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.

 

[HillStreet]

Two years ago I got a phone call from a KTAC rep asking if I wanted to renew my coverage. I said no, because I had just paid off the machine, and it stays on my property. She started telling me all the things it covered, (such as a branch pushing against the filter and spilling oil) and I said “well, I have a claim right now”, and she said to pursue it.

I submitted the claim, KTAC sent it to the dealership, the dealership picked up my tractor to verify the damage (the dealership is the claims authority), the dealership repaired the tractor ($2300) and it is as good as new. I will be a KTAC customer, for about $250 a year, for as long as I have a tractor. There is NO COMPASRISON with homeowners insurance, it is a completely different product.

 

[RickB]

R

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.

Exactly.

 

[falfrenzy]

Two years ago I got a phone call from a KTAC rep asking if I wanted to renew my coverage. I said no, because I had just paid off the machine, and it stays on my property. She started telling me all the things it covered, (such as a branch pushing against the filter and spilling oil) and I said “well, I have a claim right now”, and she said to pursue it.

I submitted the claim, KTAC sent it to the dealership, the dealership picked up my tractor to verify the damage (the dealership is the claims authority), the dealership repaired the tractor ($2300) and it is as good as new. I will be a KTAC customer, for about $250 a year, for as long as I have a tractor. There is NO COMPASRISON with homeowners insurance, it is a completely different product.

So what was the nature of your damage/claim?

 

[crazyal]

Most people who get KTAC do so because they got a loan through Kubota on a new tractor. KTAC seams to be good coverage but it's not cheap. The quote I got was for about $300/ a year (I could be off). But I had my first (self inflicted) fail. It cost me a little under $900 to repair. I've had my tractor now for almost 9 years so KTAC wouldn't of paid for $650 (it would have been more because a dealer would of done the work and charged labor) of what it cost me, or a little more than 2 years worth of payments. Most people own their tractors for decades with no issues. The premiums add up. On the other hand there's that one unlucky person who has a major system failure or a tree falling and breaking his tractor into multiple parts. For them it pays off very well. As for the terms, I don't see it as nothing too unusual.

 

[Code54]

They have to have that language in the policy because someone somewhere will take the cylinder off a D9 dozer and try to shoe horn it to there BX loader and destroy it then file a claim. It is rare you ever hear of anyone complaining about KTAC. Mostly hear people saying how pleased they have been when they had to file a claim.

 

[JK22]

Most people own their tractors for decades with no issues. The premiums add up. On the other hand there's that one unlucky person who has a major system failure or a tree falling and breaking his tractor into multiple parts. For them it pays off very well.

You basically just described how insurance works... If this wasn’t the case, insurance companies would be out of business.

 

[Tractor Seabee]

They took care of a $8.5K claim on my BX. No sweat, smooth transaction. If all you do is mow and light ground work on the flat is is probably not a good investment.

Ron

 

[4570Man]

Most people who get KTAC do so because they got a loan through Kubota on a new tractor. KTAC seams to be good coverage but it's not cheap. The quote I got was for about $300/ a year (I could be off). But I had my first (self inflicted) fail. It cost me a little under $900 to repair. I've had my tractor now for almost 9 years so KTAC wouldn't of paid for $650 (it would have been more because a dealer would of done the work and charged labor) of what it cost me, or a little more than 2 years worth of payments. Most people own their tractors for decades with no issues. The premiums add up. On the other hand there's that one unlucky person who has a major system failure or a tree falling and breaking his tractor into multiple parts. For them it pays off very well. As for the terms, I don't see it as nothing too unusual.

My homeowners insurance covers a machine as long as I own it and it’s parked on the property when damage occurs and it pretty much only covers theft or fire. I ended up paying $15 per thousand of value for a stand alone policy because the only on the property deal wasn’t going to cut it. That probably makes Ktac a better deal. I should probably check into it next year and see if they’ll insure a JD. My math came to the insurance policy equaling about 60 years of not getting stolen. That math was failing to account for lowering the paid amount because the value is less over the 60 years. My machine often sleeps on the job site so I didn’t figure 60 years of not getting stolen was in my favor.

 

[HillStreet]

So what was the nature of your damage/claim?

Falfrenzy: The B2650 tractor had just 300 hours on it. I was using it to rework an apple orchard that had been idle for 15 years. I used two saws to prune (radically prune) the trees, and used the bucket to move the tops away from the trees and pile up to burn.

I was very careful but nonetheless did damage by small branches getting under the tractor and breaking stuff. I damaged the hood, front grille, front metal bumper, radiator shroud. A lot of this stuff is plastic and it cracked, the metal got dinged. It worked fine, and I was going to make the repairs myself but the phone call from KTAC was just a coincidence.

Just so you know, the tractor is in pristine condition and runs like it is new. I got focused on the tasks and thought extra care would be good enough. It wasn’t. I should have gotten a grapple but it was a one time job. It is a working tractor, but I wont treat it like that again.

 

[vvanders]

My homeowners insurance covers a machine as long as I own it and it痴 parked on the property when damage occurs and it pretty much only covers theft or fire. I ended up paying $15 per thousand of value for a stand alone policy because the only on the property deal wasn稚 going to cut it. That probably makes Ktac a better deal. I should probably check into it next year and see if they値l insure a JD. My math came to the insurance policy equaling about 60 years of not getting stolen. That math was failing to account for lowering the paid amount because the value is less over the 60 years. My machine often sleeps on the job site so I didn稚 figure 60 years of not getting stolen was in my favor.

Be careful with homeowners insurance. I've heard a few stories of people making more than one small($1-2k) claim and getting dropped. Since most of the companies share information the one drop turns into not being able to get coverage which can get you into some serious problems if you have a mortgage.