Insurance Homeowners Insurance

[Anonymous Poster]

If you have a tractor and it is not registered to be used on the roads you probably have it insured under your homeowners policy. The homeowners policy covers the tractor if it is used to service your property. You then have coverage for your liability should you damage someone elses property and for the tractor itself. The coverage on the tractor itself can be on a named peril basis which means the policy says exactly what must occur to damage the tractor or it can be on an allrisk basis which covers anything that happens to the tractor unless excluded.
Why am I writing this? Because the homeowners policy is being changed. Under the policy most companies sell your tractor is insured even if you are using it at someone elses property. That means go to a neighbors or relatives and hit their house-you have coverage. Roll the tractor off your trailer or down a hill you might have coverage.The policy most companies are selling was written in 1991 and is called a ISO form. Some companies like Statefarm and Allstate have their own policies. I am not sure of their coverage. BUT the insurance industry came out with a new policy written in 2000. The insurance companies are now going to the various state regulators to get approval of this new policy. The new policy provides NO coverage if you take your tractor off your land. So if you mow the neighbors or your relatives lawn and anything happens you have no coverage.
The 2000 policy will start to be put into place in the near future as your policies renew if your State has approved it. I have called my company to ask about an endorsment to override this exclusion. If you take your tractor off your land you need to check with your insurance agent about this. The agent may not be familar with the changes.Some agents may not yet be aware that the policy is being changed. Ask the agent if your insurer will be selling the 2000 HO-3 policy. Explain to him that you have a tractor and take it off premises. That way if he says you are covered and he is wrong you can take it up with his insurer.
Changes to the home owners policy occur every ten years or so. Usually the changes are small but in this case I find the changes are rather disturbing considering my off premises use of my tractor. I became aware of theses changes when I received a analysis of the policy changes from a insurance company I work with.

 

[BREW]

HOW ABOUT A "HIP-HIP-HORAY" FOR THE GUYS WHO LOOK AFTER US

 

[Anonymous Poster]

My insurance company (USAA) indicates that my tractor is covered on my property,
but only on a pro rated basis (not replacement). This may work for an older
tractor, but for a new machine it might cause problems. I was unable to obtain a replacement
policy even though I have replacement for house and contents.

Just don't want anyone to be shocked.

 

[Anonymous Poster]

Makes me want to call my agent.
DaveL

 

[Anonymous Poster]

Probably going to order a tractor tomorrow AM, this subject is on my mind as well. I hear that in NY homeowners insurance does cover the tracor. Will this be good enough for Deere finaning.

I have read that Kubota and Deere require proof of insurance on finaced tarctors. I am sure others do as well.

I was going to get a letter stating my coverage faxed over just to have when I go to the dealer.

Thanks

 

[Anonymous Poster]

The point is we have coverage under the current policies but that will change if your company adopts the new 2000 edition policy in the next year or two. Be aware that the coverage under this new policy changes for of premises tractor use. If you call your agent today they will be correct in saying that you have coverage but if they start selling the policy written in 2000 the coverage will change. I found out about the changes because I adjust claims for insurance companies and received an analysis of the uncoming changes. By reading the postings you all are probably more aware of the upcoming changes in coverage than the agents and personel at the insurance companies. They may not have received information on the changes. USAA may have its own policies and not use the ISO forms. If this is the case than the changes may not apply to your specific policy. Its a bit confusing but you all now have some idea of what to look out for.
USAA is refering to actual cash value rather than replacement cost. Someone with a newer tractor would have a greater ACV than someone with a older tractor. You lose the depreciation as ACV means what the tractor in its current condition would be worth.

 

[prosperity]

</font><font color="blue" class="small">( Will this be good enough for Deere financing.)</font>

Just a note about Deere - I just financed my tractor through Deere. With the financing I bought a physical insurance policy that covers the whole tractor for the entire term for $100. To add this tractor to my home owners policy would have cost me $80 per year. A no-brainer decision there.

The off premises liability is a different story. I used to have my own lawn care business, and had liability insurance just for that. Now, years later, I'm just doing a couple jobs evenings/weekends. Am I covered? - don't really know anymore. Time to call the agent.

 

[Anonymous Poster]

When I bought my New Holland a couple of months ago, I was required (by NH or by the dealer, I'm not sure which, but the dealer said it was NH) to buy a policy that covers the loan value if the tractor is "not available". Homeowner insurance was not good enough. I forget exactly what it cost, but even though I remember my thought that it was expensive, it was a cheap alternative to get the 0% financing. I'm sure the dealer makes something off it.

 

[Bird]

I don't know how many different kinds of policies are available, but do know that at least some, if not all, homeowner's policies will cover fire, theft, storm, etc. but will not cover collision, upset, rollovers, and such. So everyone just needs to be aware of what insurance coverage they have.

 

[Anonymous Poster]

So the moral is if it rolls..... make sure it catches fire while doing so??? /forums/images/graemlins/smirk.gif /forums/images/graemlins/smirk.gif /forums/images/graemlins/smirk.gif

 

[Bird]

I guess so, if there are no witnesses. /forums/images/graemlins/wink.gif /forums/images/graemlins/laugh.gif

 

[BigDave]

I bought my NH a year ago & a homeowners insurance rider for the tractor was good enough for NH financing. It added about $100 to my annual bill. My agent claims, after checking with the company that I'm covered if I drive down the road a mile or so to get fuel. I'll keep a look out for updates.

 

[BillyP]

Good advice Bird.

Another thing people should check on is make sure your policy covers what the agents says it does. Not all homeowners insurance is the same and not all agents know exactly what they're selling.

 

[surfran]

I live in NY, and can tell you that Bird is correct in his assesment of what my Allstate Homeowners covered. Normal perils, but not the collision and upset which Kubota also required. I ended up getting an Inland Marine policy from Erie&Niagra that covers the unit and it's attachments for most everything but not at replacement cost. Also that policy does not cover liability on others property, so that is where my homeowners would kick in again. That policy cost me $75.00/yr.

I had a difficult time finding someone to insure. State Farm would, but the agent said only if I had other insurance with them. Several others wouldn't even insure. Erie & Niagra may require additional insurance, but I did not check as I already had another policy with them.

 

[grainger12002]

I wallow in this Insurance stuff everyday, I am amazed at the different ways we all look at it-You would think after all this time there would be a better way to express what is actually covered and excluded, but then again those CEO's need those big bonus bucks !!!!!!!!!!!!!!!!!!!!

 

[Anonymous Poster]

In this case it is a matter of now its covered-soon it wont be. The companies change the policies in both directions-adding and reducing coverages as the risks change. I guess to many people are making claims resulting from taking their mowers and tractors off the insured premises. I was pretty shocked to see the coverage completely removed from the new policy. I figured some of the TBN posters might have an interest in the changes. As far as CEO pay-I can only imagine the postings from that thread /forums/images/graemlins/shocked.gif.