Insurance KTAC Insurance: who's read the fine print?

[falfrenzy]

Just got my policy in the mail and read it. Don't have it in front of me at the moment.

Some important takeaways:

-Modifications to your tractor can exclude you from coverage (page 2, exclusion #2 I think)
-Operation not in accordance to manufacturers recommendations excludes coverage.
-In the event of a loss, you can be required to take the tractor to a location where an "adjustment" (Adjuster inspection) can be made.

There were a couple other troubling ones, but I don't recall them at the moment. I'll look at the policy again this weekend and add to this post/thread.

Curious if anyone has experienced these exclusions the hard way with KTAC?

 

[diesel85]

Interesting thread. I'm going to be watching it, only because in a few years I'll be getting a new machine financed and KTAC is required.

 

[mcfarmall]

What is considered a "modification"? Work lights? Saw Haul? Aftermarket canopy? Tool box? Third function?

I can understand ECM modifications, like a tuner or a chip, emissions or whatever but I can also see an adjuster taking wide liberties with this wording.

 

[wagne223]

Typical insurance wording. They have to set limits somewhere.

If you install a light bar and a toolbox and your tractor is stolen, they wont pay for those items. But you will get reimbursed for the tractor.

If you drilled into a fender or the ROPS to install those and have a rollover into a water filled ditch, they can deny the fender and ROPS but will still pay for the smashed hood and and the water damaged engine.

No different then your car insurance.
Unless you have a rider, they wont pay for your $4k wheels that get stolen.

 

[falfrenzy]

What about Racor fuel filters upgrades, and accessories like lights and gauges that are spliced into factory wiring?

Those are common upgrades if done slightly wrong could damage the tractor.

 

[falfrenzy]

Interesting thread. I'm going to be watching it, only because in a few years I'll be getting a new machine financed and KTAC is required.

I got KTAC on a used Kubota. Was slightly cheaper than a seperate rider/coverafe endorsement to my homeowner's insurance.

 

[falfrenzy]

Have the policy in front of me. Parts that concern me:

Section IV: We do not provide coverage:
....
2. For any Loss resulting from failure to operate the Covered Property in accordance with the manufacturer recommended instructions, use of unapproved parts or alterations, wear and tear, gradual deterioration, inherent vice, latent defect, freezing, mechanical or electrical breakdown, improper or neglected maintenance.
3. For Loss resulting from contaminated, incorrect or inadequate fluids regardless of the cause of loss.
....
Section V. Conditions
1. WHERE AND WHEN THIS POLICY APPLIES
We cover any Loss not included in Section IV, which occurs:
....
C. It is understood and agreed that in the event of Loss, You must transport the Covered Property to a point inside the United States where adjustment can be made.

 

[falfrenzy]

I will say that under Duties in the Event of Loss section, part E reads that KTAC will reimburse for transportation expense to the nearest authorized repair facility, subject to the limits shown on the Declarations Page (in the event of a Covered Loss of course). If you tow your tractor to the adjustment location, and get a denial, guess you're SOL for that transportation expense.

It doesn't state however that reimbursement will occur for transportation to the adjustment location. One could "assume" that the authorized repair facility is where the adjustment would occur, but you know what they say about assumptions.

 

[falfrenzy]

Typical insurance wording. They have to set limits somewhere.

If you install a light bar and a toolbox and your tractor is stolen, they wont pay for those items. But you will get reimbursed for the tractor.

If you drilled into a fender or the ROPS to install those and have a rollover into a water filled ditch, they can deny the fender and ROPS but will still pay for the smashed hood and and the water damaged engine.

No different then your car insurance.
Unless you have a rider, they wont pay for your $4k wheels that get stolen.

I disagree, not similar to your car insurance. Its physical damage coverage only to start with, no BI or PD liability coverage. Secondly, the rims would be covered as personal property unless excluded. I do agree that having a conversation with your agent is prudent if you spend that much on rims.

But this language in KTACs policy is unlike any I've seen in my days of reading thru ISO and carrier specific policies.

 

[Jchonline]

What is considered a "modification"? Work lights? Saw Haul? Aftermarket canopy? Tool box? Third function?

I can understand ECM modifications, like a tuner or a chip, emissions or whatever but I can also see an adjuster taking wide liberties with this wording.

My dealer gave me examples.

1. Installing my own wheel spacers and then rolling the machine or breaking an axle.
2. Drilling holes in the ROPS/FOPS then rolling the tractor and having an injury due to a buckle of said ROPS.

Third function - I can see that voiding a warranty claim on the hydraulic system if you install and they find the cause of the problem was your work.

Most of this has to do with the dealer. The dealer writes up the claim, so they choose what to include and not include. If your engine blows up and you installed wheel spacers on the machine...why would the dealer include the wheel spacers in the discussion?

If they start denying enough claims and word gets out KTAC is no longer the best out there, we will stop buying it.