I specifically checked with my agent about insurance of a tractor (state farm) and he stated the following...and said it holds for ALL underwritten policies.
1. When you buy homeowner insurance, you have to specifically list the buildings that are on the property. These buildings are then covered (less deductible).
2. Any vehicles have to have their own coverage, even if their just stored in the garage.
3. All policies have a contents insurance clause whice allows a certain percentage of the structures value to cover general contents. For example, if the Structure is insured for $300,000 and the content clause allows for 20% content coverage, than the policy will ONLY pay out $60,000 for loss of contents (not counting structure). All policies state in writing what the allowed content inclusion is. IF YOU have any expensive collections, expensive cameras, expensive gun collection or jewelry THEY MUST have their OWN policy or else be lumped into the general contents rules.
4. If i had a tractor and ran into the side of my building, the building IS covered..the damage to tractor isnt. If a tree breaks off and destroys the cab of my tractor..... NO COVERAGE.
If the snowblower lobs a rock and destroys the neighbors window...no coverage (ALL work done off my residence is not covered unless the tractor has a comp/collision policy of its own. Any work done snowblowing off of my property is not covered.
If the tractor is INSIDE my shop and the shop burns down, the tractor would/may be covered under the contents clause.....but open to contention in a claim.
Personally for a few hundred a year i feel better having a policy on my tractor that covers everything i do with it. If its stollen its 100% covered with $500 deductible. Also, all the implements are covered less deductible.
