Tractor insurance?

[Case485Guy]

Co-worker assumes note for a JJ6603,cab,FEL, round baler and a couple more implements from his uncle. Co-worker starts bailing hay to sell.On his second weekend bailer catches fire and both tractor and bailer are total loss. Anyone have info on how the insurance works in this scenario? He was talking to me about it today but I have no idea. My tractor/equipment is older and paid for.
Everything financed through JD credit.

 

[grsthegreat]

Im not sure if the fact that it has finance so it might be insured thru that.

Otherwise i have never heard of a tractor being covered under farm insurance unless it has an individual rider. I just went thru this myself on my new tractor. I have a farm policy and an umbrella cover, yet my tractor wasn't covered. I had to get an additional rider for the tractor. Mind you it only cost $155.00 for $45,000 worth of coverage. Full replacement less $500 deductible.

My State Farm policy ONLY covered SOMEONE getting hurt by the tractor...not the tractor itself UNLESS i had a rider. My agent told me that as far as he knew all policies are written that way. Its the same if you have a large jewelery, painting, gun, camera collection or whatever.

 

[Jamming]

Homeowners insurance here would cover this, but some states are different.
First thing I did was call my insurance company when I bought my tractor.

 

[JD 4520]

Co-worker assumes note for a JJ6603,cab,FEL, round baler and a couple more implements from his uncle. Co-worker starts bailing hay to sell.On his second weekend bailer catches fire and both tractor and bailer are total loss. Anyone have info on how the insurance works in this scenario? He was talking to me about it today but I have no idea. My tractor/equipment is older and paid for.
Everything financed through JD credit.

There has been a fair amount written on this topic on TBN so do a quick search, but if I read correctly, if JD credit is carrying the note then you can be most assured that it is also covered through JD insurance, that is almost a given.

Separately, homeowners insurance generally would not cover a loss like this in this scenario as it is being used in a trade or business which would call for separate coverage as such.

You should always deal with insurance first when dealing with a business and assets. I think you will be fine though given the coverage through JD. Having said that, it is possible to only cover the balance due on the note and not additional value should there have been more value than the outstanding balance.

Wish you well.

 

[grsthegreat]

Homeowners insurance here would cover this, but some states are different.
First thing I did was call my insurance company when I bought my tractor.

i hope your correct....i checked with 3 separate carriers (farmers, state farm and progressive) and all 3 stated that a tractor is NOT covered under homeowners insurance for replacement..only any damage that the tractor causes. in other words there is a liabiality coverage but not a comp/damage/replacement coverage. If the tractor smashes into my shop wall, the ins will repair shop ONLY. If a tree breaks off and destroys cab.....the operator is covered... not the tractor. the rider i got covered the tractor....PLUS it gave me coverage off of my property for snow plowing of roads.

 

[Case485Guy]

JD credit is carrying the note then you can be most assured that it is also covered through JD insurance, that is almost a given.

Separately, homeowners insurance generally would not cover a loss like this in this scenario as it is being used in a trade or business which would call for separate coverage as such.

I think you will be fine though given the coverage through JD. Having said that, it is possible to only cover the balance due on the note and not additional value should there have been more value than the outstanding balance.

Wish you well.

Thats pretty much what I told him. I am just guessing though. I told him the baling for hire could get him.

 

[Smallplot]

To get the insurance through JD they usually require insurance just like a local bank. Insurance is cheap for a tractor here on our farm policy and each piece of equipment is also listed. He may need to add the custom farming rider since baling hay for other individuals.

 

[Mudfarmer]

Thats pretty much what I told him. I am just guessing though. I told him the baling for hire could get him.

I suspect that JD insurance only covers JD's exposure to loss, not the whole tractor. I bought my 3005 with five year financing, the entire insurance bill was about $150. Since I now own about 50% of the tractor's equity, I suspect if I trash it, JD will get it's loan paid off, and that's all.
Mf

 

[JD 4520]

I suspect that JD insurance only covers JD's exposure to loss, not the whole tractor. I bought my 3005 with five year financing, the entire insurance bill was about $150. Since I now own about 50% of the tractor's equity, I suspect if I trash it, JD will get it's loan paid off, and that's all.
Mf

You are most likely 100% correct so consider the JD insurance to be loan insurance. Now that you have equity at risk I would get a separate policy either through your own carrier or JD so that you have the proper protection that you need.

 

[lost in wisconsin]

There has been a fair amount written on this topic on TBN so do a quick search, but if I read correctly, if JD credit is carrying the note then you can be most assured that it is also covered through JD insurance, that is almost a given.

Separately, homeowners insurance generally would not cover a loss like this in this scenario as it is being used in a trade or business which would call for separate coverage as such.

You should always deal with insurance first when dealing with a business and assets. I think you will be fine though given the coverage through JD. Having said that, it is possible to only cover the balance due on the note and not additional value should there have been more value than the outstanding balance.

Wish you well.

I agree with JD 4520's comment about inquiring with insurance prior. Seems there are a lot of individuals assuming they are covered only to find out too late, they are not.

Here is the list of questions I asked of our insurance agent prior to our tractor being delivered:

* Is it covered under the existing home owner's龍 policy?
* If so, does that include theft from our property, damage on our property and liability on and off our property?
* Is the coverage for replacement value?
* The purpose of the tractor is to help around our acreage. We would not be doing any commercial business (i.e. lawn mowing or snowplowing) with it but on occasion we may help a neighbor or family member with a task that requires a front end loader.
* Would it be covered in transit to the other party regardless whether we drove it there or placed it on a trailer?
* Would it be covered if it were damaged at their property?


And her response...
The tractor is covered under your personal property on your homeowner's policy. It is covered for theft, damage such as hail, wind, fire. It is covered for replacement value since you have replacement coverage on your policy. You are covered for liability on your property
but not away from your property. It would be covered in transit if something happens to it due to a covered loss. Lets say you were in an accident and the tractor was damaged, you would have coverage for that. If it is a mechanical or maintenance issue, there would not be coverage. You have some coverage for personal property away from the residence, but it has to be for a loss that is covered under the policy. Liability would not be covered at another property.


I hope this helps