Insurance Insurance needed to finance through Kubota?

Henro · May 19, 2005

My agent told me my tractors are covered as long as they are used exclusively for maintenance of the property ON THE PROPERTY.


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 · May 19, 2005

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 · May 19, 2005

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 · May 19, 2005

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 · May 19, 2005

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 · May 19, 2005

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 · May 19, 2005

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 · May 20, 2005

( 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.)

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 · May 20, 2005

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 · May 20, 2005

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.

seapea · May 20, 2005

( (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.))

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.
)

I just checked with my agent again, and the $660 is for an Inland Marine polcy. He said it's $27.50 per $1000. The really frustrating thing is that I don't get a discount even though I have homeowners that will cover most tractor claims, plus an umbrella liability policy. $660 is also what the policy would cost me if I didn't do any business with State Farm and didn't have any other insurance that covered the tractor.

I should also clarify one thing I said early. I said the tractor was covered under my auto insurance when being transported. It turns out to only be covered for liability, but not for any loss. But then I started asking questions like: what if I'm transporting a piece of furniture to a storage unit. Isn't that covered? He thought it was, but then could not tell me why it would be covered and my tractor would not. He'll be doing some more research.

willywildes · May 20, 2005

I have the o% financing. dealer asked if i wanted the Kubota insurance. I said no. signed the form declining insurance from Kubota. and was on my way. Allstate say it's covered but Kubota never asked.

BX23Seattle · May 20, 2005

My homeowners provides coverage while on my property for things like fire, theft, vandalism.

My auto insurance provides free "liability" coverage for towing trailers behind my truck. If my tractor falls off while trailering it and hits the car behind, I am protected from the liablility aspect regarding damages to the injured party behind me but I am on my own for fixing my busted up Kubota. No collison coverage for my trailer or anything that I have on it.

My homeowners covers my personal property (including my Kubota) anywhere in the world but is limited to the same perils as if the loss took place at my home (fire, theft, vandalism) No collision coverage on my homeowners policy which is standard in the industry as far as I know.

If you use your tractor for any "business purpose" and don't have other ins. you really better read your policy. My homowners limits coverage for personal property to $500 while away from my residence premise. And I only have $5,000 in coverage while on my residence premise for any property used in any manor for any business purpose.

This is an HO-9 policy with broader coverage than the standard HO-3 policy form.

MadReferee · May 20, 2005

( I just checked with my agent again, and the $660 is for an Inland Marine polcy. He said it's $27.50 per $1000. )

Boy that's high. I have been told my rate was high but that is outrageous.

However the Inland Marine policy is the way to go if you ever take your tractor off property. It doesn't cover liability but does cover just about everything else including fuel spill cleanups.

Where are you located? Have you tried other agents with other companies?

seapea · May 20, 2005

( Boy that's high. I have been told my rate was high but that is outrageous.

However the Inland Marine policy is the way to go if you ever take your tractor off property. It doesn't cover liability but does cover just about everything else including fuel spill cleanups.

Where are you located? Have you tried other agents with other companies?
)

I live in the SF Bay area. Although an expensive area to live, I've never noticed insurance rates to be much higher. In fact, when I first moved out here from Michigan my car insurance rate went down. I'll be checking other insurance options.

seapea · May 22, 2005

My State Farm agent sent me a new copy of my homeowners policy, so I read through it and the auto policy. Here's what my homeowners policy says:

Section I - Coverage B - Personal Property - (1) Property Covered: We cover personal property anywhere in the world.

The only possibly relevant limitation I could find was 10% of my total coverage, which won't be an issue in my case.

Section I - Coverage B - Personal Property - (2) Property Not Covered: We do not cover ... (c) any engine or motor propelled vehicle or machine, including the parts, designed for movement on land. We do cover those not licensed for use on public highways which are: (1) used solely to service the insured location...

This is both good or bad. It looks like my tractor is insured wherever it is, so for example, it would be covered for theft while at the dealership for repairs. It's even covered at my neighbors house, presuming I never use it there. /forums/images/graemlins/frown.gif In fact, it looks like if I ever use it off the property, it is forever not covered, even when on my property. I saw a previous post that also brought this up.

Of course all of the above coverage is just for theft and some commonly "named perils". Driving into a pond or otherwise doing damage would not be covered without an "inland marine" policy..

Now I have to ask, what about attachments? It seems the attachments would be covered, even if used off the property, since they are not a "motor propelled vehicle or machine". For this reason, I probably only need an "inland marine" policy for the tractor itself, and not the attachments, which will save me about half.

As for coverage during transport, it looks like my auto insurance only covers liability (ie. tractor falls off and damages something). It does cover the trailer itself, but the only mention of contents said that clothes and luggage are covered.

Henro · May 22, 2005

In fact, it looks like if I ever use it off the property, it is forever not covered, even when on my property. I saw a previous post that also brought this up. 

I've heard this comment before and would like to hear more discussion on it.

Somehow I have difficulty believing that there would be no way to reset the clock.

For example, what if I used my tractor off my property, sold it to someone, then bought it back? Would I be excluded form having coverage because the first time I owned it I used it off the property?

Somehow it is hard for me to believe that if my tractor was stolen off my property, that coverage would be denied because I happened to use it years before to clean up one of my trees that fell onto the neighbor's property...

Then again I not naive (did I spell that right?) enough to think this would NOT be the case in TODAY'S world... /forums/images/graemlins/frown.gif

Would writing a check for the next year of coverage reset the clock?

Anyone? What I am most interested in is the theft insurance. I can take responsibility for accidental damage...

8561 · May 22, 2005

Henro - here is your answer:
http://www.faia.com/scriptcontent/fa_custom/education/edlibrary/mowers.cfm

Forget the fact this is the Florida Agents Association web-site. This article is a re-print of the national agent's website and I have seen the man who wrote it speak. This is the current correct interpretation.

Given what has been previously posted about the most recent version of the State Farm homeowner's policy, it appears they have adopted similar language with the same meaning. I agree it is hard to believe and defies some form of common sense, but it's a fact.

RobTky · May 23, 2005

Are you realy insured? I had State Farm until three days ago, they don't pay. If you plan to work the tractor you will need more than home owners insurance. I came within a breath of not taking the JD insurance, because mu agent told me that I was fully covered. Then something told me to go with the JD insurance too. If I had not of taken the JD insurance I would be out $25,000.00. /forums/images/graemlins/frown.gif