacement was not 

possible between the time of failure or breakdown and the time the damage occurred.

The COL reported for plants damaged by cold at temperatures above 32oF may be reported as “freeze” 

per the LAM.

31 Special Considerations/Case Procedure

(1) Liners and containers containing multiple species are NOT insurable.

(2) Nursery plants are not considered insurable until they become established, even if they are 

otherwise insurable. A plant will be determined to be established when it has a viable root and 

foliage system capable of supporting its growth without any input from the food reserves of 

seeds, mother plants (source clone), cuttings, etc. In addition to this requirement, plants that 

are propagated from a mother plant (or source clone) will be considered established only after 

they have been detached from the mother plant (or source clone).
February 2024 FCIC-25760 23

31 Special Considerations/Case Procedure (Continued)

(3) Grafted or budded plants are considered to be viable once the graft or bud union has formed. 

The approved sales value for grafted or budded plants will need to be prorated (Paragraphs 

25B(3) and 25B(4)) if damage occurs prior to reaching a marketable size.

(4) Ongoing, detectable damage that occurs at the end of the insurance period is to be covered by 

the AIP of record at the time damage occurred, provided timely NOL is given. If a different AIP 

is to assume liability for the subsequent crop year, insurance coverage is provided against 

insurable damage occurring within the new crop year as of the date liability is assumed. 

Specific plants that were damaged in a prior crop year are not insurable unless rehabilitated 

and offered for sale at the approved sales value prior to insurance attachment for the 

subsequent crop year.

(5) Once liability is accepted by the assuming company, the assuming company is liable for 

coverage from that date. The inspection affirms the nursery’s potential to produce a 

marketable product without undue probability of loss.

(6) If the AIP receives timely NOL on a unit, and during the loss inspection, the adjuster finds 

damaged plants for which the amount of damage can be determined and other plants where 

the amount of damage cannot be accurately determined until a later date, then: 

(a) as provided in Section 11 of the CP and Section 14 of the BP, the AIP may defer final 

adjustment of such plants until the amount of damage can be accurately determined. 

Only the appraisal of plants with indeterminable damage will be deferred. The AIP is to 

advise the insured that:

(i) the claim for those plants with indeterminable damage will be deferred until 

such time as the damage can be determined, but no later than one year after the 

end of the insurance period for the crop year in which the damage occurred.

(ii) the insured is to maintain identity of the plants with indeterminable damage and 

continue to care for them until such time an accurate determination of the 

damage can be made. If the above is not done, then the amount of damage to 

plants with indeterminable damage cannot be determined, and the plants for 

which deferral was made will be considered undamaged.

(b) the adjuster will enter on a special report the following information for appraisaldeferred plants: 

(i) specific plant and quantity;

(ii) date and COL, the type of indeterminable damage; and

(iii) length of time for which appraisal of the plants is deferred.

(c) the adjuster will complete a final claim for plants with determinable damage at the time 

of initial inspection for the loss occurrence: 

(i) complete pre-loss actual unit value as would be done for any normal inspection.
February 2024 FCIC-25760 24

31 Special Considerations/Case Procedure (Continued)

(ii) complete post-loss damage value as would be done for any normal inspection, 

treating the appraisal-deferred plants as undamaged plants. 

(d) after damage to the appraisal-deferred plants can be accurately determined, complete a 

corrected claim with actual damage amounts. On the corrected claim, the only changes 

will be the undamaged status of the deferred plants and increasing the post-loss 

damage value to reflect the actual damage amount for the loss occurrence. Pre-loss 

actual unit value will remain unchanged.

A corrected claim must be completed prior to completing a claim for a subsequent loss 

if the: 

(i) appraisal-deferment crosses from one crop year into the next and the plants are 

subsequently determined to have been undamaged, the insured must report the 

appraisal-deferred plants on the NVR at full value prior to the damage in order 

for the insured to have full coverage. 

(ii) plants are found to be damaged plants at the time of the corrected claim, the 

AIP will reduce the NVR by the sum of the appropriate approved sales value of 

each specific plant by the appropriate number of the damaged specific plant.

(7) A revised NVR must be made no later than 30 days before the end of the crop year. A timelyfiled revised NVR will be in effect 30 days after the written request to change coverage unless, 

within the 30-day waiting period:

(a) the proposed increase was not accepted in writing by the AIP; or

(b) a loss occurred on the unit for which the revised report was prepared.

Downward revisions and premium reductions are only allowed when appropriate to correct AIP 

clerical errors, to reduce reported values for previously-damaged plants found during the 

inspection, and to remove values for uninsurable plants. Complete any revisions to the NVR 

according to instructions provided by the AIP.

32 Deviations and Modifications

(1) Deviations in appraisal methods require FCIC written authorization (as described in the LAM) 

prior to implementation.

(2) A pre-established modification to this handbook allows AIPs to change the sampling protocol if 

the damage within the population of a specific plant is markedly different. Under this 

modification, the adjuster may first divide the population of the specific plant into subpopulations that are uniformly affected. Each sub-population is sampled according to the 

prescribed sampling protocol from Paragraph 28. The procedures set forth in Paragraph 28 

must be followed for each of the sub-populations. 

Example: 1,000 specific plants are divided into two sub-populations of 200 and 800 plants 

because of markedly different damage.
February 2024 FCIC-25760 25

32 Deviations and Modifications (Continued)

25 plants are sampled in the population of 200: 24 plants are undamaged and 1 plant is 

determined to be retained damaged.

40 plants are sampled in the population of 800: 1 plant is determined to be undamaged, 4 

plants are determined to be retained damaged, 5 plants are determined to be discarded 

damaged and 30 plants are determined to be dead/zero market value.

The respective number of plants in each of these four groups in the entire specific plant 

population are:

Undamaged (24/25) × 200 + (1/40) × 800 = 192 + 20 = 212

Retained Damaged (1/25) × 200 + (4/40) × 800 = 8 + 80 = 88

Discarded damaged (0/25) × 200 + (5/40) × 800 = 0 + 100 = 100

Dead/Zero Market Value (0/25) × 200 + (30/40) × 800 = 0 + 600 = 600

Refer to the LAM for more information about modifications.

33 General Information for Worksheet Entries and Completion Procedures

(1) The completion instructions for the required entry items on the Appraisal Worksheets in 

Exhibits 3 and 4 are “Substantive” (i.e., they are required).

(2) Include the AIP’s name in the Appraisal Worksheet title if not preprinted on the Appraisal 

Worksheet or when a worksheet entry is not provided.

(3) Include the claim number on the Appraisal Worksheet (when required by the AIP), when a 

worksheet entry is not provided.

(4) Nursery appraisals are to be made when directed by the AIP or when a notice of damage has 

been received. Refer to the LAM for additional reasons for appraisals.

(5) Make separate appraisals for each insured specific plant in each insured plant category within a 

basic unit.

(6) Document all uninsured COLs in the Remarks section.

(7) Verification for all cold-related claims is required. Include in the Remarks section or on a 

separate sheet, if necessary.

(8) Document different specific plants in the plant category on the Appraisal Worksheets.

(9) A separate Appraisal Worksheet is required for each insured plant category in each basic unit 

inspected. 

34-40 (Reserved)
February 2024 FCIC-25760 26

PART 4: INDEMNITY CALCULATIONS & PRODUCTION WORKSHEET

41 General Information

Successive indemnities may be paid on the same basic unit subject to a new occurrence deductible 

each time. Each indemnity paid reduces the amount of insurance remaining on the basic unit.

The maximum indemnity is limited to the amount of insurance for the basic unit. When the amount of 

indemnity paid equals the amount of insurance, no additional coverage is available for the remainder 

of the crop year. However, coverage can be increased or re-established if the nursery is restocked and 

a revised NVR is completed and approved by the AIP.
February 2024 FCIC-25760 27

42 Indemnity Calculation Examples

Example 1 First Claim CAT Coverage

Pre-loss Actual Unit Value Less than SV

Step Action Result

Established with the Application

A Enter share as a decimal percentage 1.0000

B Coverage Level =

for CAT coverage, enter 0.50 

OR

for additional coverage, enter the elected coverage level 

0.50

C Deductible percentage = 1.00 - B 0.50

D Price = 

for CAT coverage, enter 0.55 

OR

for additional coverage, enter 1.00

0.55

E Enter SV $100,000 

F Initial amount of insurance = A × B × D × E $27,500 

G CYD = C × E $50,000 

H If the OLO is not elected, leave blank 

OR

If the OLO is elected, enter 0.10 or

the appropriate decimal OLO trigger value from the SP

Values at the Time of Loss

I Enter Pre-loss Actual Unit Value $80,000

J Enter Post-loss Damage Value $60,000

K Percent of Loss = (J ÷ I) 0.7500

L Total amount from previous loss occurrences*

*excluding price and share

M Total amount of any previous indemnity payments

N Total amount of any previous occurrence deductibles

O Occurrence Deductible =

The lesser of (G - N) or (C × I) 

$40,000

P CAT

Indemnity = lesser of (F-M) or (((lesser of I or (E - L)) × K) - O) × A × D 

$11,000 

Q Additional Coverage without OLO

Indemnity = lesser of (F - M) or (((lesser of I or (E - L)) × K) - O) × A × D 

R Additional Coverage with OLO

Indemnity = lesser of (F - M) or (A × K × B × (lesser of I or (E - L)))

S Remaining amount of insurance (F - M - P) $16,500 
February 2024 FCIC-25760 28

42 Indemnity Calculation Examples (Continued)

Example 2 First Claim Additional Coverage without OLO

Pre-loss Actual Unit Value Less than SV 

Step Action Result

Established with the Application

A Enter share as a decimal percentage 1.0000

B Coverage Level =

for CAT coverage, enter 0.50 

OR

for additional coverage, enter the elected coverage level 

0.75

C Deductible percentage = 1.00 - B 0.25

D Price = 

for CAT policies 0.55 

OR

for additional coverage enter 1.00

1.00

E Enter SV $100,000 

F Initial amount of insurance = A × B × D × E $75,000 

G CYD = C × E $25,000 

H If the OLO is not elected, leave blank 

OR

If the OLO is elected, enter 0.10 or

the appropriate decimal OLO trigger value from the SP

Values at the Time of Loss

I Enter Pre-loss Actual Unit Value $80,000 

J Enter Post-loss Damage Value $60,000 

K Percent of Loss = (J ÷ I) 0.7500

L Total amount from previous loss occurrences*

*excluding price and share

M Total amount of any previous indemnity payments

N Total amount of any previous occurrence deductibles

O Occurrence Deductible =

The lesser of (G - N) or (C × I) 

$20,000 

P CAT

Indemnity = lesser of (F - M) or (((lesser of I or (E - L)) × K) - O) × A × 

D

Q Additional Coverage without OLO

Indemnity = lesser of (F - M) or (((lesser of I or (E - L)) × K) - O) × A × 

D

$40,000 

R Additional Coverage with OLO

Indemnity = lesser of (F - M) or (A × K × B × (lesser of I or (E - L)))

S Remaining amount of insurance (F - M - Q) $35,000 
February 2024 FCIC-25760 29

42 Indemnity Calculation Examples (Continued)

Example 3 First Claim Additional Coverage without OLO

Pre-loss Actual Unit Value More than SV 

Step Action Result

Established with the Application

A Enter share as a decimal percentage 1.0000

B Coverage Level =

for CAT coverage, enter 0.50 

OR

for additional coverage, enter the elected coverage level 

0.75

C Deductible percentage = 1.00 - B 0.25

D Price = 

for CAT coverage, enter 0.55 

OR

for additional coverage, enter 1.00

1.00

E Enter SV $100,000 

F Initial amount of insurance = A × B × D × E $75,000 

G CYD = C × E $25,000 

H If the OLO is not elected, leave blank 

OR

If the OLO is elected, enter 0.10 or

the appropriate decimal OLO trigger value from the SP

Values at the Time of Loss

I Enter Pre-loss Actual Unit Value $160,000 

J Enter Post-loss Damage Value $100,000 

K Percent of Loss = (J ÷ I) 0.6250

L Total amount from previous loss occurrences*

*excluding price and share

M Total amount of any previous indemnity payments

N Total amount of any previous occurrence deductibles

O Occurrence Deductible =

The lesser of (G - M) or (C × I) 

$25,000 

P CAT

Indemnity = lesser of (F - M) or (((lesser of I or (E - L)) × K) - O) × A × 

D

Q Additional Coverage without OLO

Indemnity = lesser of (F - M) or (((lesser of I or (E - L)) × K) - O) × A × 

D

$37,500 

R Additional Coverage with OLO

Indemnity = lesser of (F - M) or (A × K × B × (lesser of I or (E - L)))

S Remaining amount of insurance (F - M - Q) $37,500 
February 2024 FCIC-25760 30

42 Indemnity Calculation Examples (Continued)

Example 4 Second Claim Additional Coverage without OLO

Cumulative Pre-loss Actual Unit Values More than SV

Step Action Result

Established with the Application

A Enter share as a decimal percentage 1.0000

B Coverage Level =

for CAT coverage, enter 0.50 

OR

for additional coverage, enter the elected coverage level 

0.75

C Deductible percentage = 1.00 - B 0.25

D Price = 

for CAT coverage, 0.55 

OR

for additional coverage, enter 1.00

1.00

E Enter SV $100,000 

F Initial amount of insurance = A × B × D × E $75,000 

G CYD = C × E $25,000 

H If the OLO is not elected, leave blank 

OR

If the OLO is elected, enter 0.10 or

the appropriate decimal OLO trigger value from the SP

Values at the Time of Loss

I Enter Pre-loss Actual Unit Value $80,000 

J Enter Post-loss Damage Value $60,000 

K Percent of Loss = (J ÷ I) 0.7500

L Total amount from previous loss occurrences*

*excluding price and share

$37,500

M Total amount of any previous indemnity payments $37,500 

N Total amount of any previous occurrence deductibles $25,000 

O Occurrence Deductible =

The lesser of (G - N) or (C × I) 

$0 

P CAT

Indemnity = lesser of (F - M) or (((lesser of I or (E - L)) × K) - O) × A × 

D

Q Additional Coverage without OLO

Indemnity* = lesser of (F - M) or (((lesser of I or (E - L)) × K) - O) × A 

× D 

*cannot exceed remaining amount of insurance from previous loss

$37,500

R Additional Coverage with OLO

Indemnity* = lesser of (F - M) or (A × K × B × (lesser of I or (E - L)))

*cannot exceed remaining amount of insurance from previous loss

S Remaining amount of insurance (F - M - Q) $0
February 2024 FCIC-25760 31
February 2024 FCIC-25760 32

42 Indemnity Calculation Examples (Continued)

Example 5 First Claim Additional Coverage with OLO

Pre-loss Actual Unit Value Less than SV

Step Action Result

Established with the Application

A Enter share as a decimal percentage 1.0000

B Coverage Level =

for CAT coverage, enter 0.50 

OR

for additional coverage, enter the elected coverage level 

0.75

C Deductible percentage = 1.00 - B 0.25

D Price = 

for CAT coverage, 0.55 

OR

for additional coverage, enter 1.00

1.00

E Enter SV $100,000 

F Initial amount of insurance = A × B × D × E $75,000 

G CYD = C × E $25,000 

H If the OLO is not elected leave blank 

OR

If the OLO is elected, enter 0.10 or

the appropriate decimal OLO trigger value from the SP

0.10

Values at the Time of Loss

I Enter Pre-loss Actual Unit Value $80,000 

J Enter Post-loss Damage Value $60,000 

K Percent of Loss = (J ÷ I) 0.7500

L Total amount from previous loss occurrences*

*excluding price and share

M Total amount of any previous indemnity payments

N Total amount of any previous occurrence deductibles

O Occurrence Deductible =

The lesser of (G - N) or (C × I) 

$20,000 

P CAT

Indemnity = lesser of (F - M) or (((lesser of I or (E - L)) × K) - O) × A × 

D

Q Additional Coverage without OLO

Indemnity = lesser of (F - M) or (((lesser of I or (E - L)) × K) - O) × A × 

D 

R Additional Coverage with OLO

Indemnity = lesser of (F - M) or (A × K × B × (lesser of I or (E - L)))

$45,000 

S Remaining amount of insurance (F - M - R) $30,000 
February 2024 FCIC-25760 33

42 Indemnity Calculation Examples (Continued)

Example 6. Second Claim Additional Coverage with OLO

Cumulative Pre-loss Actual Unit Value Less than SV

Step Action Result

Established with the Application

A Enter share as a decimal percentage 1.0000

B Coverage Level =

for CAT coverage, enter 0.50 

OR

for additional coverage, enter the elected coverage level 

0.75

C Deductible percentage = 1.00 - B 0.25

D Price = 

for CAT coverage, 0.55 

OR

for additional coverage, enter 1.00

1.00

E Enter SV $100,000 

F Initial amount of insurance = A × B × D × E $75,000 

G CYD = C × E $25,000 

H If the OLO is not elected leave blank 

OR

If the OLO is elected, enter 0.10 or

the appropriate decimal OLO trigger value from the SP

0.10

Values at the Time of Loss

I Enter Pre-loss Actual Unit Value $80,000 

J Enter Post-loss Damage Value $40,000 

K Percent of Loss = (J ÷ I) 0.5000

L Total amount from previous loss occurrences (taken from Example 

5)*

*excluding price and share

$45,000

M Total amount of any previous indemnity payments

(taken from Example 5)

$45,000

N Total amount of any previous occurrence deductibles

(taken from Example 5)

$20,000

O Occurrence Deductible =

The lesser of (G - N) or (C × I) 

$5,000

P CAT

Indemnity = lesser of (F - M) or (((lesser of I or (E - L)) × K) - O) × A × 

D

Q Additional Coverage without OLO

Indemnity* = lesser of (F - M) or (((lesser of I or (E - L)) × K) - O) × A 

× D 

*cannot exceed remaining amount of insurance from previous loss

R Additional Coverage with OLO

Indemnity = lesser of (F - M) or (A × K × B × (lesser of I or (E - L)))

*cannot exceed remaining amount of insurance from previous loss

$20,625
February 2024 FCIC-25760 34

S Remaining amount of insurance (F - M - R) $9,375 
February 2024 FCIC-25760 35

43 Completing the Production Worksheet

(1) The completion instructions for the required entry items on the PW in Exhibit 4 are 

“Substantive” (i.e., they are required).

(2) The PW is a form specific to nursery loss adjustment. A separate set of PWs is needed for each 

basic unit loss inspection; a PW must document all the insured plant categories in the basic 

unit. 

(3) If a change or correction is necessary, strike out entry and re-enter correct entry above 

previous entry. The adjuster and insured should initial all changes.

(4) Refer to the LAM for instructions regarding the following:

(a) delayed notices and delayed claims.

(b) corrected claims or fire losses (double coverage) and cases involving uninsured COLs, 

unusual situations, controversial claims, concealment, or misrepresentation.

(c) “No Indemnity Claims” (which must be verified by a nursery inspection or notification 

from the insured that the value of the plants remaining after the loss is equal to or more 

than the SV minus any prior indemnity payments).

Any insurable loss to insurable nursery inventory will reduce the applicable CYD whether 

or not an indemnity is due.

(5) The loss adjuster is responsible for determining if the insured has complied with the 

requirements under the notice and claim provisions of the CP. If the insured has not, the loss 

adjuster should contact the AIP.

(6) All nursery inspections initiated through a NOL are considered final inspections.

(7) Specific loss calculations are discussed in the instructions for the completion of the PW. For 

each loss occurrence, the claim is settled on a unit basis.

44-50 (Reserved)
February 2024 FCIC-25760 36

EXHIBITS 

Exhibit 1 Acronyms and Abbreviations 

The following table provides the acronyms and abbreviations used in this handbook. 

Approved

Acronym/Abbreviation

Term

AIP Approved Insurance Provider

ANSI American National Standard Institute

BP Common Crop Insurance Policy, Basic Provisions

CAT Catastrophic Risk Protection

CIH Crop Insurance Handbook, FCIC-18010

COL Cause of Loss

CSREES Cooperative State, Research, Education, and Extension Service

CYD Crop Year Deductible

CP Nursery Value Select Pilot Crop Provisions

DSSH Document and Supplemental Standards Handbook, FCIC-24040

FAD Final Agency Determination

FCIC Federal Crop Insurance Corporation

GSH General Standards Handbook FCIC-18190

ISH Nursery Value Select Pilot Insurance Standards Handbook, FCIC-24070

LAM Loss Adjustment Manual, FCIC-25010

NOL Notice of Loss

NVR Nursery Value Report

NVS Nursery Value Select

OLO Occurrence Loss Option

PW Production Worksheet

RMA Risk Management Agency

SP SP

SV Selected Value

XPS Excluding Price and Share Calculation
February 2024 FCIC-25760 37

Exhibit 2 Definitions

See the BP, GSH, CP, and ISH for definitions not specific to loss adjustment.

Caliper: The diameter of a tree, measured at a point 6 inches above the ground line if the resulting 

measurement is no more than 4 inches. If the resulting measurement is more than 4 inches, the 

measurement is made at a point 12 inches above the ground line.

Catalog: A document in any format that meets the requirements set forth in section 6(k) issued by the 

nursery and used to advise actual and/or potential wholesale buyers of the amount the insured is charging for 

the purchase of each specific plant that are offered for sale, including all applicable discounts. Such 

documents may be by season or any other basis consistent with the insured’s business practices. If the 

insured has plants in an insured plant category in the nursery that are not yet available for sale and they are 

not included in the catalog, the insured must submit a supplement to the nursery catalog/price list in 

accordance with section 6(k).

Damaged plant: A plant showing signs of physical injury or deterioration to at least ten percent of its physical 

structure, as determined by us, unless otherwise specified in the Special Provisions. 

Dead/zero market value plant: Is a plant that, as determined by us:

(a) Is damaged and exhibits no signs of viability;

(b) Is a liner multipack that has been damaged so that one or more of the cells no longer contain a viable 

plant; 

(c) Is any herbaceous plant damaged to the extent it cannot be sold at the approved sales value;

(d) Is damaged to the extent, determined in accordance with FCIC approved procedures, that it has no 

market value; or

(e) Has disappeared due to an insurable COL (e.g., a hurricane, tornado, or flood) and that the insured can 

substantiate was in the inventory at the time of the loss.

Prohibited plants: Any plant classified by a state or county as illegal to grow or sell in the county in which the 

nursery is located and is uninsurable, even if otherwise qualifying as insurable. Further, insurance shall not 

attach to or be provided for any plant considered a controlled substance under the provisions of the Food 

Security Act of 1985 (Pub. L. 99-198) and the regulations promulgated under the Act by USDA. For example, 

growing or selling plants classified as invasive species is illegal in many states and counties. No indemnity will 

be paid on any such plant. If during any inspection of the nursery or during the settlement of a claim, the AIP 

determines that prohibited plants are being grown or held for sale, the AIP will reduce the inventory value 

(mandatory NVR revision) of any affected unit by the value of the prohibited plant(s). For additional 

information on prohibited plants, refer to Paragraph 28. 

Systematically: Chosen methodically by a process that will sample the appropriate number of plants. So, for 

example: every second, sixth, tenth, etc. plant starting with a randomly selected plant in the first row and 

continuing with the next, third, fourth, etc. row so that entire area is sampled.
February 2024 FCIC-25760 38

Exhibit 2 Definitions (Continued)

Uniformly affected: Characterized by similarly-damaged plants or populations of specific plants with the 

damaged plants evenly distributed through the population or populations of specific plants with clusters of 

damaged plants evenly distributed through the population.
February 2024 FCIC-25760 39

Exhibit 3 Form Standards – Preliminary Appraisal Worksheet for a Specific Plant

An example of a specific plant Appraisal Worksheet that illustrates completed entry items is provided at the 

end of this exhibit. Separate worksheets are completed for each specific plant insured in a basic unit. One 

Appraisal Worksheet is then used to combine values for all specific plants in a plant category within the basic 

unit. Finally, the PW is then used to combine values from different plant categories within the basic unit. 

Standard specific plant Appraisal Worksheet items are numbered consecutively below. See Subparagraph 2D

and Paragraph 33 for additional requirements and information.

Element/Item Number Description

1. Insured’s Name Name of the insured that identifies exactly the person (legal entity) to whom 

the policy is issued.

2. Policy Number Insured’s assigned policy number.

3. Unit Number (1) For an additional level of coverage, enter the basic unit number from 

the NVR after it is verified to be correct.

(2) For CAT level of coverage, enter a unit number to represent the basic 

unit by share and practice.

4. Crop Year Four-digit crop year, as defined in the policy, for which the claim has been 

filed.

5. Cause(s) of Damage Name of the insured cause(s) of loss for this crop as listed in the LAM. If it is 

evident that there is no loss, enter “None.” If an insured COL is coded as 

“Other,” explain in the Remarks section.

6. Date of Damage Enter a specific date of damage. This consists of the first three letters of the 

month and the specific date (e.g., Sep 11) or, for additional damage due to a 

subsequent loss, with attention to a specific date of damage occurring 

following any applicable increased amount of insurance (due to an upwardrevised NVR) in effect at the time damage was occurring.

7. Inspection Number Number of the inspection for the crop year (e.g., 1).

8. Practice Code Three-digit code, entered exactly as specified on the SP for the cropping 

practice (practice) carried out by the insured, e.g., 007 (Field Grown) or 008 

(Container), as applicable.

9. State Code Enter the numeric state code (e.g., 37).

10. County Code/Zip Code Enter the numeric county code and zip code (e.g., 115/28743).

11. CAT Policy Check the appropriate box; “Yes” if the insured elected CAT level of coverage 

or “No” if the insured elected an additional level of coverage.
February 2024 FCIC-25760 40

Exhibit 3 Form Standards – Preliminary Appraisal Worksheet for a Specific Plant (Continued)

Element/Item Number Description

12. Unit Structure Check the appropriate box, depending on the unit structure the insured 

elected:

(1) Basic Units by plant category;

(2) Basic Units by non-contiguous land; or

(3) Basic Units by share. 

Only additional level of coverage policies may have basic units by plant 

category or by non-contiguous land. CAT level of coverage policies must have 

basic units only by share and practice.

13. Plant Category Code Enter the three-digit code for each plant category as specified on the SP.

14. Field ID For field grown plants in separate locations but insured as a single BU, enter 

any combination of letters and/or numbers up to 5 characters, identifying the 

location of the specific plants appraised (e.g., B2), and provide a separate 

Preliminary Appraisal Worksheet for a Specific Plant for each location. 

Otherwise leave blank.

15. Specific Plant 

Name/Size

Include specific plant name and size details as necessary to establish the plant 

identity approved value (item 16) for the Appraisal Worksheet line.

16. Approved Sales Value Enter the approved sales value of the specific plant as determined in 

accordance with Paragraph 25B.

17. Number of the 

Specific Plant in the 

Unit.

Enter the total number of the specific plant in the unit as determined by 

procedures described in Paragraph 27. 

18. Required Number of 

Plants in the Sample

Enter the appropriate number based on the value entered in item 17 and the 

information in Exhibit 8.

19. Actual Number of 

Plants in the Sample

Enter the appropriate number based on the value entered in item 17 and the 

information in Exhibit 8.

20. Adjuster 

Determination of 

Number of Plants in 

Sample by Condition

For a specific plant from a sample in a basic unit, enter the number in each of 

the following damage groups:

20a. UD: Undamaged.

20b. D: Damaged.

20c. D/Z: Dead/Zero Market Value.

21. Final Determination of 

Number of Plants in 

Sample by Condition

For a specific plant from a sample in a basic unit, enter the number in each of 

the following damage groups:

21a. UD: Undamaged.

21b. RD: Retained Damaged.

21c. DD: Discarded Damaged.

21d. D/Z: Dead/Zero Market Value.
February 2024 FCIC-25760 41

Exhibit 3 Form Standards – Preliminary Appraisal Worksheet for a Specific Plant (Continued)

Element/Item Number Description

22. Damage Factor For a specific plant (item 15) in a specific location (item 14), enter the damage 

factor for the damage groups RD, DD, and D/Z: ***

22a. UD: Undamaged = 0.00.

22b. RD: Retained Damaged = 0.50. 

22c. DD: Discarded Damaged = 0.75.

22d. D/Z: Dead/Zero Market Value = 1.00; subsequent loss = 0.50.

Note: For a subsequent loss within the crop year, the insured must 

destroy a retained damaged plant that is determined to be a 

Dead/Zero Market Value plant.

23. Specific Plant Sample 

Pre-loss Value

Enter the product of the Approved Sales Value of the Specific Plant multiplied 

by the Actual Number of Plants in the Sample (item 16 × item 19). Round to 

two decimal places.

24. Specific Plant Sample 

Post-loss Damage 

Value

Enter the product of the Approved Sales Value of the Specific Plant multiplied 

by the sum of the Final Determination of the Number of Plants in the Sample 

by Condition multiplied by their respective Damage Factor by Condition (item 

16 × ((item 21b × item 22b) + (item 21c × item 22c) + (item 21d × item 22d))). 

Round to two decimal places.

25. Percent of Loss Enter the result of dividing the Specific Plant Sample Post-loss Damage Value 

by the Specific Plant Sample Pre-loss Value (item 24 ÷ item 23). Round to six 

decimal places.

26. Pre-loss Value of the 

Specific Plant in the 

Unit

Enter the product of the Approved Sales Value of the Specific Plant multiplied 

by the Number of the Specific Plant in the Unit (item 16 × item 17). Round to 

two decimal places.

27. Post-loss Damage 

Value of the Specific 

Plant in the Unit

Enter the product of the Percent of Loss multiplied by the Pre-loss Value of the 

Specific Plant in the Unit (item 25 × item 26). Round to two decimal places.

28. Remarks On the last page of the Appraisal Worksheet for a Specific Plant, enter:

(1) Date of appraisal.

(2) Documentation for any adjustment in plant value due to prior damage, 

uninsured causes, or oversized containers.

(3) Documentation of method(s) used by the insured to track previously 

damaged plants.

(4) Cause assessed for uninsured COL appraisals.
February 2024 FCIC-25760 42

Exhibit 3 Form Standards – Preliminary Appraisal Worksheet for a Specific Plant (Continued)

Element/Item Number Description

28. Remarks (Continued) (5) Plants grown in the nursery not belonging to the insured or plants 

belonging to the insured but grown in a nursery not owned by the 

insured. 

(6) Applicable hardiness zone determined at the USDA-ARS website or 

successor Web site. If the insured’s growing location(s) overlap(s) 

multiple hardiness zones within each county, use the warmest 

hardiness zone (e.g., if one growing location is in hardiness zones 7A 

and 7B, the insured uses hardiness zone 7B, since it is the warmer of 

the two hardiness zones).

(7) Document whether the insured assigned responsibility regarding 

whether damaged plants will be retained or discarded to the loss 

adjuster. 

(8) Any other pertinent information pertaining to the inspection.

If additional space is needed, use and attach a Special Report and refer to the 

attachment in the Remarks section.

29. Insured’s Signature 

and Date

Insured’s (or insured’s authorized representative’s) signature and date. Before

obtaining insured’s signature, review all entries on the Appraisal Worksheet 

with the insured, particularly explaining codes, etc., which may not be readily 

understood.

30. Adjuster’s Signature, 

Code Number, and 

Date 

Signature of adjuster, code number, and date signed after the insured (or 

insured’s authorized representative) has signed. For an absentee insured, 

enter adjuster’s code number only. The signature and date will be entered 

after the absentee has signed and returned the Appraisal Worksheet.

31. Consultant’s Name 

and Date

Name of consultant and date, if present and assisting with the appraisal.

32. Page Number Page number and total number of pages for the unit/category.

Example: Page 1 of 1, Page 1 of 2, Page 2 of 2, etc.
February 2024 FCIC-25760 43

Exhibit 3 Form Standards – Preliminary Appraisal Worksheet for a Specific Plant (Continued)

This form example does not illustrate all required entry items (e.g., signatures, dates, etc.).
February 2024 FCIC-25760 44

Exhibit 4 Form Standards – Appraisal Worksheet

An example of an Appraisal Worksheet that illustrates completed entry items is provided at the end of this 

exhibit. Separate Appraisal Worksheets are completed for each plant category insured in a basic unit. The PW

is then used to combine values from different plant categories within the basic unit. Standard Appraisal 

Worksheet items are numbered consecutively below. See Subparagraph 2D and Paragraph 33 for additional 

requirements and information.

Element/Item Number Description

1. Insured’s Name Name of the insured that identifies exactly the person (legal entity) to whom 

the policy is issued.

2. Policy Number Insured’s assigned policy number.

3. Unit Number (1) For an additional level of coverage, enter the basic unit number from 

the NVR after it is verified to be correct.

(2) For CAT level of coverage, enter a unit number to represent the basic 

unit by share and practice.

4. Crop Year Four-digit crop year, as defined in the policy, for which the claim has been 

filed.

5. Cause(s) of Damage Name of the insured cause(s) of loss for this crop as listed in the LAM. If it is 

evident that there is no loss, enter “None.” If an insured COL is coded as 

“Other,” explain in the Remarks section.

6. Date of Damage Enter a specific date of damage. This consists of the first three letters of the 

month and the specific date (e.g., Sep 11) or, for additional damage due to a 

subsequent loss, with attention to a specific date of damage occurring 

following any applicable increased amount of insurance (due to an upwardrevised NVR) in effect at the time damage was occurring.

7. Inspection Number Number of the inspection for the crop year (e.g., 1).

8. Practice Code Three-digit code, entered exactly as specified on the SP for the cropping 

practice (practice) carried out by the insured, e.g., 007 (Field Grown) or 008 

(Container), as applicable.

9. State Code Enter the numeric state code (e.g., 37).

10. County Code/Zip Code Enter the numeric county code and zip code (e.g., 115/28743).

11. CAT Policy Check the appropriate box; “Yes” if the insured selected CAT level of coverage 

or “No” if the insured selected an additional level of coverage.
February 2024 FCIC-25760 45

Exhibit 4 Form Standards – Appraisal Worksheet (Continued)

Element/Item Number Description

12. Unit Structure Check the appropriate box, depending on the unit structure the insured 

elected:

(1) Basic Units by plant category;

(2) Basic Units by non-contiguous land; or

(3) Basic Units by share; 

Only additional level of coverage policies may have basic units by plant 

category or by non-contiguous land. CAT level of coverage policies must have 

basic units only by share and practice.

13. Plant Category Code Enter the three-digit code for each plant category as specified on the SP.

14. Field ID Enter any combination of letters and/or numbers up to 5 characters, 

identifying the location of the plants (e.g., B2).

15. Specific Plant 

Name/Size

Include specific plant name and size for all plants in the category being 

documented. Make one entry for each insured specific plant from the 

corresponding Preliminary Appraisal Worksheet for a Specific Plant.

16. Specific Plant Pre-loss 

Actual Unit Value

Enter the appropriate value from item 26 of the Preliminary Appraisal 

Worksheet for the Specific Plant.

17. Specific Plant Postloss Damage ValueEnter the appropriate value from item 27 of the Preliminary Appraisal 

Worksheet for the Specific Plant.

18. Pre-loss Actual Unit 

Value – This Page

Enter the sum of the item 16 values on each Appraisal Worksheet page. Enter 

values rounded to whole dollars.

19. Post-loss Damage 

Value - This Page

Enter the sum of the item 17 values on each Appraisal Worksheet page. Enter 

values rounded to whole dollars.

20. Pre-loss Actual Unit 

Value - Category

On the last page enter the sum of the item 18 values on all the Appraisal 

Worksheet pages. Enter values rounded to whole dollars.

21. Post-loss Damage 

Value - Category

On the last page enter the sum of the item 19 values on all the Appraisal 

Worksheet pages. Enter values rounded to whole dollars.

22. Remarks On the last page of the Appraisal Worksheet for each plant category in the 

basic unit, enter:

(1) Date of appraisal.

(2) Documentation for any adjustment in plant value due to prior 

damage, uninsured causes, or oversized containers.

(3) Cause assessed for uninsured COL appraisals, identified by specific 

plant.
February 2024 FCIC-25760 46

Exhibit 4 Form Standards – Appraisal Worksheet (Continued)

Element/Item Number Description

22. Remarks (Continued) (4) Applicable hardiness zone determined at: planthardiness.ars.usda.gov

or successor Web site. If the insured’s growing location(s) overlap(s) 

multiple hardiness zones within each county, use the warmest 

hardiness zone (e.g., if one growing location is in hardiness zones 7A 

and 7B, the insured uses hardiness zone 7B, since it is the warmer of 

the two hardiness zones).

(5) Any other pertinent information pertaining to the inspection.

If additional space is needed, use and attach a Special Report and refer to the 

attachment in the Remarks section.

23. Insured’s Signature 

and Date

Insured’s (or insured’s authorized representative’s) signature and date. 

Before obtaining insured’s signature, review all entries on the Appraisal 

Worksheet with the insured, particularly explaining codes, etc., which may 

not be readily understood.

24. Adjuster’s Signature, 

Code Number, and 

Date 

Signature of adjuster, code number, and date signed after the insured (or 

insured’s authorized representative) has signed. For an absentee insured, 

enter adjuster’s code number only. The signature and date will be entered 

after the absentee has signed and returned the Appraisal Worksheet.

25. Consultant’s Name 

and Date

Name of consultant and date, if present and assisting with the appraisal.

26. Page Number Page number and total number of pages for the unit/category.

Example: Page 1 of 1, Page 1 of 2, Page 2 of 2, etc.
February 2024 FCIC-25760 47

Exhibit 4 Form Standards – Appraisal Worksheet (Continued)

This form example does not illustrate all required entry items (e.g., signatures, dates, etc.).
February 2024 FCIC-25760 48

Exhibit 5 Form Standards – Production Worksheet

Example PWs that illustrates completed entry items are provided at the end of this exhibit. Standard PW

items are numbered consecutively below. See Subparagraph 2D and Paragraph 41 for additional 

requirements and information.

Element/Item Number Description

1. Crop/Code # “Nursery Value Select” (1010).

2. Unit Number Unit number from the NVR, after it is verified to be correct.

3. Cropping Practice Three-digit code, entered exactly as specified on the SP for the cropping 

practice (practice) carried out by the insured, e.g., 007 (Field Grown) or 008 

(Container), as applicable.

4. Location Description Land location that identifies the legal description, if available, and the location 

of the basic unit (e.g., section, township, and range; FSA Farm Numbers; FSA, 

CLU and tract numbers; GPS identifications; or Grid identifications) as 

applicable for the crop.

5. Date(s) of Damage First three letters of the month(s) during which the determined insured 

damage occurred for the inspection and cause(s) of damage listed in item 6. 

For progressive damage, enter additional dates of damage in the narrative 

section or on a Special Report, as needed. Include the specific date (e.g., Sep 

11) and COL (e.g., freeze) for additional COL events. For a second specific date 

occurring within any applicable increased amount of insurance (due to an 

upward-revised NVR) in effect at the time damage was occurring.

6. Causes(s) of Damage Name of the determined insured cause(s) of damage for this crop as listed in 

the LAM for the date of damage listed in item 5 above for this inspection. If it 

is evident that no indemnity is due, enter “No Indemnity Due” and enter the 

insured cause of damage in the Narrative or on a Special Report. If the insured 

cause(s) of damage is(are) coded as “Other,” explain in the Narrative. Enter 

additional causes of damage as described in item 5 above.

7. Insured Cause % Whole percent of damage for the insured cause of damage listed in item 6 

above for this inspection. Enter additional “Insured Cause %” in the Narrative 

or on a Special Report. The total of all “Insured Cause %” including those 

entered in the Narrative must equal 100%.

Example: Additional entries for items 5-7 in the Narrative or on a Special 

Report should address multiple COL and/or multiple dates of 

damage, and insured cause percentages: 

5. Date(s) of Damage SEP 5 SEP 5 SEP 5

6. Cause(s) of Damage Hurricane Flood Hail

7. Insured Cause % 50 20 20

Narrative: Additional date of damage – SEP 5

Cause of Damage – Tornado

Insured Cause % – 10%

8. Company/Agency Name of the AIP and agency servicing the contract.

9. Name of Insured Name of the insured that identifies exactly the person (legal entity) to whom 

the policy is issued.
February 2024 FCIC-25760 49

Exhibit 5 Form Standards – Production Worksheet (Continued)

Element/Item Number Description

10. Claim # Claim number as assigned by the AIP.

11. Policy # Insured’s assigned policy number.

12. Crop Year Four-digit crop year, as defined in the policy, for which the claim is filed.

13. Date Notice of Loss The date the notice of damage was given for the unit in item 2. Enter the Date 

of Notice (MM/DD/YYYY).

14. Assign. of Indemnity Check the appropriate box, check “Yes” only if an assignment of indemnity for 

nursery is in effect for the crop year; otherwise, check “No.” Refer to the LAM.

15. Unit Division Check the appropriate box:

(1) by plant category, if insured selected basic units by plant category;

(2) by non-contiguous land, if insured selected basic units by noncontiguous land; or

(3) by share, if insured selected basic units by share and practice.

Only additional level of coverage policies may have basic units by plant 

category or by non-contiguous land. All CAT level of coverage policies must 

have basic units only by share and practice. 

Enterprise, optional and whole-farm units are not allowed.

16. Transfer of Right to 

Indemnity 

Check the appropriate box, check “Yes” only if a transfer of right to an 

indemnity is in effect for the unit for the crop year; otherwise, check “No.” 

Refer to the LAM.

17. SV Enter the value declared on the NVR of the insurable specific plants in a basic 

unit in whole dollars.

18. Companion Policies (1) If no other person has a share in the unit (insured has 100 percent 

share), make no entry.

(2) In all cases where the insured has less than a 100 percent share of a 

loss-affected basic unit, ask the insured if the other person sharing in 

the unit has a multiple-peril crop insurance contract (i.e., not crop-hail, 

fire, etc.). If the other person does not, enter “None.”

(a) If the other person has a multiple-peril contract and it can be 

determined that the same AIP services it, enter the contract 

number. Handle these companion policies according to AIP 

instructions. 

(b) If the other person has a multiple-peril crop insurance contract 

and a different AIP or agent services it, enter the name of the 

AIP and/or agent (and contract number) if known.
February 2024 FCIC-25760 50

Exhibit 5 Form Standards – Production Worksheet (Continued)

Element/Item Number Description

18. Companion Policies 

(Continued) 

(c) If unable to verify the existence of a companion contract, enter 

“Unknown,” and contact the AIP for further instructions.

(3) Refer to the LAM for information regarding companion contracts. 

Differing ownership (share) constitutes a basis for additional units.

SECTION I – IMMEDIATELY PRIOR TO THIS LOSS

Element/Item Number Description

19a. Basic Unit XPS 

Liability

Basic unit amount of insurance, prior to reduction for price election percent 

and share. It is the current SV reported on the most recent NVR (item 17) 

multiplied by the coverage level percent (item 22a) as a decimal, rounded to 

whole dollars. Complete this entry on only the first page of each inspection 

when multiple-page unit claim forms are required.

19b. Basic Unit Previous 

Indemnity(ies) 

Sum of “Preliminary Indemnities” from PWs as calculated during previous loss 

occurrences for the unit.

(1) For all cases, if the Inspection Number (item 21) equals 1 enter “0.”

(2) Enter the sum of all “Preliminary Indemnities” (item 34) calculated 

during previous loss occurrences.

Complete this entry on only the first page of each inspection when multiplepage unit claim forms are required.

19c. Basic Unit Effective 

XPS Liability

“Basic Unit XPS Liability” (item 19a) minus “Basic Unit Previous Indemnities” 

(item 19b).

20a. Basic Unit CYD It is the current SV (item 17) multiplied by (1.000 minus the coverage level 

percent as a decimal), in whole dollars. Complete this entry on only the first 

page of each inspection when multiple-page unit claim forms are required.

20b. Basic Unit Previous 

Occurrence 

Deductible 

The applied unit Occurrence Deductible from previous loss occurrences for the 

unit. 

(1) For all cases, if the Inspection Number (item 21) equals 1 enter “0.”

(2) Enter the sum of all “Occurrence Deductibles” (item 31) applied from 

previous loss occurrences.

Complete entry on only the first page of each inspection when multiple-page 

unit claim forms are required.

20c. Remaining Deductible “Basic Unit CYD” (item 20a) minus “Basic Unit Previous Occurrence 

Deductible” (item 20b).
February 2024 FCIC-25760 51

Exhibit 5 Form Standards – Production Worksheet (Continued)

SECTION II – THIS LOSS

There are six item 26, “Category” columns (26a – 26f) on the PW. A separate PW is required for each basic 

unit, including each location if the insured selected basic units by non-contiguous land. For basic units with 

multiple plant categories applicable, use one column for each insured plant category and enter the same unit 

number on all the plant categories (e.g., 0001-0001 BU, etc.). Use additional pages if the unit has more than 

six plant categories insured. 

If basic units by plant category are applicable, use column 26a to document the loss. For CAT level of coverage 

policies and additional level of coverage policies with basic units with multiple types, use columns 26a – 26f as 

applicable to enter information and “Summary this page” and Total columns to calculate the loss. Complete 

“Total” column on the first PW page to document the unit loss.

Element/Item Number Description

21. Inspection Number If the inspection is due to a notice of damage, enter the number of the 

inspection (e.g., 1), otherwise leave blank.

22a. Coverage Level % Enter the elected coverage level percent to four decimal places.

22b. OLO Check the appropriate box for OLO.

23. Insurable Unit Value The lesser of the SV reported on the most recent NVR (item 17) minus the 

Sum of Previous Insured Losses (item 24) or the value in the “Total” for item 

27.

24. Sum of Previous 

Insured Losses

“Basic Unit Previous Indemnity” (item 19b) plus “Basic Unit Previous 

Occurrence Deductible” (item 20b) from any previous Claim Forms from the 

current Crop Year.

25. Damage Similar to 

Other Nurseries in the 

Area?

Enter, “Yes” if amount and cause of damage due to insurable causes is similar 

to the experience of other nurseries in the area; otherwise enter “No.” 

Explain in the Narrative in detail documenting exactly why you believe the 

damage is similar or is different.

26. Plant Category For each plant category in the basic unit, enter the plant category code in 

items 26a through 26f, as necessary. If appropriate because of the number of 

insured categories in the basic unit use additional pages, as necessary.

Items 27 through 35 In the “Summary This Page” column enter the appropriate values for the sum 

of all categories on the page. In the “Total” column on the first page of the 

PW enter the sum of values from the respective “Summary This Page” items 

from all PW pages for the basic unit.

27. Pre-loss Actual Unit 

Value

For each plant category entered in item 26, enter the amount from item 20 of 

the Nursery Appraisal Worksheet in whole dollars.

27. Pre-loss Actual Unit 

Value “Summary This 

Page” Column

Enter the sum of the entries in item 27 on this page.

27. Pre-loss Actual Unit 

Value “Total” Column

Enter the sum of the entries in item 27 “Summary This Page” column on all 

pages in the PW for the basic unit.
February 2024 FCIC-25760 52

Exhibit 5 Form Standards – Production Worksheet (Continued)

Element/Item Number Description

28. Post-loss Damage 

Value

For each plant category entered in item 26, enter the amount from item 21 of 

the Nursery Appraisal Worksheet in whole dollars. 

28. Post-loss Damage 

Value “Summary This 

Page” Column

Enter the sum of the entries in item 28 on this page.

28. Post-loss Damage 

Value “Total” Column

Enter the sum of the entries in item 28 “Summary This Page” column on all 

pages in the PW for the basic unit.

29. Percent of Loss “Total” 

Column

Enter the result of dividing the Post-loss Damage Value (item 28) “Total” 

column value by the Pre-loss Actual Unit Value (item 27) “Total” column 

value. Round to four decimal places.

30. Amount of Insured 

Loss “Total” Column

Enter, in whole dollars, the Percent of Loss (item 29) multiplied by the 

Insurable Unit Value (item 23). ***

31. Occurrence Deductible 

“Total” Column

Enter, in whole dollars, the lesser of the result of multiplying the product of 

the deductible percentage (1-coverage level (item 22a)) by the Pre-loss Actual 

Unit Value (“Total” column item 27) or the Remaining Deductible (Item 20c) 

(for catastrophic risk protection, the indemnity before application of 55 

percent). 

For OLO policies, leave blank.

32. Percent Share “Total” 

Column

Enter the insured’s share rounded to four decimal places (e.g., 1.0000).

33. Price Election Percent 

“Total” Column

For additional coverage, enter 1.00.

For CAT coverage, enter 0.55.

34. Preliminary Indemnity 

“Total” Column

Enter in whole dollars:

for OLO policies (item 20b), leave blank.

for all other policies, enter the greater of zero or the result of subtracting the 

occurrence deductible (item 31) from the value in the “Total” column of the 

Amount of Insured Loss “Total” (item 30). 

if the value is zero, enter “no indemnity due” in the “Summary this page” 

column for item 32.

35. Indemnity “Total” 

Column

If the entry in “Summary this page” column for item 35 is “no indemnity due,” 

enter zero. Otherwise, 

(1) for OLO policies: 

(a) enter “no indemnity due” if the percent of loss (item 29) is less 

than 10 percent, or the limit otherwise specified in the SP. 
February 2024 FCIC-25760 53

Exhibit 5 Form Standards – Production Worksheet (Continued)

Element/Item Number Description

35. Indemnity “Total” 

Column (Continued)

(b) otherwise, multiply the percent of loss (item 29) by the 

coverage level (item 22a); and multiply the result by the lesser 

of the Pre Loss Actual Unit Value (item 27 “Total” column) or 

the SV (item 17) minus the Total Amount of Any Previous 

Indemnity (item 19b), and multiply the result by the Percent 

Share (item 32). Enter the result rounded to whole dollars. 

(2) for all other policies, enter the lesser of SV (item 17) multiplied by the 

Coverage Level (item 22a), the Price Election Percent (item 33), and 

the Percent Share (item 32) minus the Total Amount of Any Previous 

Indemnity (item 19b) or the Preliminary Indemnity (item 34) 

multiplied by the Price Election Percent (item 33) and the Percent 

Share (item 32), rounded to whole dollars.

36. Narrative If more space is needed, document on a Special Report, and enter “See 

Special Report.” Attach the Special Report to the PW. 

(1) Explain any uninsured causes, unusual, or controversial cases.

(2) If there is an appraisal for uninsured causes due to hail/fire exclusion, 

show the original hail/fire liability per acre and the hail/fire indemnity 

per acre.

(3) State that there is “No other fire insurance” when fire damages or 

destroys the insured crop and it is determined that the insured has no 

other fire insurance. Refer to the LAM for more information.

(4) Explain any errors found on the NVR.

(5) Explain a “No” checked in item 24.

(6) Explain any difference between the date of inspection and signature 

dates. For an absentee insured, enter the date of the inspection and 

the date of mailing the PW for signature.

(7) When any other adjuster or supervisor or consultant accompanied the 

adjuster on the inspection, enter the code number of any other 

adjuster, or supervisor, and the name of any consultant present 

during the inspection and the date of inspection.

(8) Explain any delayed notices or delayed claims as instructed in the 

LAM.
February 2024 FCIC-25760 54

Exhibit 5 Form Standards – Production Worksheet (Continued)

Element/Item Number Description

36. Narrative 

(Continued) 

(9) Specify the type of insects or disease when the insured cause of 

damage or loss is listed as insects or disease. Explain why the insect 

and/or disease could not be controlled.

(10) Document the calculation for the plants missing from the catalog.

(11) Document any revisions to the NVR that result in a reduced SV due to 

reporting of prohibited plants as insurable.

(12) If the insured incurred a paid crop insurance indemnity during any of 

the three most recent crop years due to excess moisture or flood that 

was not associated with a named storm, document the measures 

taken to mitigate future losses from excess moisture or flood.

(13) Document any other pertinent information, including photographs 

taken as documentation.

(14) Verify and document the applicable hardiness zone determined at: 

planthardiness.ars.usda.gov, or successor website.

36. Insured’s Signature 

and Date

Insured’s (or insured’s authorized representative’s) signature and date. 

Before obtaining Insured’s signature, review all entries on the PW with the 

insured or the insured’s authorized representative, particularly explaining 

codes, etc., that may not be readily understood.

37. Adjuster’s Signature, 

Code Number, and 

Date 

Signature of adjuster, code number, and date signed after the insured (or 

insured’s authorized representative) has signed. For an absentee insured, 

enter adjuster’s code number only. The signature and date will be entered 

after the absentee has signed and returned the PW.

38. Witness’ Signature 

and Date

Signature of witness and date signed after the insured (or insured’s 

authorized representative) and adjuster has signed. For an absentee insured 

or if signatures are not witnessed, leave blank.

39. Other Signature(s) 

and Date(s)

Signature(s) of others if present when the loss adjustment was conducted; 

e.g., consultants, etc., and the date signed.

40. Page Numbers Page numbers 

Example: Page 1 of 1, Page 1 of 2, Page 2 of 2, etc.
February 2024 FCIC-25760 55

Exhibit 5 Form Standards – Production Worksheet (Continued)

This form example does not illustrate all required entry items (e.g., signatures, dates, etc.).
February 2024 FCIC-25760 56

Exhibit 6 Characteristic Nursery Plant Damage

Damage to nursery plants includes, but may not be limited to, the following:

1. Lost meristems (growing points on leader, branches, tap root, and branch root);

2. Lost foliage;

3. Lost branches (leader, scaffold branch, boughs and twigs);

4. Lost roots (tap root, branch root, and fibrous roots);

5. Lost flowers;

6. Lost fruits;

7. Broken foliage (folded, perforated, torn);

8. Broken branches;

9. Bruised foliage;

10. Bruised branches;

11. Bruised trunks;

12. Bruised flowers;

13. Bruised fruits;

14. Desiccated stems; 

15. Desiccated roots; 

16. Desiccated foliage; 

17. Desiccated flowers; 

18. Desiccated fruits; 

19. Discolored stems;

20. Discolored foliage;

21. Discolored flowers;

22. Discolored fruits; 

23. Torn stems;

24. Torn roots;
February 2024 FCIC-25760 57

Exhibit 6 Characteristic Nursery Plant Damage (Continued)

25. Torn flowers;

26. Torn fruits;

27. Distorted stems;

28. Distorted roots;

29. Distorted foliage;

30. Distorted flowers;

31. Distorted fruits;

32. Necrotic stems;

33. Necrotic roots;

34. Necrotic foliage;

35. Necrotic flowers;

36. Necrotic fruits; or

37. Any combination of the above.
February 2024 FCIC-25760 58

Exhibit 7 Nursery Plant Damage Assessment and Determination Factors

A. Damage Factors

(1) For Liners and Annual Plants Plant Categories

1. Undamaged

(Adjuster Determined)

2. Dead/Zero Market Value 

(Adjuster Determined)

Description Less than 10% damage

Dead or damaged to the extent 

the plant has zero market value 

and cannot be marketed

Damage 

Factor 0% 100%

Prior to receiving an indemnity, the AIP must verify the insured destroyed or disposed of the 

dead/zero market value plants by a method approved by the AIP.

An insured may move a plant in a sample from the Dead/Zero Market Value group to the 

Undamaged group during the adjustment, but movement the other direction would require 

input from a disinterested third party.

(2) For All Other Plant Categories

1. Undamaged 

(Adjuster 

Determined)

2. Damaged 

(Adjuster 

Determined)

2. Damaged 

(Adjuster 

Determined)

3. Dead/Zero 

Market Value 

(Adjuster 

Determined)

(a) Retained 

Damaged 

(Insured 

Determined*)

(b) Discarded 

Damaged 

(Insured 

Determined*)

Description Less than 10% 

damage

≥10% 

damage, does 

not meet 

conditions of 

Dead/Zero 

Market Value, 

and will be 

carried to 

market

≥10% 

damage, does 

not meet 

conditions of 

Dead/Zero 

Market Value, 

and will not 

be carried to 

market

Dead or 

damaged to 

the extent the 

plant has zero 

market value 

and cannot be 

marketed

Damage 

Factor 0% 50% 75% 100%

Prior to receiving an indemnity, the AIP must verify the insured destroyed or disposed of the 

discarded damaged and dead/zero market value plants by a method approved by the AIP.

*See Paragraph 28(1)
February 2024 FCIC-25760 59

Exhibit 7 Nursery Plant Damage Assessment and Determination Factors (Continued)

Uniform Damage Unequally Distributed Damage

B. Factors that Can Lead to Dead/Zero Market Value Determinations

Factors that impact assessments of Dead/Zero Market Value and the minimum damage that 

could lead to a plant being characterized as having no market value are provided by category in 

the table below. For each plant in the category listed in column (A) below, if the conditions in 

column (B) and (C) are met, then the plant will be considered Dead/Zero Market Value.

(A) Category (B) Minimum percent 

physical damage 

resulting in complete 

loss of value*

(C) Explanation

Liners 15 Liners with at least one cell with a dead or missing plant.

Annual Plants 

and Plants 

Grown for 

One Year or 

Less

10 Symmetry is generally required for larger plants. Plants with 10 

percent or more damage distributed unequally may be considered 

to have lost all their value. Limited seasonal market period restricts 

recovery window.

Herbaceous 

Biennial and 

Perennial 

Plants

20 Symmetry is a required quality element for marketability. Plants 

with 20 percent or more damage distributed unequally may be 

considered to have lost all their value. Plants with less damage may 

recover over time. Limited seasonal market period restricts 

recovery window.

Foliage Plants 10 Symmetry is generally required for larger plants. Plants with 10 

percent or more damage distributed unequally may be considered 

to have lost all their value.

Vines 20 Plants with 20 percent or more damage distributed unequally may 

be considered to have lost all their value. Plants with less damage 

may recover over time. Limited seasonal market period restricts 

recovery window.

Broadleaf 

Evergreen 

Trees and 

Shrubs

5 Damage to graft union; loss of a single scaffold branch; loss of 

leader; failure to retain required quality attributes that existed 

before the loss.

Coniferous 

Trees and 

Shrubs

5 Damage to graft union; loss of a single scaffold branch; loss of 

leader; failure to retain required quality attributes that existed 

before the loss.

Deciduous 

Trees and 

Shrubs

5 Damage to graft union; loss of a single scaffold branch; failure to 

retain required quality attributes that existed before the loss.

Palms <1 Loss of the apical meristem is eventually fatal.

Cycads <1 Loss of the apical meristem is eventually fatal.

*Note: These values are minimums that require careful study of a plant to determine if 

the total value has been lost due to an insurable COL, any plant with 25 percent 

or more damage is considered to have zero market value.
February 2024 FCIC-25760 60

Exhibit 8 Minimum Sample Sizes

Sampling Frequency

Number of Plants in the 

Uniformly Affected 

Population

Sample at Least:

(Percent, Rounded up to 

the Nearest Whole 

Number)

But not Fewer 

Than:

1-10 100

11-50 40 10 plants

51-100 25 20 plants

101-500 8 25 plants

501-1,000 5 40 plants

1,001-5,000 2 50 plants

5,000 or more 1 100 plants
February 2024 FCIC-25760 61

Exhibit 9 Cold Protection Assignments Based on Plant Category Within Hardiness Zones

For container grown plants, if required by Section 10(c)(3) of the CP or the SP, the following cold protection methods are required for each plant 

category.

Cold Protection Assignments Based on Plant Category Within Hardiness Zones1,2

Plant Category HZ 1 

-60o

HZ 2 

-50o

HZ 3 

-40o

HZ 4 

-30o

HZ 5 

-20o

HZ 6 

-10o

HZ 7 

0o

HZ 8 

+10o

HZ 9 

+20o

HZ 10 

+30o

HZ 11 

+40o

HZ 12 

+50o

HZ 13 

+60o

Liners: Annuals 3 A A A A A A A A A A R R R

Liners: Perennials 4 A A C C C D D F G K R R R

Annual Plants & Plants Grown 

for One Year or Less

A A A A A A A A A A R R R

Herbaceous Biennial and 

Perennial Plants

A B C D E H J K N P R R R

Broadleaf Evergreen Trees 

and Shrubs

A A C C F I J N N P R R R

Coniferous Trees and Shrubs B B C D F I J N N P R R R

Deciduous Trees and Shrubs A B C D F I K N N P R R R

Vines A B C D E H J K N P R R R

Foliage Plants A A A A A A A A A A R R R

Palms A A A A A A A A J K R R R

Cycads A A A A A A A A A J R R R

1 Cold Protection Requirements assigned for Plant Category are based on Good Nursery Practices. Plants with a Hardiness Zone Two Hardiness Zones warmer than the Grower's 

Hardiness Zone are not insurable unless otherwise allowed by Special Provisions.

2 Refer to Exhibit 10 for the cold protection assignments in the matrix.

3 Liners consisting of Annual Plants, Palms, Cycads and Perennials grown as Annuals.

4 Liners consisting of Perennials other than Palms, Cycads and Perennials grown as Annuals.
February 2024 FCIC-25760 62

Exhibit 10 Operational Cold Protection Requirements

Ranked in Order of Most Protective to Least Protective

A. Glass, Lexan types, Polycarbonate sheeting or Double Translucent Poly Covered Walk-in Structure or an 

environmentally controlled building with plants standing up or lying down, with appropriate 

supplemental heat, humidity and irrigation to prevent cold, freeze, heat or desiccation damage.

B. Structureless Plant Bed with plants laid down and consolidated container-to-container, with Poly plus 

8”-12” of Hay plus Poly plus 8”-12” of Hay completely covering the plants and containers.

C. Structureless Plant Bed with plants laid down and consolidated container-to-container, with Poly plus 

8”-12” of Hay plus Poly completely covering the plants and containers.

D. Structureless Plant Bed with plants laid down and consolidated container-to-container, with Poly and 

then 8”-12” of Hay completely covering the plants and containers.

E. Lexan type or Double Translucent Poly Covered Walk-in Structure with plants consolidated containerto-container, standing up or lying down, with thermo blanket (Fleece Fabric, Micro Foam, Spun-bound 

Fabric) completely covering the plants and containers.

F. Below Ground Pot-in-Pot System with adequate drainage to prevent water logging and excess salt 

accumulation.

G. White Poly Covered Low Hoop House, Cold Frame or Walk-in Structure with plants consolidated 

container-to-container, standing up or lying down, with thermo blanket (Fleece Fabric, Micro Foam, 

Spun-bound Fabric) completely covering the plants and containers.

H. Structureless Plant Bed with plants laid down and consolidated container-to-container, with thermo 

blanket (Fleece Fabric, Micro Foam, Spun-bound Fabric) plus White Poly completely covering the plants 

and containers.

I. Structureless Plant Bed with plants standing up and mulched with woodchips between containers and 

6”-12” above the containers.

J. White Poly Covered Low Hoop House, Cold Frame or Walk-in Structure with plants consolidated 

container-to-container, standing up or lying down, plus White Poly completely covering the plants and 

containers.

K. Structureless Plant Bed with plants laid down covered with thermo blanket (Fleece Fabric, Micro Foam, 

Spun-bound Fabric) completely covering the plants and containers.

L. White Poly Covered Low Hoop House, Cold Frame or Walk-in Structure with plants consolidated 

container-to-container, standing up or lying down.
February 2024 FCIC-25760 63

Exhibit 10 Operational Cold Protection Requirements (Continued)

M. Structureless Plant Bed with plants laid down with White Poly completely covering plants and 

containers. Care must be taken to avoid foliar damage.

N. Structureless Plant Bed with plants consolidated container-to-container, standing up with the entire 

perimeter of the bed wrapped to the height of the container with a thermo blanket or similar material.

O. Shade Structure with shade fabric or woven translucent fabric and an Irrigation System capable of 

coating the structure with ice to form a “Tent of Ice”

P. Overhead Irrigation System equipped with sufficient sprinklers, water volume and water pressure to 

provide complete coverage of all plants throughout the duration of potential frost damage.

Q. Smudge Pots, Portable Heaters and/or Wind Machines with sufficient capacity to provide protection 

for all plants throughout the duration of potential frost damage.

R. No Protection.
February 2024 FCIC-25760 64

Exhibit 11 FCIC Container Sizes

Container sizes are determined on an actual volume basis for purposes of determining the size of the 

container. The FCIC container sizes and volumes are shown below. Use these standards if there is any 

question about the sizes in the insured’s catalog.

FCIC Size Name

Gallon 

Measurement 

Minimum

Gallon 

Measurement 

Maximum

Cubic Inch 

Equivalent 

Minimum

Cubic Inch 

Equivalent 

Maximum

Includes 

Standard ANSI 

Class

Pot 0.038 0.19 8.78 46.19 SP3

1 Quart 0.20 0.39 46.20 92.39 SP4

2 Quart 0.40 0.59 92.40 138.59 SP5

1 Gallon 0.60 1.37 138.60 318.77 1

2 Gallon 1.38 2.49 318.78 577.49 2

3 Gallon 2.50 3.39 577.50 785.39 3

5 Gallon 3.40 5.77 785.40 1,335.21 5

7 Gallon 5.78 8.49 1,335.18 1,963.49 7

10 Gallon 8.50 11.97 1,963.50 2,767.37 10

15 Gallon 11.98 21.49 2,767.38 4,042.49 15

20 Gallon 21.50 22.49 4,042.50 5,197.49 20

25 Gallon 22.50 29.79 5,197.50 6,883.79 25

30 Gallon 29.80 32.49 6,883.80 7,507.49 N/A

35 Gallon 32.50 37.49 7,507.50 8,662.49 N/A

40 Gallon 37.50 42.49 8,662.50 9,821.49 N/A

45 Gallon 42.50 47.49 9,821.50 10,972.49 N/A

50 Gallon 47.50 52.49 10,972.50 12,127.49 N/A

55 Gallon 52.50 57.49 12,127.50 13,282.49 N/A

60 Gallon 57.50 62.49 13,282.50 14,437.49 N/A

65 Gallon 62.50 67.49 14,437.50 15,592.49 N/A

70 Gallon 67.50 72.49 15,592.50 16,747.49 N/A

75 Gallon 72.50 77.49 16,747.50 21,902.49 N/A

80 Gallon 77.50 82.49 21,902.50 19,057.49 N/A

85 Gallon 82.50 87.49 19,057.50 20,212.49 N/A

90 Gallon 87.50 92.49 20,212.50 21,367.49 N/A

95 Gallon 92.50 97.49 21,367.50 22,522.49 N/A

100 Gallon 97.50 124.49 22,522.50 28,759.49 N/A

150 Gallon 124.50 214.49 28,759.50 40,309.49 N/A

200 Gallon 214.50 224.49 40,309.50 51,859.49 N/A

250 Gallon 224.50 274.49 51,859.50 63,409.49 N/A

300 Gallon 274.50 324.49 63,409.50 74,958.00 N/A