Insurance - Used Tractor

[JME81]

If I understood KTAC correctly they will give you 100% of original purchase price towards a replacement [AFFILIATE='1, nofollow=true, newwindow=true, title="Kubota"']Kubota[/AFFILIATE] tractor. OR 80% in cash should you not choose to replace it. Someone please correct me if I’m wrong. There are just so many twists to insurance of all types.

They told me since it's used and paid off, that is what they would cover. New on the other hand is what you're describing.

 

[Jrasband]

So far what we understand is that KTECH will cover the value at time of purchase for the first 3 years. They quoted us at $94/month for a 50k tractor. Farm Bureau had similar insurance on other levels but we are trying to determine now if they would replace it at value at time of purchase, or if it depreciates right away in their eyes. Farm Bureau is $18/month. Big difference.

 

[dstig1]

Most tractors get automatically covered on your homeowners policy as personal property, but it makes a lot of sense to talk to them and ask if it needs some special rider or whatnot as insurance laws vary by state a lot. BUT... if it leaves your property and gets damaged, then they won't pay under homeowners. So if you are regularly taking it off your land on public roads, for example, then you will need either what they called an Inland Marine policy on it, or something more specialized like KTAC. Yes I have been through this before when I was storing my tractor in a farmers shed and trailering it back and forth to my property....BUT again - laws vary a lot by state so you need to ask your agent.

 

[AndyMA]

I dropped a tree on my MX5200. KTAC covered it all. Zero issues

Andy

 

[mikester]

Most tractors get automatically covered on your homeowners policy as personal property, but it makes a lot of sense to talk to them and ask if it needs some special rider or whatnot as insurance laws vary by state a lot. BUT... if it leaves your property and gets damaged, then they won't pay under homeowners. So if you are regularly taking it off your land on public roads, for example, then you will need either what they called an Inland Marine policy on it, or something more specialized like KTAC. Yes I have been through this before when I was storing my tractor in a farmers shed and trailering it back and forth to my property....BUT again - laws vary a lot by state so you need to ask your agent.

Careful with this advice. Lawn tractors go under homeowners policies yes, "commercial" or AG tractors NO. Talk to your insurance agent, get coverages in writing, and don't make assumptions that you will get coverage from a company that makes money by NOT paying out on claims.

The nasty surprise I discovered during this years renewal was that I'm paying a premium on an insured value $X, but after the 5 year limited depreciation waiver they only pay out based on what THEY think your machine is worth at the time of claim, not what you are paying insurance premiums on value. So even if you are paying a premium on $100,000 the insurance adjuster will offer to cut you a cheque for $50K because you surpassed the 5 year mark and tell you "thanks now FO". FYI Some insurance companies have 2 year limited depreciation waiver policies.

Remember, when going to the casino and betting against the house, the default is the house always wins.

 

[dstig1]

Good point Mike. I was thinking homeowner CUTs not Ag stuff, and not sure where the line gets crossed from one to the other but I did talk to my agent about ours. But that advice still holds - talk to your agent and explain what you have...

 

[ROUSTABOUT]

Careful with this advice. Lawn tractors go under homeowners policies yes, "commercial" or AG tractors NO. Talk to your insurance agent, get coverages in writing, and don't make assumptions that you will get coverage from a company that makes money by NOT paying out on claims.

The nasty surprise I discovered during this years renewal was that I'm paying a premium on an insured value $X, but after the 5 year limited depreciation waiver they only pay out based on what THEY think your machine is worth at the time of claim, not what you are paying insurance premiums on value. So even if you are paying a premium on $100,000 the insurance adjuster will offer to cut you a cheque for $50K because you surpassed the 5 year mark and tell you "thanks now FO". FYI Some insurance companies have 2 year limited depreciation waiver policies.

Remember, when going to the casino and betting against the house, the default is the house always wins.

Yeah, if most people have done a five year deduction IRS taxwise.... But a lot of people can do a one year deduction if it's over 6,000 pounds. That goes for trucks and SUV's too.

 

[mdhughes]

Do you plan on taking your tractor off your own property? If so, make sure that the insurance you get will cover it in transport and when you get to where you are going. This is one of the reasons I have kept the Kubota insurance up.