Financing Kubota Financing Question

[seapea]

I called KTAC and asked whether the policy just covers the remaining balance on the loan. I was told that was not true. I asked if I could be sent the policy, though, and the individual was not helpful. Basically he told me you get the policy when you sign up for the insurance. I told him I wanted to see the policy before I sign up. He asked if I was in the insurance business. I said no, I just like to see what I may be signing up for...

Yep, I had the same conversation with KTAC regarding getting a copy of the policy. I asked how I'm suppose to buy insurance when I don't even know what is covered by it. Eventually the agent talked to her boss, and agreed to fax me a copy with VOID written on it.

The policy says it covers replacement or repair of the tractor. However, I've been waiting for clarication on an exclusion that, as stated, appears to make the coverage pretty much useless. The agent I talked to about it also seemed puzzled by this exclusion, and was going to talk to her boss about it. This was a week ago. I've called twice and left messages and they are not returning my calls.

 

[Elliott Wave]

Do you have a separate company for homeowner's insurance? Your tractor, if used only on your property, should be covered by your homeowner's policy. That same company should be able to give you a separate policy if you plan on using it off your property, too.

If you have a company that insures some things and not others, you may want to start shopping around for one company that can cover your house, belongings, vehicles, toys, tools, etc.

I live with my father so I personally do not have home owner's insurance.

 

[Elliott Wave]

Yep, I had the same conversation with KTAC regarding getting a copy of the policy. I asked how I'm suppose to buy insurance when I don't even know what is covered by it. Eventually the agent talked to her boss, and agreed to fax me a copy with VOID written on it.

The policy says it covers replacement or repair of the tractor. However, I've been waiting for clarication on an exclusion that, as stated, appears to make the coverage pretty much useless. The agent I talked to about it also seemed puzzled by this exclusion, and was going to talk to her boss about it. This was a week ago. I've called twice and left messages and they are not returning my calls.

I guess they figure most people do not want to be bothered to read these types of documents!

 

[bandit67]

I live with my father so I personally do not have home owner's insurance.

Yes, but if he has the homeowner's insurance, you can still check to be sure his policy covers it. Since you live there, all of your 'stuff' should be covered anyway. If it becomes an issue, then tell the insurance company it's his tractor.

Since it seems like Kubota's insurance coverage is a bit gray, it sounds like we're all better off with coverage that we know will be there whether we're making monthly payments or not.

 

[stimpee]

I just bought a B3030 and went through some of this, although this discussion does raise some interesting questions.

I contacted State Farm, with whom I have my home insurance. I was told that my tractor is covered for "personal" use, whether on my property, on someone else's property, being transported, etc. However it is covered for the typical things your stuff is covered for on your home insurance. This means theft, comprehensive type coverage (vandalism, etc), fire, hurricane damage, etc.

It is NOT covered for "accidental" damage, such as if I drop a tree on it while working, run into another tractor or vehicle, roll it down a hill, etc. If I break it, it is my own problem. This was the deal killer for me, since the Kubota financing specifically states that the coverage must include accident and "upset". So, while my homeowners coverage is, for me, more than adequate once my financing period is up, it is not adequate to cover the tractor during the financing period. There may be better alternatives to the Kubota insurance, however my particular homeowner's policy is not one of those "better" options.

Steve

 

[bandit67]

I have State Farm and specifically asked my agent if a tree fell on it, if it would be covered. I was told yes. The agent also had to submit paperwork to satisfy Kubota's requirements that the machine be fully covered during the finance term, and I've not been advised that there were any issues. As far as I know, Kubota is satisfied that 'their' tractor will be covered.

I'm probably going to re-verify, and I suggest you try to do the same, though I suspect it may be a little late for you now.

 

[seapea]

I have State Farm and specifically asked my agent if a tree fell on it, if it would be covered. I was told yes.

Fell, as in during an act of nature (or it was just old and toppled), then sure, it is covered. But if it fell because you knocked it over, I doubt it is covered. I doubt you homeowners would cover your house if you knocked a tree on to it either. Typically homeowners covers losses due to perils, theft, or physically losing something, but not due to neglect or carelessness on your part. Think of it as being similar to your car's comprehensive coverage. You need collision to cover damages caused by your mistakes.

 

[Ob1kubota]

Fell, as in during an act of nature (or it was just old and toppled), then sure, it is covered. But if it fell because you knocked it over, I doubt it is covered. I doubt you homeowners would cover your house if you knocked a tree on to it either. Typically homeowners covers losses due to perils, theft, or physically losing something, but not due to neglect or carelessness on your part. Think of it as being similar to your car's comprehensive coverage. You need collision to cover damages caused by your mistakes.

I have financed six Kubotas through KCC and State Farm Home owners was good enough to secure the loans. I think Dean and crew will work with risk but with due diligence and Dealer influence is a plus. My experience has been pleasant and the automatic payment opt takes the worry out of the payment dates and late charge potential if you forget to cut the check.

 

[bandit67]

Fell, as in during an act of nature (or it was just old and toppled), then sure, it is covered. But if it fell because you knocked it over, I doubt it is covered.

Ok, well I see what you are looking at. But I don't plan on plowing into a tree hard enough to knock it onto the house. Not sure I really could hit any of my trees hard enough to accidentally knock one onto the house.

 

[stimpee]

Ok, well I see what you are looking at. But I don't plan on plowing into a tree hard enough to knock it onto the house. Not sure I really could hit any of my trees hard enough to accidentally knock one onto the house.

I agree, but what if I was stupid and rolled it? Or knocked out a post on my barn overhang and dropped the roof on it?

Things like that, while unlikely, are not risks I would ultimately want to take, at least not while I am still paying for the tractor! And frankly, the coverage by State Farm, because of those types of exclusions, does not meet the LETTER of the requirement that Kubota puts forth.

However I would imagine that I could have gotten away with "certifying" that my coverage met their requirements, and saved myself some money. I chose not to do so.


BTW Bandit, I took delivery of my B3030 last Friday evening. I talked myself out of the hoe, since I couldnt justify it, and had already blown my budget by quite a bit. I have only used the loader a few minutes before I removed it, and since then have just cut 3 acres of grass twice with the 72" MMM. However I have to say, this tractor is awesome. I am thrilled to death so far!

I am not sure how you are holding up waiting for yours!!

Steve

 

[seapea]

I agree, but what if I was stupid and rolled it? Or knocked out a post on my barn overhang and dropped the roof on it?

Things like that, while unlikely, are not risks I would ultimately want to take, at least not while I am still paying for the tractor! And frankly, the coverage by State Farm, because of those types of exclusions, does not meet the LETTER of the requirement that Kubota puts forth.

However I would imagine that I could have gotten away with "certifying" that my coverage met their requirements, and saved myself some money. I chose not to do so.

Couldn't agree more, but...

Did you read the following exclusion in your KTAC policy:

20. For loss while the collateral is in the possession or control of you, your employees, or your representatives.
​

I called KTAC about this last week. The agent seemed to be surprised by this exclusion, and was suppose to talk to her boss to see if it means what it really seems to mean. If it does, then this insurance is all but useless. I never got a call back. I have called 3 times since, and never get through to an agent. I leave voicemail messages with two call back numbers, and they never call back. Previously to asking this question, I had no trouble getting hold of an agent or getting calls returned.

 

[stimpee]

Couldn't agree more, but...

Did you read the following exclusion in your KTAC policy:

20. For loss while the collateral is in the possession or control of you, your employees, or your representatives.
​

I called KTAC about this last week. The agent seemed to be surprised by this exclusion, and was suppose to talk to her boss to see if it means what it really seems to mean. If it does, then this insurance is all but useless. I never got a call back. I have called 3 times since, and never get through to an agent. I leave voicemail messages with two call back numbers, and they never call back. Previously to asking this question, I had no trouble getting hold of an agent or getting calls returned.

Revival of this thread, since I just got my "Ohio Indemnity Company" policy in the mail.

My policy says:

20. For loss while the collateral is in the possession or control of the creditor, creditor's employees, or creditor's representatives.

In this case, per the definitions at the front of the document, creditor = lender not YOU.

Also, the policy clearly covers the replacement cost or actual cash value of the tractor and implements, etc, not just the loan balance, for those that were wondering.

Now whether you will have to argue the actual value of it in the case of a loss, who knows...

Steve

 

[seapea]

Thanks so much for the update. Mine clearly says "you" and not "creditor", so they must have updated the policy. Mine says "SIP-200 (10/2006)" in the lower left corner of each page. What does your says.

The frustrating thing is that after I initially brought this up with KTAC and asked for a clarification, I never got a call back, even after 4 followup calls where I left a message. It really appeared to me that I was getting the run around because I noticed something that they didn't want me to notice.

Chris

 

[stimpee]

Thanks so much for the update. Mine clearly says "you" and not "creditor", so they must have updated the policy. Mine says "SIP-200 (10/2006)" in the lower left corner of each page. What does your says.

The frustrating thing is that after I initially brought this up with KTAC and asked for a clarification, I never got a call back, even after 4 followup calls where I left a message. It really appeared to me that I was getting the run around because I noticed something that they didn't want me to notice.

Chris

Mine says ISP-600 (10/2006) in the lower left corner.

Also, in the upper right corner, in tiny tiny print, it says:

AF033T Rev 1 01/07

Now, the lack of response is a different issue. I would be making thier lives miserable until someone responds...

Or ask your dealer for support on that question.

Steve

 

[jinjimbob]

I just financed a Kubota, the dealer just asked for a copy of my home insurance and policy number.

I also found it funny that you get around $300 off if you do not finance a B2320 tractor, but if you do finance through them, they add $125. Kind of a weird mixture.

 

[seapea]

Revival of this thread, since I just got my "Ohio Indemnity Company" policy in the mail.

My policy says:

20. For loss while the collateral is in the possession or control of the creditor, creditor's employees, or creditor's representatives.

In this case, per the definitions at the front of the document, creditor = lender not YOU.

Steve

Based on the info you gave above, I decided to go ahead and get the KTAC insurance. Your timing was good because the offer was going to expire the next day. I just got the policy today and it does indeed have clause 20 as stated above, so all is good. Thanks again.

Chris