I financed a $16k zero turn lawn mower through a bank I had no previous relationship with and they did NOT require any proof of insurance, which seems insane. Nevertheless, I insured it anyway.
Kubota offers a lot of zero percent interest deals on their equipment, but the dealer steers them into KTAC insurance which more than makes up the difference of lost interest. Your own personal insurance company will often insure your equipment for half or less than half of what KTAC charges. My dealer sold me on KTAC saying it was like "insurance on steroids" meaning coverage for things insurance might normally not cover...like filling your diesel tractor with gas, for example. However, I recently had a Kubota zero turn mower at the tail end of its three year warranty...head gasket blew on one cylinder, warped the head, engine wouldn't start. I took it to the dealer for "warranty." The dealer said grass chaff built up around the cooling cylinders and caused the problem. Kubota and Kawasaki (engine maker) denied a warranty claim. I had KTAC insurance on this mower...they denied my claim. Dealer charged me the cost of tearing down the mower / engine to determine the problem. I paid them, and picked up the mower, engine, and all pieces separately; installed new head and gasket over winter myself. Warranty tends to suck, so does insurance.
On this M56SU, its unfair to file an insurance claim if the fire was caused by a defect in manufacturing or materials. Warranty should have to pay. However, nobody will ever definitely be able to tell what started the fire.
