Insurance Insurance for financed tractor

[hotchkiss]

I do not know if you are in the United States or Canada. If you are not in Canada, someone on this post attempted to give you advise that is not correct in the United States. Here is the issue. The bank wants to and has the right to require you to obtain insurance for the bank's benefit. The bank is loaning you money based upon your agreement to give them a lien against the tractor. The tractor is their only true collateral in this transaction. Sure they could sue you for breach of contract if you default, but the bank and everyone else realizes that there are occassions where you can't collect blood from a turnip or something like that. Thefore, insurance on the tractor is the best option. You homeowners likely only provides insurance for theft or damage occurring while the tractor is stored in an insured structure on your property. Therefore, if you roll the tractor over, it catches on fire while in the field, or is otherwised damaged in a way that significantly lowers the value of the tractor, the bank's collateral is not what it was when you signed the note. I dont' know about the farm bureau suggestion, but would recommend looking into it. Otherwise, you are going to have to have the tractor added as an item that is specifically named and insured on your homeowners policy if you are not a commercial farmer. You will also have to have it insured for more than just theft and damage while in an insured structure. If you live in a small town and are dealing with a small bank, they may work with you and not require a seperate ryder on your policy for the tractor, but those days are passing buy faster and faster. Sorry for the bad news.

 

[schmism]

Can someone give me a name of someone(company) that insures tractors. My bank is requesting me insure my tractor for theft, damages, etc. My homeowners covers liabilty while on my property and while sitting in my barn, but my banker is requesting a seperate policy, and I am not using it commercially, only use is on my property.

id find a new bank. If you get insurance on it (under your homeowners) and then the bank says thats not good enough... what do they want? you asked for insurance, ive got insurance!

CNH wanted to know who mine was insured with when i got my loan on it, I said my homeowners, and called and double checked that it would be covered. As part of my personal property yes it was.

 

[LBrown59]

id find a new bank. If you get insurance on it (under your homeowners) and then the bank says thats not good enough... what do they want? you asked for insurance, ive got insurance!

CNH wanted to know who mine was insured with when i got my loan on it, I said my homeowners, and called and double checked that it would be covered. As part of my personal property yes it was.

It would appear
The Bank is making unreasonable illegal demands in violation of the lending laws or is Big_Lug not fully comprehending & understanding the banks request.

 

[okiekioti]

Farm Bureau will do it if you have a home policy

 

[BJN644]

State Farm said they would cover mine no extra charge on my home owners policy as long as the tractor was being used on my 2 pieces of property. When I asked about it being covered while trailering between my pieces of property they said no coverage. They then wrote me a full coverage policy with a $500 deductible for $165 a year.

 

[LBrown59]

Part of the problem is low recovery rate of stolen tractors...and the fact that there is absolutely no requirement for any documentation trail to operate a tractor off-road

I didn't encounter either problem with insuring any of my 3 tractors.

 

[LBrown59]

When I asked about it being covered while trailering between my pieces of property they said no coverage.

That should be covered by your auto policy.

 

[cperky]

That should be covered by your auto policy.

your auto policy wil not cover the damages to your tractor while in transport!! The auto policy will cover your liability to someone else but any damages to your equipment is repaired on your dime! I have personally checked on this for my own tractor and found that you need an inland marine policy for your tractor. I have mine through a state auto insurance agent cost about $110 a year. An inland marine policy will cover your tractor while in transit and at home or anywhere else. Your home owners policy or auto policy WILL NOT COVER your tractor in transit! I would suggest you check around for an INLAND MARINE POLICY!

 

[hotchkiss]

Before everyone starts offering legal advise, lets try to figure out what country we are talking about.

 

[LBrown59]

1* someone on this post attempted to give you advise that is not correct in the United States. Here is the issue.
2**The bank wants to and has the right to require you to obtain insurance for the bank's benefit.
3*You homeowners likely only provides insurance for theft or damage occurring while the tractor is stored in an insured structure on your property.
4*Therefore, if you roll the tractor over, it catches on fire while in the field, or is otherwised damaged in a way that significantly lowers the value of the tractor, the bank's collateral is not what it was when you signed the note.

1*What advice was incorrect?
2*Right to require yes.
Right to chose insurer no.
3*I think you may be confusing this with contents coverage.