Insurance question

Henro · Jul 25, 2003

IMCA38,

Some very interesting observations.

In my case, I think my agent was trying his best to inform me of what he thought was the case with respect to the collision part.

I did not think to ask him about a car, for example. If I roll my car and do not hit anything, I am about certain that my collision coverage will still pay for the repairs...

Thanks for taking the time to post you thoughts. Very meaningful to me, and to most of us probably.

Briarwood · Jul 28, 2003

My homeowners policy provides for off-premises personal property coverage at up to 10% of the policy personal property limit. Therefore, if I have contents coverage of $100,000, then I have $10,000 coverage on my tractor when off my property (as long as not used for business). Also, my policy is "all risk" coverage for personal property. Check for the all risk feature and increase your contents coverage to give you the coverage amount you need at 10%. Also, it is full replacement cost. Not only verified this with my agent but had him verify it with the homeowners claim department head.

BTW, when your agent tells you your tractor is covered that doesn't mean for everything. You need to get clarification because there are different kinds of coverage. If he makes specific statements about coverage and you can't find verification in the policy, ask him to give you a letter or written memo to back up his statements. Then, the agent's E&O policy will cover you when the insurance company says your policy doesn't.

FWIW
Briarwood

Kelvin · Jul 28, 2003

( The other important part that my Allstate agent let me know is that during trailering, your vehicle insurance will cover any damage that might occur to another vehicle, property etc, but would not cover the cost to fix/repair etc your machine!!! )

My Farm Bureau insurance made basically the same statement. My tractor basically has better coverage when I leave it at my property 5 miles away (no barn or other protection) than it does when I trailer it back and forth. When being transported, it (and all the other stuff on the trailer) only has liability insurance regardless of the insurance coverage of the tow vehicle.

I still transport it back and forth. I am finally talking to a builder so I may break ground on my house in the next 2-3 months, thus ending the continuing issue of tractor transportation.

Kelvin

stonebase · Feb 18, 2004

I have a question for anyone that cares to comment. I am in the process of building a new home on a 5 acre tract of land in a very sparsely populated rural area. The contractor is digging the basement next week and has given me a 6 month window of construction. In the meantime, next month I have a separate crew of Amish carpenters that are building a pole barn (for my proposed CUT purchase among other things) which should be finished in a 7 to 10 day window of time.

My initial thought was to go ahead and buy my tractor after the barn was built so I could utilize it cutting and maintaining the fields as the house was built this summer. This would mean storing the tractor in the barn while the property was unattended during various times of the construction period.

I asked my insurance agent if my homeowners policy on the new property would cover some unforseen loss/theft of the tractor and he said his underwriters advised against this move until the house was done and we legally occupied the premesis. I was fortunate enough to sell my previous residence already and I am living in an apartment so there is no room to store a tractor there and I only have renters insurance to cover my contents maintained there.

Here is where I need advice, is there any kind of policy designed (even if short term, ie 6 months) that I could buy to cover my tractor stored on this remote location, or should one of these insurance policies written by one of the finance companies cover my situation?

I am curious about Kelvin's comments that he has better coverage when his tractor is stored remotely away from his residence.

I really would like to move forward and buy the CUT soon rather than wait till the fall. Does anyone think this idea is too far fetched? I am a little concerned about leaving such a large investment there unattended. The new property is about 10 miles from the apartment so it would be rather difficult with work and all keeping a real close eye on. Also, as I said it is a very sparsely populated area, a 1,500 acre farm accross the road, 40 acre tract next to me, 300 acre farm behind me, something could "happen" and go un-noticed for a good length of time.

Any thoughts, comments or reassurances that could be offerred would be greatly appreciated.

John /forums/images/graemlins/cool.gif

p.s. attached is a picture of the property looking toward farm accross the road

grainger12002 · Feb 18, 2004

There is a Inland Marine policy or Floater that might be available from the agent who sold you your renters policy-however getting coverage on an item like an expensive,new desirable tractor where no one is there to look after it may be expensive and difficult-Good luck,options vary a great deal from state to state,I am in CT.

Lloyd

Glenn9643 · Feb 18, 2004

I am assuming that some sort of "construction insurance" will be in force to cover potential losses during the house construction period? If so, that should cover that end. Don't know what's available in your area, but I purchased a separate all-risk policy for $24K limit with Farm Bureau for $88.00 per year, that covers the tractor and a few implements where-ever. It does not cover any commercial use of the equipment however. No more than that amounts to it seems like a no-brainer if you want to go ahead with the tractor. It's been my experience that you'll probably need the equipment to help with cleanup around the job site too, as I often see contractors let things go until you can't get to the house to work!

Inspector507 · Feb 18, 2004

Always check with your local Farm Bureau first if one exists. You could always get the Inland Marine policy and cancel it after the house is built. Not too many homeowner companies will cover the tractor and the building if you're not living there.

spencer200 · Feb 22, 2004

If you get the insurance the manufacturer offers it will cover the tractor no mater where it is.

rdam · Feb 22, 2004

( If you get the insurance the manufacturer offers it will cover the tractor no mater where it is. )

Exactly. Even if you were going to pay cash....Finance the tractor for 1 year and take the manufacturers insurance. Advise them immediately where the tractor is stored. Kubota insurance is more than adequate. However, they stipulate that you notify them if the tractor is stored at a location other than that used as the primary owners address.