TRACTOR Insurance

[vvanders]

I'd highly recommend not insuring it through your homeowner's insurance. Heard plenty of stories of people making small(less than $2k) claims and getting dropped + blacklisted. All the companies share claims/ask about it so it's very easy to get into a spot where you can't get insurance which leaves you in a world of pain if your mortgage requires it.

 

[daugen]

I'd highly recommend not insuring it through your homeowner's insurance. Heard plenty of stories of people making small(less than $2k) claims and getting dropped + blacklisted. All the companies share claims/ask about it so it's very easy to get into a spot where you can't get insurance which leaves you in a world of pain if your mortgage requires it.

Vvanders is sure correct, this is why I recommend high deductibles.

Decades ago the property casualty insurance industry started sharing data on property losses. Not just homeowners.
Each company entered claim data into the master system, as the claim file was closed, and your name and address and loss amount were recorded, with some claim code designating
the type of loss. Like jewelry. Jewelry is a biggie since mysterious disappearance coverage comes with jewelry floaters and moral hazard
is a key issue. While underwriting for Travelers Insurance in the metro DC area during the 70's, we had a Congressman's wife who was clearly supporting her lavish life style
by putting in phony jewelry losses. Down the garbage disposal, fell off in the pond, everything but the dog ate it. We could not get off that fast enough. There were no industry databases then, so the Congressman went to Chubb or some other big company, lied on the application which back then you could get away with, and started losing jewelry again.

Insurance companies can elect to run that database for a small, very small...., fee during upfront underwriting, or some let the claims dept use it to find out
if you didn't tell the truth on the policy's application. So it's an afterwards gotcha, not an upfront decline, they rescind your policy, give you a part year or whole year premium refund
and tell you to take a walk, no claim payment of any size. You don't hear a lot about this because folks don't like to admit they got caught.

Moral of the story, don't fib on property losses. They also collect data on auto claims, even comprehensive claims like windshields.

while I paid off the zero interest note on my Kubota KTAC covered the tractor, like many of you. And when it was finally paid off last Fall, I had to consider whether my homeowners was adequate. For me, it is. If I had a trailer to haul my tractor, I'd buy extra insurance. If I charged money for using my tractor, I would buy all kinds of extra insurance.
But if have a stupid attack and hit the guy wire for the power pole and pull down the pole, the transformer, the works, well the nice local power company will send a really big bill to me and my homeowners policy will pay every penny of it. If i put a dent in the barn siding backing up? Probably wouldn't admit it...

 

[MaximizerMatt]

I used to manage a NH dealership and the CNH insurance was pretty good. Covers pretty much any loss or damage on or off premises. Most buyers would opt for it when financing their CUT as it was rolled into their monthly payment and was pretty reasonable (typically $12-20/mo for a 25-45 hp tractor) depending on deductibles. Was typically same or lower cost than putting it on their homeowners and provided better coverage. I recall only one customer using it in the 1.5 years I was at that store. He was pushing a large pine tree down with his Workmaster 33. Tree broke forward and tractor ran over the stump causing some damage to hydro lines, filter, and some brackets underneath. Total repair was around $1400; CNH covered the $400 after his $1K deductible with no questions asked.

At the time, CNH insurance was (presumable still is) underwritten by AMTrust. They also told me that as long as premiums are paid, they will not cancel the policy due to 'over use.' As in, if he incurred damage multiple times over the life of the loan, they would always cover him, less the deductible (per incident).

 

[fried1765]

There are two insurance issues, liability and damage to tractor. Your current homeowner covers quite a bit. Unless you damage your own equipment, you are well covered if the tractor stays on your property. In some cases, like mine, I'm allowed to drive my tractor on public roads so I can get to the far side of my property with different road frontage. Considered maintenance of home property.

You may not charge a penny for work done with your tractor or your homeowners coverage simply vanishes. If you insure your tractor separately on a personal articles/inland marine/floater style all risk policy, you usually can use the tractor for any purpose, including hauling it off site.

If you are using your tractor for farming, you need a Farmowners Policy usually, which provides a broad range of coverages specially tailored to farmers, sensibly. Otherwise if just for personal use, and you stay on your property, your homeowners is adequate for most folks. You can have 50K contents coverage and if you destroy a 40k tractor, they will write a check, there is no limit per piece of equipment for anything used to maintain the home premises. A big corn combine might be a stretch...

Look at the bottom of this page and see the links to other threads on this topic. Has been well covered, something that concerns most of us.
This insurance has not changed in a long time. I am a retired insurance underwriter, btw.

Hard to go wrong with Farm Bureau, but this coverage is pretty standard and usually easily available.

"you can have 50K contents coverage and if you destroy a 40K tractor, they will write a check"

Not true!!......... at least,..... for those of us who have USAA homeowners insurance.
I asked about a potential fire loss of my Kubota L48 TLB ( which I do not use commercially), and USAA said no.

I now have an inland marine policy for $33K ($1,000 deductible) that costs me $500/yr., and covers the machine even if I should transport it, or use it elsewhere.
I don't like the $500 cost, but my tractor lives in an unattended/unmonitored barn for 6 months each year.

$500 buys me piece of mind. (1.56% of 32K - per year)
If I lost the TLB due to theft, or some catastrophe, it would not be the end of my world, but I sure as he11 would be very upset.

 

[Racenut]

I now have an inland marine policy for $33K ($1,000 deductible) that costs me $500/yr., and covers the machine even if I should transport it, or use it elsewhere.
I don't like the $500 cost, but my tractor lives in an unattended/unmonitored barn for 6 months each year.

I just insured my new LS through CNH for a bit over $31K, also $1000 deductible and premium is less than $500 for 2 years, $218 per year. I know there are other factors that determine premiums and you may have other reasons for insuring where you do, just posting that up in case it might save you a few dollars. I'm also in California, not known for anything being less expensive.

 

[RNeumann]

"you can have 50K contents coverage and if you destroy a 40K tractor, they will write a check"

Not true!!......... at least,..... for those of us who have USAA homeowners insurance.
I asked about a potential fire loss of my Kubota L48 TLB ( which I do not use commercially), and USAA said no.

I now have an inland marine policy for $33K ($1,000 deductible) that costs me $500/yr., and covers the machine even if I should transport it, or use it elsewhere.
I don't like the $500 cost, but my tractor lives in an unattended/unmonitored barn for 6 months each year.

$500 buys me piece of mind. (1.56% of 32K - per year)
If I lost the TLB due to theft, or some catastrophe, it would not be the end of my world, but I sure as he11 would be very upset.

USAA covers it while on the insured property (typical of most home owner policies). Once it crossed the property line you are on your own. Or so they told me.

 

[fried1765]

USAA covers it while on the insured property (typical of most home owner policies). Once it crossed the property line you are on your own. Or so they told me.

Just got off the phone with USAA.
Long conversation!
Apparently the earlier USAA info I received was not correct! (Been a USAA member for 58 years - often get bad info)
Basically......you are correct!

I currently have $5k deductible on my homeowners policy.
I want a 1K or 2K physical loss deductible on my L48.

I can change my home owners deductible to $2K for and additional $164.07, or to $1K for $334.50.
I will change to $2K deductible, which will be $2K for the house, and each of the barns, including whatever personal property inside, plus the L48, and Ford 1920, whenever either might be outside.

Therefore: If my L48 catches on fire (I carry an industrial rated 5lb. mounted extinguisher) while sitting in the yard I will be liable for the 2K deductible.
If it catches fire while sitting in my barn, I will be only subject to a single $2K deductible for the entire barn loss, including all the equipment inside.

Thank you RNeumann:
I will be dropping my $1K inland marine policy when it comes up for renewal in June. (I bought that specifically for transporting the L48 from Maine last June)
Not quite apples to apples, because no off property tractor loss coverage, but deductible on my 3 buildings goes from $5K to 2K.
That is a GOOD thing!

Another advantage: Can you come over and dig a hole for me?
Sorry....I can't. Off my property, I have no insurance for liability, or loss of my tractor.
We are talking about the liability suit prone Northeast here.

 

[daugen]

Sorry....I can't. Off my property, I have no insurance for liability, or loss of my tractor.

I was invited by local farmers to join in their traditional tractor parade up and down our local country roads. I knew the answer but called agent anyway.
A normal homeowners will pay for any damage to your tractor, including fire and theft, while the tractor is on the main listed premises. Once you go off home premises you really need separate coverage for both liability and physical damage. Running bare for physical damage is a reasonable choice for low valued equipment. But it's a terrible idea to run bare without any liability coverage. And the value of your equipment will have little to do with how much you are sued for.

 

[JerryK]

While homeowners insurance usually covers riding lawn mowers, small garden tractors, maybe even small CUT's. You should consider paying extra for a rider to cover the more expensive tractors and implements. You usually have to provide the insurance company all serial numbers and your original purchase price for the tractors and purchased equipment. You can also buy an umbrella liability policy [ million dollar or more ] to cover your arse for whatever. Not saying any of this makes sense, or is worth it, but I sleep better.... so YES. Worth every penny.

 

[fried1765]

While homeowners insurance usually covers riding lawn mowers, small garden tractors, maybe even small CUT's. You should consider paying extra for a rider to cover the more expensive tractors and implements. You usually have to provide the insurance company all serial numbers and your original purchase price for the tractors and purchased equipment. You can also buy an umbrella liability policy [ million dollar or more ] to cover your arse for whatever. Not saying any of this makes sense, or is worth it, but I sleep better.... so YES. Worth every penny.

Just today, I confirmed that my homeowners policy (USAA) DOES cover my Kubota L48 TLB for the full (used) $33K value, minus the homeowners policy named deductible amount.
On that basis, I see absolutely no need for additional coverage (expense).
I do keep some pictures, though for replacement value coverage purposes that may not always be necessary.