Insurance For Home Use: Compact Tractor?

[Threepoint]

Wouldn't your standard homeowner's liability cover this (but only if you are not charging for the work being done)? That's the way it was explained to me about snowplowing with my truck, but vehicles have their own liability coverage. That's definitely something to verify with your insurance company. In fact, I'm going to call my agent today and double check this! Thanks for pointing this out!

I have all of my equipment covered by the "personal articles" policies.

It is really important to check with your particular carrier on this to at least understand the risks. Standard homeowner's liability coverage does not extend to use of a tractor, ATV or UTV off your property, regardless of whether you're being compensated for it. Nor is such coverage typically even available as a rider to your homeowner's policy. So, plowing snow with your CUT at your neighbors would typically not be covered, either for damage to the tractor or liability to third parties for property damage or personal injury. By contrast, plowing with your truck as a favor to your neighbors would usually be covered under your auto insurance policy. If you are accepting compensation, the truck should always be listed as business use, which will add a bit to the insurance premium.

I suspect a lot of TBNrs do tractor chores as favors to their neighbors, friends and family, not fully knowing the risks if something were to happen.

 

[TractorGuy]

My Farm Bureau agent said my tractors are not covered but my lawn mower would be. I have a regular home owners policy with a country squire add on. I didn't bother to ask if there was an option to insure the tractors through them. She could have been wrong. I need to read the new policy I just downloaded.

 

[Kubota 2350]

The insurance laws are different in every state, you need to check with the insurance company that your insured with to be sure.

 

[strantor]

I added the tractor to my homeowners policy and it only covers damage to the tractor while it's on my property, and only for fire/theft/acts of God just like the house. My policy is through Farmers Insurance. My agent told me there was another policy available that would cover everything the current policy covers, plus the tractor would be covered anywhere for anything, and it would be like $400/yr less than I'm already paying. I think it would have two separate policies actually, not sure. I didn't go through with it because they would have to send an inspector out to check the house same as when I bought it. I have some things I need to fix before a trained eye starts poking around. Don't want to lose my insurance in an effort to save a bit of money so I just added the tractor to my current policy for like $10/mo more.

As far as liability goes, off my property (helping a neighbor for a nickel or somesuch) I should be covered by my GL policy I have for my business (that's $1,500/yr for $2M) but it wouldn't cover damage to the tractor. And if I happen to have an accident while transporting it then my auto policy should cover it.

 

[HillStreet]

You would need to check with your insurance company but after speaking with the underwiters at mine I learned they modified the wording a few years ago so you would have coverage on "adjacent properties" for all perils covered on your homeowners policy like fire, theft, vandalism, tree falling on it, lightning, etc.

The problem with the homeowner's policy route is that it doesn't cover damage to the tractor from the use of it, like if you roll it over. If you crash it into your house and the house were to fall on it, the house would be covered for damage but the tractor wouldn't be. Bottom line, be careful if you're relying on your homeowners policy and understand what is and isn't covered.

I called around to several companies about inland marine policies but the best I found was a "personal articles" policy through State Farm. I could insure the full value of the tractor (roughly $40k) with a ZERO deductible for just under $500/yr. With a $500 deductible it dropped to about $375/yr. The personal articles policy is similar to "scheduling" items on a homeowners policy. You can put just about anything you want on the policy....jewelery, coin collections, guns, artwork....you name it and they will probably insure it. I plan on adding a couple of my more expensive implements to the policy when I get them too, a snowblower and a grapple. A very flexible type of policy.

This policy doesn't have a liability component though so even though you could take the tractor off your property, if you hurt your neighbor by running over his foot you might still have a gap in coverage. With Inland Marine you can add the liability coverage as well which is what I would need to cover operation on the road if I ever decided I needed to do that.

That is a good explanation. I would not operate my machine without Kubota coverage. Branches can poke through anywhere and ruin filters/drain fluids, break radiators and such.

 

[TractorNH]

And if I happen to have an accident while transporting it then my auto policy should cover it.

Generally not a correct assumption. Most auto policies do not cover cargo for damage and hauling the tractor makes it cargo. If a dealer is hauling it for service it would be covered under their general liability insurance if damage occured while in their possession. Most people don't realize their auto policy also doesn't cover damage to their trailer unless they've specifically insured it.

 

[herm0016]

I don't know about insuring the actual machine, but for liability I recommend having at least a 1 million dollar umbrella policy. this will protect you personally and your properties in case of any liability claim. my policy covers up to 4 properties and any liability suite brought against us, it only costs a few hundred dollars per year.

 

[TheFarmerInAdell]

Most auto policies do not cover cargo for damage and hauling the tractor makes it cargo. ... Most people don't realize their auto policy also doesn't cover damage to their trailer unless they've specifically insured it.

This is correct. I even have my trailers insured, because gooseneck trailers are expensive to replace. If you are hauling your tractor, and it falls off onto someone else's vehicle you are covered for liability while hauling it. Same goes for your trailer if it comes disconnected and runs into something. However if you crash and everything (truck, trailer, tractor) are a loss then they will only replace the truck. The other items need their own coverage. This is exactly what my insurance agent told me.

 

[thekkfan]

This is correct. I even have my trailers insured, because gooseneck trailers are expensive to replace. If you are hauling your tractor, and it falls off onto someone else's vehicle you are covered for liability while hauling it. Same goes for your trailer if it comes disconnected and runs into something. However if you crash and everything (truck, trailer, tractor) are a loss then they will only replace the truck. The other items need their own coverage. This is exactly what my insurance agent told me.

Ditto, you need inland marine once again to cover during transport.

 

[JLB1008]

I am an Insurance Agency Owner, and former 25 year claims adjuster. I am in NC, but most home policies are the same. The home policy excludes anything with a traditional motor,---now follow me here. But later in the policy it gives that coverage back to you if it is used SOLEY for the upkeep of your property... so ask long as your tractor is used on your property it is covered by your home policy under the Personal Property section.... NOW the moment you leave your property to scrape your neighbors driveway.. you lose that coverage while the tractor is NOT on your property.. IF you want additional coverage to cover your tractor while it is away from your property, asjk your agent for an Inland Marine policy and schedule your tractor-- list it and your attachment, with there values