Insurance Loan Insurance ?

[mffarmall]

I have a loan on my tractor for 8,ooo by Wells Fargo Financial. I also have it covered under my home owners ins.

Problem: Wells wants a certificate saying the are lose payee and my insurance only gives a blanket policy. In simple words, they won't say Wells fargo gets the money, Wells would need to get it from me.

So I am forced to take $27.00 a month extra on my loan to cover insurance. I have called around with no luck.

My ?
Does anyone know of a company that will cover the tractor or loan from lose in Colorado for under $27.00 a month or a flat rate of under 100.00 for the year? I only use it to clean up my property so I don't need commercial or crop ins.

 

[LBrown59]

I have a loan on my tractor for 8,ooo by Wells Fargo Financial. I also have it covered under my home owners ins.

Problem: Wells wants a certificate saying the are lose payee and my insurance only gives a blanket policy. In simple words, they won't say Wells fargo gets the money, Wells would need to get it from me.

So I am forced to take $27.00 a month extra on my loan to cover insurance. I have called around with no luck.

My ?
Does anyone know of a company that will cover the tractor or loan from lose in Colorado for under $27.00 a month or a flat rate of under 100.00 for the year? I only use it to clean up my property so I don't need commercial or crop ins.

I never heard of an insurance co that won't do that.
maybe you need to change insurers.

 

[Woodland]

Or pick another bank?

 

[Dargo]

Lenders definitely can require insurance and require that they be the first loss payee. They can even require life and/or disability insurance on the loan. They just cannot require you to get the insurance through them. My guess is the tractor in question isn't one from what is considered a major brand. Lenders are scared now and are doing things they didn't before. You should be able to call your ins co and get a specific rider covering your tractor for the dollar amount of your loan for not much money. WF will accept that.

One of my old college buddies has had his own agency for years. Like many agents now, he also can arrange loans for his customers. He told me that most of his lending sources will now not loan money on what they consider an "off brand" tractor unless the customer has over half down and a spotless credit history. I think that practice may put some of the "off brand" companies under in today's economy.

 

[LBrown59]

Or pick another bank?

That probably wouldn't help here since it is the insurer at fault not the bank.

 

[SnowRidge]

Does your contract provide for a loss payee clause? If not, I would tell them to stick it. If they just require insurance, mail them a copy of your HO insurance, and tell that that's all they get. If they start dinging you for insurance without a clause in the contract or your explicit permission, file a complaint with your state insurance commissioner.

BTW, I would not expect an insurance company to provide loss payee papers on stuff covered under a blanket homeowners policy. If the item were listed and there was an extra premium for coverage, that's a different matter.

 

[Dargo]

Does your contract provide for a loss payee clause? If not, I would tell them to stick it. If they just require insurance, mail them a copy of your HO insurance, and tell that that's all they get. If they start dinging you for insurance without a clause in the contract or your explicit permission, file a complaint with your state insurance commissioner.

Unless I'm mistaken, I believe the original poster is talking about his loan on his tractor. If that is the case, Wells Fargo will definitely have explicitly worded clauses that require the debtor to purchase and maintain full coverage insurance for the collateral, in this case the tractor, throughout the course of the loan and have Wells Fargo clearly designated as the first loss payee.

If that is the case, and I'm reading it as a loan for his tractor, they have the option to call the loan as well as force place insurance coverage. Being that Wells Fargo isn't exactly very stable, if they think they can recover the principle, they very well could simply call the loan and demand immediate payment in full. If full payment is not made immediately, they will repo the tractor. The verbiage in loan contracts is very specific and very strict. In the past loan companies have been relatively lax in how hard they push their requirements. That is no longer the case.

 

[LBrown59]

1*Lenders definitely can require insurance and require that they be the first loss payee. They can even require life and/or disability insurance on the loan. They just cannot require you to get the insurance through them.
2*My guess is the tractor in question isn't one from what is considered a major brand.
3*Lenders are scared now and are doing things they didn't before.
4* You should be able to call your ins co and get a specific rider covering your tractor for the dollar amount of your loan for not much money.
5*WF will accept that.
6*One of my old college buddies told me that most of his lending sources will now not loan money on what they consider an "off brand" tractor unless the customer has over half down and a spotless credit history. .

1*The lender ain't the snag in this case.
The insurer is the one out of bounds.
2* This has nothing to do with a loss payee clause in an insurance policy .
3*The lender hain't the do e here it's the insurer who's not doing it rite.
4*mffarmall already has that - ie - coverage on his tractor.
5*Nope they won't not if they aren't listed as the loss payee in the policy.
6*Obtaining the loan is not the OPs problem, he already has it.
The only party in error here is the insurance company.
I don't see how any insurer with a rule like mffarmalls insurer has could stay in business very long.

 

[redneckford]

Had a customer that thought his home owners insurance covered his tractor---when down the road to pull someone out of the ditch(Canal) you guessed it the tractor fell in the canal also---Insurance would not pay a dime because the unit was off his property?? Fought it in court and the insurance company won they always win@@@ He had paid cash for the tractor.

 

[Dargo]

Had a customer that thought his home owners insurance covered his tractor---when down the road to pull someone out of the ditch(Canal) you guessed it the tractor fell in the canal also---Insurance would not pay a dime because the unit was off his property?? Fought it in court and the insurance company won they always win@@@ He had paid cash for the tractor.

That's what I attempted to point out in basic legal terms. I'm sorry that LBrown59 completely missed that part. That's why I suggested that he get a specific rider for his tractor (sorry LB, but I thought it was clear to everyone why I suggested that - to list Wells Fargo as the loss payee) to satisfy his lender's requirements. Lenders know that some non-listed large assets, like a tractor, may not be specifically covered. That is why they require a specific document showing coverage and them listed as the loss payee.