Insurance question

[Dahammer]

<font color="green"> I asked about number 5, unexplained disappearance, and they said if a police report is filed for a theft the disappearance is not unexplained, so theft is covered. Sounds funky but that's what they said. </font>

That was the same as in my policy...sounds like there is absolutely no instance where a disappearance would not be unexplained (just file a police report /forums/images/graemlins/confused.gif ) so I wonder what the whole *point* of that exclusion was?? You are right, it sounds real funky.... /forums/images/graemlins/confused.gif /forums/images/graemlins/confused.gif

What I would like to see is this: Your tractor has theft coverage...

 

[GreenMtnMan]

<font color="blue"> That was the same as in my policy...sounds like there is absolutely no instance where a disappearance would not be unexplained (just file a police report ) so I wonder what the whole *point* of that exclusion was?? </font>

Like legalese, insurance-speak is a language all it's own. /forums/images/graemlins/confused.gif No wonder it takes years to become an insurance underwriter. The Sentry rep was adamant that it was covered for theft. I figure even if there's a problem claiming theft on this policy my homeowners insurance will cover it anyway.

 

[Henro]

This may or may not relate...

But some years ago, my daughter had her mountain bike stolen while at college. She had locked it by the FRONT wheel, and it had quick release hubs.

The next morning she came out and all that was left was the front wheel...

My home owner's insurance covered the loss...less the deductable.

Why? I'm not sure. I don't think it should have, but it did...

So my guess is that the homeowners insurance MIGHT be good enough to have on my tractor(s)...

 

[surfran]

OK I guess I need to add my two cents as I went through this a couple of months back as well. Here is the link to my thread about getting my new BX1800 and most of it really deals with the insurance issue.

To also add to the story, I have Allstate and a good friend also has Allstate and has for over 10 years. He owns a Ford 1720 (I think). Anyhow, we were discussing in the office one day and he said his Allstate covered it. I of course begged to differ according to my agent who explained the "All Risks" issue that upset/collision was not covered. So he calls his agent and the agent tells him he thinks it is covered but will check. Well the agent never called him back, but the other day my friend had to talk to him about something else and remembered to ask. The agent apologized as he was incorrect and the Upset/Collision is not covered. So my friend has been thinking he was covered for about 10 years for this type of thing and would have been VERY suprised if something had happened. He has a very hilly property also.

To make an already long story short, you can't just take what the agent says as correct, you really need to read the policy to find out what is and isn't covered.

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!!!

With all that said, I ended up with a very reasonable Agriculture: Inland Marine policy though Erie and Niagra for $75/yr that covers the listed items (I had to give serial numbers on tractor and implements I wanted covered) up to value declared. It is not Replacement cost, but it at least gives me coverage including trailering up to 100 miles from my property which I do about every weekend during summer to my other property.

That is my story for Allstate Homeowners in NY. I am sure things very by region also, but I would specifically ask the questions even though you may not want to hear the answer, because it is much easier to hear it now then it would be to hear it if something happened and you weren't covered.

Good luck,

 

[MikeD]

Randy- You have made a very good point on agents. They sell the policy they do not apply it to claims. I can not tell you the number of times I have handled claims for insureds who had a agent tell them there was or was not coverage and the agent was wrong. Read the policy yourself. Most homeowners policies insure contents including tractors used to service the premises on a named perils basis. This means the policy says exactly what it will pay for. These descriptions of covered perils are listed in the policy. The first one is fire and so on. You can endorse the policy to provide all risk coverage for contents. This means that everything that could damage the property is covered unless it is excluded. The exclusions are listed in the policy. If the policy is endorsed like this then upset of a tractor would be covered.
The homeowners policies cover the tractors at the insured premises and away from the premises. This will change in the next year. The insurance industry is changing the policies so you will not have property or liabilty coverage for tractors removed from the premises. Mow you neighbors yard and you have no coverage while in his yard.
Kubota requires all risk coverage when they have a loan out on a tractor.

 

[gsganzer]

Thanks for everyone's input. I opted for the Kubota insurance. The inland marine (personal articles) policy from State Farm was more expensive. The Kubota insurance covers everything and includes "like for like" replacement.

Lawyers and insurance companies! I think they're both someone's idea of a cruel joke. /forums/images/graemlins/grin.gif

 

[fivestring]

"Lawyers and insurance companies! I think they're both someone's idea of a cruel joke."

/forums/images/graemlins/grin.gif From the shallow end of the gene puddle...

 

[frank_f15]

my insurance said i am covered for all, as long as i am not hiring out for commerical work, but what they say and how they pay off is 2 different things. lets hope none of us have to find out how well we are covered. /forums/images/graemlins/cool.gif
gentelmen lets not make broad statements about people. my oldest daughter is a lawyer, all she does is put child molesters and child abusers, and wife beaters, in prison. /forums/images/graemlins/laugh.gif but i do like to hit her all the time with lawyer jokes /forums/images/graemlins/grin.gif and if i am not mistaken there are quite a few lawyers on this forum.

 

[MadReferee]

I think the three questions to ask your insurance agent/company are:

1. Does my coverage include replacing my tractor (what percentage of actual cost) if someone rips it off while it is on my property (usually covered) and off my property (usually not covered)?

2. Does my coverage include replacing or repairing my tractor if I destroy it or seriously damage it by rolling it over or crashing it (usually not covered)?

3. If I have coverage for #2, do I also have coverage to retrieve the tractor from the back forty and cleanup and environmental damage I might have done (usualy not covered)?

I included #3 because this item could get rather expensive if you have to have a D3 dozer clear a new trail so the 10 wheel tow truck can get to the back forty. And lets not forget the EPA especially if you roll it into a creek and spill diesel and hydro fluid.

Best to ask now and not later after the fact.

 

[fivestring]

That would make her a prosecutor. Different breed of lawyer. Kinda like a bobcat is a different breed from domestic short hair. /forums/images/graemlins/grin.gif Can live with them. Can't live with ambulance chasing, hot coffee spilling personal injury lawyers.

 

[Henro]

My new BX2200 is being delivered tomorrow.

The dealer asked for my homeowner's insurance agent't name and phone number. Apparently that is all that is need to finance with Kubota Credit...

I may have mentioned previously that I did check with my insurance agent and fire/theft/other? loss is covered by my home owner's policy. Now if I roll it down an hill, that is not covered.

An additional policy is probably not a bad idea anyway...they are not THAT expensive apparently.

 

[GreenMtnMan]

I don't understand Kubota. The Kubota credit app I have says "All Risk" insurance is required, but when you finally buy they don't seem to care.

 

[Henro]

GreenMtnMan and all,

Well I don't have the tractor yet. I will let you know if indeed it does arrive tomorrow with only my home owner's insurance as the guarantee...

 

[MikeD]

I canceled the All Risk endorsement on my personel property. One month later I got a notice from Kubota credit that they required that coverage. They will finance your tractor but they will later notify you that you need that all risk coverage on the tractor.The good news is you then have coverage if you overturn the unit. But I would not want to be making that claim /forums/images/graemlins/shocked.gif The policy does provide coverage off premises as well as on premises --for now.

 

[Henro]

That may answer the question.

I have not signed anything yet...other than the credit application form...the dealer said I could sign when they delivered the tractor. I did see the forms but they were not ready for signing and I did not read them completely at that point. I'll bet they have that "all risk" requirement listed.

Although I am not adverse to the idea of all risk insurance, I feel it will be a waste of money as it is very unlikely I will physically damage the tractor myself. More likely to do that to my b2910 than the little one...certainly will do my best NOT TO DAMAGE either one.

 

[MikeD]

Well when you get that endorsment it applies to all of your personel property. So if you have a loan on the first tractor then you probably have the endorsment on your homeowners policy already. Not to many of us have the problem of multiple Kubotas /forums/images/graemlins/laugh.gif Although I must admit I understand the need for the second tractor for lawn mowing duties. In my case I kept my 20 year old Locke 72" reel mower for the lawn work. Nothing cuts grass like a Locke reel mower. Of course my wife did not see the need for a B2910 and the reel mower but I am sure she will come around some day /forums/images/graemlins/grin.gif

 

[Henro]

MikeD and all,

I just went through the insurance gyrations...had the dealer fax over the paperwork so I could review it before the tractor arrived.

Turns out that most tractors the dealer sells are covered by homeowners policies. He said something like 98%.

I got worried when I read the paperwork and it looked like they were charging $311 for three years of depreciated coverage that was bacically a duplication of what I have.

I got more worried when I read the part of the contract where you actually grant them a power of attorney to make insurance decisions on your behalf if they deem that necessary.

I almost said "forget it" as the idealist in me kicked in.

I spoke with my insurance agent and "almost all" possibilities are covered.

If I rolled the tractor and it hit something like a tree, it would be covered under collision. If I rolled the tractor and it hit nothing it would not be covered.

Apparently, Kubota will accept this homeowners policy. If I wanted a seperate state farm policy it would cost about $150 or a bit more per year.

I know the dealer is right and that it is a standard Kubota Credit contract that thousands of people sign every day, maybe without reading the fine print.

I also know it is a take it or leave it proposition. Kubota is not going to modify their standard contract to sell one tractor to me.

I decided to take my idealism and shove it in this case! Man these tractor are powerful things! Or maybe I am just shoving my principles? Or is it both??? /forums/images/graemlins/blush.gif /forums/images/graemlins/blush.gif /forums/images/graemlins/blush.gif

I never used "I" this much in my life... /forums/images/graemlins/blush.gif

There was no loan on the first tractor. I have made it a policy to avoid debt all my life. This credit business is all new to me.

Boy do I wish zero percent financing would go away! /forums/images/graemlins/smile.gif

 

[Ledgemere Farm]

Greenmtnman,
With that policy, are you sure you are from OR and NOT Waco, TX? /forums/images/graemlins/grin.gif

 

[GreenMtnMan]

<font color="blue">With that policy, are you sure you are from OR and NOT Waco, TX? </font>

I'm sure policies sold in Waco add a FIRE exclusion as well /forums/images/graemlins/wink.gif

 

[IMCA38]

As an insurance claims person, I will throw in my $.02 worth and make a few general observations.
1- Homeowners coverage will generally cover tractors "used on premise exclusively to service the residence premises." Therefore, if you are off premise, or hiring out commercially, you likely won't be covered.
2- Assuming the above, the tractor should be covered similarly to the rest of your personal property, i.e. if you have all-risk, the tractor will be all-risk too. This also should apply to replacement cost. My company paid a claim where an insured's worn out 10 year old zero turn mower burned up. We laid out about $9,000 to replace it with a new model of similar type and quality. I have since wondered what the heck we would do if someone had a Ford 8-N or something like that. Would we buy them a brand new NH utility tractor?- I have no idea.....
3- I can't see how rolling the tractor into a tree is covered and rolling it on the ground not. Most contracts define "collision" as "collision of the covered vehicle with another vehicle or object, or its overturn"
4- The statement about hauling your tractor is correct. If the tractor falls off the trailer and causes an accident, the liability portion of the tow vehicle's policy will cover that, but you will need coverage on the tractor itself for the the damage incurred to the tractor from falling off the trailer.
5- Many homeowner's policies will automatically provide a nominal amount of coverage($500-1000) for utility trailers. Some auto policies may also provide a similar coverage. You should check your existing policies to see. If not, you may also want to consider buying physical damage coverage for your trailer. Remember you will have liability coverage under the vehicle towing it.
6- "mysterious disappearence" is a very unlikely issue for a tractor. You will more likely see it with a quantity of items, livestock for example, where you know that on a particular date you had 60 head in a pasture and 2 months later, you counted and found you only had 50 and there are no dead carcasses in the pasture. In other words, you can't state a certain time period and the is likely no evidence that someone came in to steal them. Another example may be someone who realizes that their ring is missing, but they don't recall specifically if they were wearing it, or had left it laying someplace, etc., but it is now missing.
DISCLAIMER- These are general issues, and your policy may be different, it is very important to read YOUR policy and ask any questions of the agent or local claims rep if you don't understand something or need a clarification.