Insurance Loan Insurance ?

[DavesTractor]

Most homeowner policies include personal property coverage for equipment used to maintain the premises. It is covered for named perils only and coverage is excluded if used for business or off the property. The idea is to cover a riding lawn mower, etc. Generally this coverage is at no extra charge. Most loan companies want broader coverage (no exclusions for off premise use, business use, etc). And of course they want to be named as a loss payee. So would I if I were loaning the money.

In California if you finance through Agri-Credit and do not have adequate insurance, they offer a policy through Holmes and Murphy which is basically physical damage insrance for $7.40/month per $10K financed. Not a bad rate really. Many parts of the USA have lower rates, some areas as low as $2.80/$10K, and many others around $5.40/$10K. I hope that helps give you an idea of costs.

 

[ScottK]

You can try Sentry Insurance. That is who John Deere Credit uses. They don't have individual policies available in every state yet (currently pending state approval in WA state), but you can check for Colorado. I think the policy you would want is called SentryGuard.

 

[jddotson]

I satisfied my insurance requirement on my equipment through Nationwide by getting a commercial general liability policy with a inland marine rider for the equipment. This insures the equipment and provides coverage if I damage someone elses property.

 

[BruceWard]

KTAC (Kubota) insurance will insure other makes. Insurance for my B21 was about $10 a month.

KTAC Insurance Agency

 

[Erik_in_Hoyt]

I use AmFam for home and auto and took out a vehicular policy on my tractor and loader (they rate as separate items for some reason) at roughly $238 a year and I can use the tractor on or off site so long as I am not using it for commercial work. Wells Fargo (who i also financed through) was perfectly happy with this arrangement - also - the "insurance" WF offered me only covers payoff, not actual value of tractor at time of loss or damage. OTOH, I'm going to have to look into one of these "farm" policies - that might save me a couple of $$'s as well.

 

[kthompson]

I have a loan on my tractor for 8,ooo by Wells Fargo Financial. I also have it covered under my home owners ins.

Problem: Wells wants a certificate saying the are lose payee and my insurance only gives a blanket policy. In simple words, they won't say Wells fargo gets the money, Wells would need to get it from me.

So I am forced to take $27.00 a month extra on my loan to cover insurance. I have called around with no luck.

My ?
Does anyone know of a company that will cover the tractor or loan from lose in Colorado for under $27.00 a month or a flat rate of under 100.00 for the year? I only use it to clean up my property so I don't need commercial or crop ins.

This can vary from my state to your state and between companies but I suspect your insurance company is not covering your tractor even if the agent says so. Most will not cover such as a tractor if it has it's own serial number or title with out it being listed on a rider for an extra cost. I don't think they will class a tractor as personal property even if the agent says so. They also often limit the value of any single tool or piece of property. If insured properly think they would be able to list them as lost payee with no problem. Please note, it has been 8 years since I quit selling those policies. So memory may be off a little.

As to the person who said he was upset for having two policies when he only needed one it is possible that company just got the policy you now have or that agent did.

 

[PlumCrazy814]

You can try Sentry Insurance. That is who John Deere Credit uses. They don't have individual policies available in every state yet (currently pending state approval in WA state), but you can check for Colorado. I think the policy you would want is called SentryGuard.

The JD credit insurance is costing me $107.00 for 48 months on a $12K loan, $500 deductible for ag and consumer use, $1000 for commercial use. It is UltraGard physical damage insurance and is underwritten by a member of the Sentry Insurance Group. If you would like a pdf of the policy terms, PM me.

 

[PlumCrazy814]

The JD credit insurance is costing me $107.00 for 48 months on a $12K loan, $500 deductible for ag and consumer use, $1000 for commercial use. It is UltraGard physical damage insurance and is underwritten by a member of the Sentry Insurance Group. If you would like a pdf of the policy terms, PM me.

By the way - it is not a liability policy, just a physical damage policy - it only covers the tractor (and the tires on a conditional basis).

 

[mffarmall]

Thank you all for the information. I have called Kabota and JD they will only ins what they sell. Message with national and agri credit. Sentry is JD.

See who calls first.

 

[blueriver]

I have no mortgage but have equipment loans ... Allstate, my homeowners insurance, has sent my bank loss payee clauses for my equipment with make, model and SN's. It all stays here on the ranch, no custom work. I do have rented ground and it is covered there ... as long as I have provided them with a copy of the written lease agreement. I would re address this with your insurance company.