Insurance need liability insurance

[daugen]

We are with Nationwide (I'm from Indiana I blame Peyton Manning). My agent put me into a farm policy. Covers the home, equipment etc.
I would look for a local independent insurance agent that does farm work. They will know what policy you need and be able to shop it. You will get better results if you are also willing to change your home and auto over to the new company as well.

I think that's very good advice. Many insurance companies write farmowners policies and you don't have to be a "business" to be covered that way, though most are, like boarding horses.
Rate per thousand on Farmowners, versus Homeowners, can get expensive in rural areas with frame buildings. Farmowners are often, but not always, based on old fashioned "fire rates" that are published by location. Unless you have an exceptionally low fire rate due to masonry construction and a large pond on premises with a pump..., you usually want to be rated by "class rates" that are average rates. So...if you are low risk, an individual fire rate might be best; if higher risk, the class rate is usually less expensive. But no matter what, shop around. All of this is irrelevant if you can get a separate small liability policy, but if this concerns you, a farmowners route is a good option, which is a comprehensive policy that is unlikely to have any loopholes that will leave you high and dry.

Insurance is truly the Land of the Big Print Giveth and The Small Print Taketh Away...
All those exclusions hidden far back in the policy, which is usually so full of legal jargon and run on
explanations where you have to decide what it means based on a comma or a semi-colon...horribly boring stuff, and I actually taught
it to trainees for a year. Word by word, every policy. This is why you either have to fastidiously read your policy, which I almost dare you to and get through it,
or you have a competent agent who can analyze your situation and provide a comprehensive solution. And by bundling, perhaps saving you money to boot.

 

[gravelman]

well said..i just spoke to a independent agent representing State Farm and so far...very very helpful just waiting on some numbers etc..

 

[CobyRupert]

I'm curious: You have your tractor registered? With DMV? Does it have a license plate?

I thought only Europe did this? Does anybody else in other states do this?

We don't register tractors over in here in New York, I guess we're a little more "Live Free or Die" :laughing:

 

[gravelman]

i t does have a NH license plate, specifically for tractors. All they need was proof of purchase.. In Massachusetts you have to show proof of insurance, not here..

 

[daugen]

I'm curious: You have your tractor registered? With DMV? Does it have a license plate?

I thought only Europe did this? Does anybody else in other states do this?

not here in NC

 

[oldballs]

As with most TBN posts there is a lot to learn here. My situation.....just as an FYI. Tractor needs no registration. I'm non-farm, but help the neighbors with mowing, burying dead animals, annual hayrides, plowing, tillling, snow removal, grading, small construction projects, and have to trailer it now and then etc. I do it for no payment, just for the helz of it and enjoy helping them out when necessary...... Do get some free cookies and a dinner now and then.:licking:

My concern is for liability and don't care much about damage to the tractor. Thus I have all my HO, Auto, Umbrella, Liability (including the tractor...off the property) with one company for over forty years.

Cheers,
Mike

 

[gravelman]

You are a good man...my insurance company that handles all my other stuff will cover the tractor too...BUT, they call it a "contractors" policy and it is expensive...this is why i decided to reach out and see what others did....and also get some other quotes..

 

[oldballs]

As to a quote..........I'll look that up for y'all ....when I get more time. Probably be good for me to see that number as well...it might scare me.:shocked:

 

[gravelman]

I will let you know the premium and what it covers...

 

[daugen]

Having this discussion made me doubt myself so I called my insurance agent, she called the company and:
I spoke to an Underwriter named Lisa, at ASI and explained about the tractors and mowing and sometimes having to go on the road.** Lisa said, as long as the tractors were used to maintain The yard there would liability coverage.

Well, I got lucky, since yes, it might be a big "yard" but that's what I'm doing, maintaining my property. So my homeowners covers me, as I thought, for my run around the block.
In a year, when my tractor is paid off and the Kubota coverage falls off, I will likely increase homeowner contents coverage a little. I already have replacement cost on contents, which gives me 70% of the dwelling limit, and thankfully there is no coinsurance on contents. A tractor, or any tractor implement, is plain contents unless excluded or limited. Which tractors aren't...unless used for business.

Coinsurance is important, if you have a 100K homeowner limit, 50K on contents, and someone steals your $45k tractor, the insurance will pay for the whole thing. Doesn't matter if you are underinsured for total contents, they will pay up to the policy limit. There isn't a penalty clause on contents like there is on building coverage, in order to qualify for replacement cost coverage.

There is a term called PML for claims, meaning probable maximum loss. It's a determination as to how much of the total insured property could burn up or blow away at any one time.
Since most tractors are out in the barn, usually they won't burn up with the house and vice versa. Now a direct hit by a tornado or a plane, then you can pay policy limits. So when you chose a contents coverage level, either standard or increased, keep in mind the likelihood of losing everything you own in one occurrence. If you live in tornado alley, california brushfire area, along the ocean, I'd buy as much coverage as they will give you that makes sense in your budget. Rarely does anyone complain about having too much coverage in a serious loss.

So all of this is to say your homeowners policy contents will cover your tractor to whatever degree of coverage your policy provides, usually either broad form or all risks, based on either ACV (depreciated market value) or Replacement Cost, (claim paid without depreciation). Homeowner liability you need to check on yourself, make the call. Either way, for non business use, coverage should not be expensive.