Insurance Insurance needed to finance through Kubota?

[Henro]

<font color="blue"> My agent told me my tractors are covered as long as they are used <font color="red"> exclusively </font> for maintenance of the property ON THE PROPERTY.
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I just realized that I forgot an important word when I made that comment above. State Farm did change the wording in their policies to eliminate coverage on ATVs, whose owners were using them some of the time for maintenance at home, and most of the time for fun in the woods...

My agent also at the time told me that he had just went through a replacement of a "large tractor" that one of his clients lost in a shed/barn fire of some kind. This was a doctor who like many of us caught the tractor bug...tractor was in a residential location, not on a farm...

That was two years ago...perhaps things have changed...

 

[bigfrog]

I just purchased a Kubota L4400 in Missouri and wanted to take advantage of the 0% money too. I was told by my dealer that proof of insurance would be required. I am insured with State Farm, and so called them to see if they could provide. The tractor is not kept at my primary residence, but at a farm that I own and I explained that to my insurance agent. The insurance agent indicated that as long as I wasn't using the tractor "for hire" work that the homeowners policy was still adequate even though the tractor was not being used at my residence. They asked for the price of the tractor and attachments, and increased the contents on my homeowners policy and listed Kubota as an additional "loss payee?" Maybe I have the exact terminology wrong. Anyway, it raised the premium on my homeowners insurance about $9 per year for a $25,000+ increase in coverage. Kubota Credit was happy and so was I.

 

[seapea]

I called my State Farm agent back, and after making many of the points mentioned here and asking a bunch of "hypotheticals" (and after he talked to an underwriter more than once), I got some more concrete info about tractor coverage:
<ul type="square">[*]My homeonwers does cover the tractor while on my property, although only for specifically "named perils". Not sure what they all are yet, but it does include theft and fire (probably the only two things that would result in a total loss).
[*]My auto insurance will cover the tractor when in transit on either my vehicle or one I rent.
[*]Neither homeowners nor auto insurance would cover a 3rd party transporting my tractor (such as the dealer).
[*]My homeowners would not cover the tractor when used off my property.
[*]For $660 a year personal articles policy, I can cover $24,000 worth of tractor and equipment off my property, and also get better coverage when on the property (ie. not just for the "named perils").[/list]
$660 is an aweful lot just to let my neighbors borrow it once in a while, or to volunteer for some tractoring at my kids' school. However, my main concern is theft, so as long as I'm with the tractor at all times when off my property, I probably won't need to have much concern about an uncovered loss. I think the main risk for an uncovered loss would be something like an engine fire, which would not be covered, although if the house burned down on top of the tractor it would be. I wonder what would happen if an engine fire cause the house to burn down?

 

[bowhunter3030]

I made my second payment on the 0% plan today. Ford has a money market account that pays around 3.65%, unlimited free checks. It all adds up. I do have full coverage on my 3030, but, to date, no one from Kubota credit has ask me for proof.

 

[Dargo]

Now you have me wondering. /forums/images/graemlins/confused.gif I specifically called my State Farm agent (homeowners) and inquired about my RTV and Rhino. My main concern was theft or fire loss. He assured me that they would be covered, as would be my tractor.

However, I neglected to inquire about any coverage in case of an accident while trailering them between the property where I live and additional property I own. Since some of you guys know that my L5030HSTC nearly left my trailer earlier this spring on the trip, I should have taken the hint then and asked specifically about such coverage. Thanks for the reminder. Also, I'm wondering if I have proper coverage for the items in my barn. Just a partial list would include my L5030HSTC, about a dozen implements for it, 2 commercial front mount Grasshopper mowers, a Kubota RTV, a Yamaha Rhino, a Clark forklift etc. etc. I'm doing some adding here on the value of those items along with several other rather expensive things like a diesel generator and such, and I'm wondering if I'm properly covered. /forums/images/graemlins/confused.gif

Also, I don't know about Kubota fincance, but JD finance apparently is a real stickler on items being insured. A couple of years ago when I bought a new JD 4600, it took nearly 2 months to get JD credit to quit calling me about insurance. Nevermind that I did specifically add the tractor to my homeowner's policy, but I've never fincanced a tractor. /forums/images/graemlins/shocked.gif I fail to see why they would be concerned if I have it insured or not. /forums/images/graemlins/tongue.gif

 

[bowhunter3030]

I used to have SF. Went to Country Companies. Better coverage for less on my Harley, Grizzly, Banshee, 1200 & 1100 waverunners, B3030 & attachments, JD216, vehicles, house, and my two trailers. I have full coverage on all so "no surprises" after the fact.

 

[8561]

Seapea - I'm sorry I didn't respond to you last night, I must have missed the thread when I checked the site. The reason I always take the large nationals out when discussing general insurance stuff is that they script their own policies. In general, they are very, very similar to a standard ISO policy, but there are differences, sometimes a few key words that will dramatically change coverage (I'll leave it to you to speculate in whose favor). I haven't adjusted a State Farm loss in 6 or 7 years so I would guess their policy has probably changed since then. For that reason, I really wouldn't be comfortable trying to offer you an opinion. It looks like other SF policyholders have done some legwork and I would defer to their answers. Sorry I couldn't be more help.

 

[MadReferee]

</font><font color="blue" class="small">( For $660 a year personal articles policy, I can cover $24,000 worth of tractor and equipment off my property, and also get better coverage when on the property (ie. not just for the "named perils.)</font>

That is a little high.

Have your agent look into a Commercial Inland Marine policy. This type of coverage is relatively inexpensive and will cover your tractor, implements and many other things both on and off your property. It's cost, for me anyway, is $15 per $1000 of coverage. For others it has cost less.

Do a search here on TBN for "Inland Marine" and you will get a wealth of info on that type of policy.

 

[BRIGUY]

Hi Guys,

I was reading some if this post to my wife. She Is the office manager for a State Farm agent (for 21 years). She said Rules laws and pricing very so much from state to state, and sometimes prices very greatly depending on the county. She suggested Talking in depth to your agent and or calling the home office if you don't think the agent is on the ball.

My wife handles very few tractor questions so she usually has to call underwriting herself.

I recently posted in the safety section about a gentleman that my wife insured who died using his new tractor. The Agent said the damaged and financed tractor that the widow is stuck with was not covered. After making a few calls, come to find out it was covered. I'm sure that will make a big difference to the family. now maybe they can get something out of the tractor instead of owing more on a damaged tractor than it was worth. At least now it can be repaired and sold for a fair price.

 

[BRIGUY]

Update,

Wife came home from lunch and State Farm is not covering the Tractor. Today they stated That if it had been in an accident with a car on there property it would have been covered. What BS, Wife is pissed, There dealer is pissed, and the Widow will have insult added to injury.

Be careful and have your coverage spelled out for you.

I bet the finance company that required the insurance was under the impression that their interests were protected.

What a bad situation.