kthompson
Elite Member
- Joined
- Sep 12, 2008
- Messages
- 3,509
- Location
- South Carolina
- Tractor
- Kubotas B2710, M6800, L6060 cab, Volvo EC excavator, 2 ZTRs and various implements.
I have seen this asked in many many threads and think would be good to be addressed by itself.
First I am an insurance agent but stopped selling property insurance a few years back but little on such as this has changed. First insurance like this varies from state to state and then from company to company and even within a company depending on how they insure your tractor. I am making my points based upon SC law and what companies offer here.
Homeowners insurance covers more than most people realize. It really is sort of an umbrella coverage with the ability to cover such as lawnmower (some base amount is built in normally) or your tractor depending on the price, size or use they can cover under a "rider" by name and amount. Now what does that cover? Normally basic coverage such as theft, maybe if burnt in building fire What does it not cover, damage you do to it such as running into a ditch or tree falls on it while working. May not give you any liability due to the use of it or may. Often only covered on your property.
A business policy: gives you liability coverage for work done with the machine and covers it while being transported on off your property in addition to all the homeowners covers. It may have property damage covered on the machine for such as tree falling on it while being use but as with your auto insurance the basic coverage on a business policy it to provide liability coverage for damage you do with it. Coverage on the machine itself depending on the plan and the company can be package about like car insurance. If you have your machine covered for damage to it as with collision on your car it may cover transportation cost to haul machine in for repair or repair person to come to it.
A policy with such as John Deere and most likely Kubota: You will find they should cover all of the above and I know at least the JD coverage I have it does cover cost of repair person to come to the machine to do the repair.
As to cost adding it to your homeowners probably will be lowest price and if you are only working on your land, safe with your coverage if you need to drive on the road or haul and pleased with that coverage can be a good way to go.
As to the commercial policy, if you are a business or using your machine for hire the homeowners WILL NOT cover you if you have a claim if they find out you are using it for hire. When you are being paid for the use it is commercial use and you need commercial coverage even if you only need the liability coverage which gives no coverage for your machine, only damage you do to others.
It is very easy to get caught up in the buying of a tractor and not even think of insurance but it may be the most costly mistake you can make with the buying. If you cover it with homeowners and end up doing drives ways for hire and damage a vehicle or worst your machine with blower or mower throws something that injuries a person much less kill them you are facing major lawsuit if you do not have insurance to cover the loss. Also with some insurance sold by dealerships they are fixed premiums based upon the length of the loan and when the loan is paid off it ends. Finance for 6 years and pay off in 3 it ends and there is no refund on the premium. Before you really go to buy the machine I would suggest first calling who ever you have homeowners with and be very honest on the use of the machine and ask about covering under your homeowners insurance. Be sure they are able to tell you what is and what is not covered. Again normally if you use it any for hire there is no coverage at least while doing so. If that does not provide the level of coverage you want such as no liability coverage while using the machine or damage to the machine you cause then ask them about a commercial policy. Now those cost more for the risk they are coverage is much larger. Be sure you ask the liability amount of coverage (if you are truly a full commercial use a million should be considered if you do any chemical application or such as running any machine that can throw things such as blower or rough cut mowers for they do kill.
Then take that info with you to buy the machine and compare to what the dealership offers.
I tell you what we all want is to never need the insurance but sadly sometimes we have a major mishap and need all we have. I bought JD last year with JD insurance, fourth tractor (first JD) and using boom mower pin dropped from left lift arm causing the left side of mower to become free flying up and forward busting left fender. Nothing real serious but had it happened while running highway speed which I just pulled onto job site off of road it would have been much worst for tractor and possibly me and others on the road. Be safe while operating and be safe in your insurance.
Feel need to point this out very direct: on property and casualty insurance they sell it to you and issue it to you based upon you telling the truth. When claim happens and they find out it used outside of the true coverage in the policy they are legal to and will deny the claim and it is all yours. You insurance for personal use and then have business use with adds and doing work for hire and have accident...you have no coverage. kt
First I am an insurance agent but stopped selling property insurance a few years back but little on such as this has changed. First insurance like this varies from state to state and then from company to company and even within a company depending on how they insure your tractor. I am making my points based upon SC law and what companies offer here.
Homeowners insurance covers more than most people realize. It really is sort of an umbrella coverage with the ability to cover such as lawnmower (some base amount is built in normally) or your tractor depending on the price, size or use they can cover under a "rider" by name and amount. Now what does that cover? Normally basic coverage such as theft, maybe if burnt in building fire What does it not cover, damage you do to it such as running into a ditch or tree falls on it while working. May not give you any liability due to the use of it or may. Often only covered on your property.
A business policy: gives you liability coverage for work done with the machine and covers it while being transported on off your property in addition to all the homeowners covers. It may have property damage covered on the machine for such as tree falling on it while being use but as with your auto insurance the basic coverage on a business policy it to provide liability coverage for damage you do with it. Coverage on the machine itself depending on the plan and the company can be package about like car insurance. If you have your machine covered for damage to it as with collision on your car it may cover transportation cost to haul machine in for repair or repair person to come to it.
A policy with such as John Deere and most likely Kubota: You will find they should cover all of the above and I know at least the JD coverage I have it does cover cost of repair person to come to the machine to do the repair.
As to cost adding it to your homeowners probably will be lowest price and if you are only working on your land, safe with your coverage if you need to drive on the road or haul and pleased with that coverage can be a good way to go.
As to the commercial policy, if you are a business or using your machine for hire the homeowners WILL NOT cover you if you have a claim if they find out you are using it for hire. When you are being paid for the use it is commercial use and you need commercial coverage even if you only need the liability coverage which gives no coverage for your machine, only damage you do to others.
It is very easy to get caught up in the buying of a tractor and not even think of insurance but it may be the most costly mistake you can make with the buying. If you cover it with homeowners and end up doing drives ways for hire and damage a vehicle or worst your machine with blower or mower throws something that injuries a person much less kill them you are facing major lawsuit if you do not have insurance to cover the loss. Also with some insurance sold by dealerships they are fixed premiums based upon the length of the loan and when the loan is paid off it ends. Finance for 6 years and pay off in 3 it ends and there is no refund on the premium. Before you really go to buy the machine I would suggest first calling who ever you have homeowners with and be very honest on the use of the machine and ask about covering under your homeowners insurance. Be sure they are able to tell you what is and what is not covered. Again normally if you use it any for hire there is no coverage at least while doing so. If that does not provide the level of coverage you want such as no liability coverage while using the machine or damage to the machine you cause then ask them about a commercial policy. Now those cost more for the risk they are coverage is much larger. Be sure you ask the liability amount of coverage (if you are truly a full commercial use a million should be considered if you do any chemical application or such as running any machine that can throw things such as blower or rough cut mowers for they do kill.
Then take that info with you to buy the machine and compare to what the dealership offers.
I tell you what we all want is to never need the insurance but sadly sometimes we have a major mishap and need all we have. I bought JD last year with JD insurance, fourth tractor (first JD) and using boom mower pin dropped from left lift arm causing the left side of mower to become free flying up and forward busting left fender. Nothing real serious but had it happened while running highway speed which I just pulled onto job site off of road it would have been much worst for tractor and possibly me and others on the road. Be safe while operating and be safe in your insurance.
Feel need to point this out very direct: on property and casualty insurance they sell it to you and issue it to you based upon you telling the truth. When claim happens and they find out it used outside of the true coverage in the policy they are legal to and will deny the claim and it is all yours. You insurance for personal use and then have business use with adds and doing work for hire and have accident...you have no coverage. kt
