Insurance (State Farm)

[NMBob]

Hi kids! State Farm is having all kinds of trouble figuring out how to insure my BX23S. I have a car and a house with them. "The underwriter" (I don't know if that means they are going through a 3rd party company or what) can't handle the whole thing being a package deal of $25K. They want to know how much the tractor is, how much the loader is, and how much the backhoe is. This last iteration they wanted to insure the tractor for $25K, the backhoe for $1600 and the loader for $900. Oh and the ROPS for $400. When I stopped laughing I said, "wrong". They tried to contact the dealer, but they won't get back to them. I guess I'll try. It doesn't really seem like a great dealer. Anyone know where the individual values are listed? Can I use add-on prices from the Kubota site for the other tractors, for example, like the ______ (I don't know which tractor the 23S is close to), the LA344 and BT602? Thanks!

 

[SDT]

Hi kids! State Farm is having all kinds of trouble figuring out how to insure my BX23S. I have a car and a house with them. "The underwriter" (I don't know if that means they are going through a 3rd party company or what) can't handle the whole thing being a package deal of $25K. They want to know how much the tractor is, how much the loader is, and how much the backhoe is. This last iteration they wanted to insure the tractor for $25K, the backhoe for $1600 and the loader for $900. Oh and the ROPS for $400. When I stopped laughing I said, "wrong". They tried to contact the dealer, but they won't get back to them. I guess I'll try. It doesn't really seem like a great dealer. Anyone know where the individual values are listed? Can I use add-on prices from the Kubota site for the other tractors, for example, like the ______ (I don't know which tractor the 23S is close to), the LA344 and BT602? Thanks!

Prior to recently selling, I had everything insured with State farm.

No issues if you have a farm policy rather than a residence policy.

If you have a residence policy, you may need a blanket rider.

Do not expect any help from dealer as there is nothing in it for them.

 

[NCL4701]

You’re in NM and I’m not so this is more something to consider than an allegation of fact. Depending on what forms they’re writing it on, they may have to separately schedule implements, which can be defined as anything removable from the base tractor. A quick attach loader and backhoe that can be swapped for a three point hitch would qualify as attachments for many carriers.

“The underwriter” is likely clueless on the value of any of the items together or individually so they need something in writing upon which to base the limits to keep their boss off their butt and avoid a mess if you have a claim. If you have a bill of sale that breaks it out, or if you can print a “build your Kubota” build sheet from Kubota’s website to provide some documentation of the relative value of the items individually, that will likely satisfy their request and at least get you in a realistic range.

 

[PaulL]

I think the BX23S comes with loader and backhoe attached, and so you don't get a break out of price.

It's similar to a BX2380 with a loader on it and an optioned backhoe. I can't recall though if you can add a backhoe to a BX2380 or you have to buy the backhoe as part of the kit with the BX23S. But I guess you could build a BX2380 with loader, and a BX23S with similar options, the difference in price between the two is the price of the loader.

 

[fried1765]

Hi kids! State Farm is having all kinds of trouble figuring out how to insure my BX23S. I have a car and a house with them. "The underwriter" (I don't know if that means they are going through a 3rd party company or what) can't handle the whole thing being a package deal of $25K. They want to know how much the tractor is, how much the loader is, and how much the backhoe is. This last iteration they wanted to insure the tractor for $25K, the backhoe for $1600 and the loader for $900. Oh and the ROPS for $400. When I stopped laughing I said, "wrong". They tried to contact the dealer, but they won't get back to them. I guess I'll try. It doesn't really seem like a great dealer. Anyone know where the individual values are listed? Can I use add-on prices from the Kubota site for the other tractors, for example, like the ______ (I don't know which tractor the 23S is close to), the LA344 and BT602? Thanks!

Is it not possible for you to insure your new Kubota for "replacement value" (not depreciated) as a homeowner item?

 

[NMBob]

Prior to recently selling, I had everything insured with State farm.

No issues if you have a farm policy rather than a residence policy.

If you have a residence policy, you may need a blanket rider.

Do not expect any help from dealer as there is nothing in it for them.

Yeah, it's just a residence. Maybe I'll buy a farm to go with the tractor.

So I asked Kubota the same question after I did here and they wrote back and said to ask the dealer for a price, because each dealership is independently owned...so there's no MSRP for these things? If the dealer can just change the price willy nilly then how am I supposed to come up with a replacement price? It's getting a little goofy.

 

[NMBob]

Is it not possible for you to insure your new Kubota for "replacement value" (not depreciated) as a homeowner item?

They said no. I thought it would just be personal property, since it's not something I can/supposed to drive on the street.

 

[NMBob]

I think the BX23S comes with loader and backhoe attached, and so you don't get a break out of price.

It's similar to a BX2380 with a loader on it and an optioned backhoe. I can't recall though if you can add a backhoe to a BX2380 or you have to buy the backhoe as part of the kit with the BX23S. But I guess you could build a BX2380 with loader, and a BX23S with similar options, the difference in price between the two is the price of the loader.

They didn't like the all-in-one price. I guess I see their point. If just the backhoe gets stolen it could get confusing...but not really. I'd think it would be the same as one side of your car getting scraped. I suppose doors aren't really made to be detached, though.

Good idea, but isn't the cost of the 23S supposed to be less than the cost of buying everything separately? I guess I could just insure it for those "full price" values, but they won't be for the exact models, which will probably be a problem. However, if I want to insure it for $1,000,000, and pay the premiums, I should be able too, right?

 

[NMBob]

You’re in NM and I’m not so this is more something to consider than an allegation of fact. Depending on what forms they’re writing it on, they may have to separately schedule implements, which can be defined as anything removable from the base tractor. A quick attach loader and backhoe that can be swapped for a three point hitch would qualify as attachments for many carriers.

“The underwriter” is likely clueless on the value of any of the items together or individually so they need something in writing upon which to base the limits to keep their boss off their butt and avoid a mess if you have a claim. If you have a bill of sale that breaks it out, or if you can print a “build your Kubota” build sheet from Kubota’s website to provide some documentation of the relative value of the items individually, that will likely satisfy their request and at least get you in a realistic range.

Got it.

They don't have to list the individual items here, but the ROPS, loader and backhoe were listed with $0, or included, I forget. Neither the LA340 or the BT603 show up for sale or add-on. They are "just for" the BX23S package. It's kind of a Catch 23.

 

[Old Machinist]

This may sound like a convoluted way to do it but you could go on Kubota's web site and build a comparable new tractor with those options. Use those figures to calculate the percentage of the total package for each add on. Find some comparable packages to your tractor on some of the online listings and use the percentages calculated from a new build to break it down.

 

[fried1765]

They said no. I thought it would just be personal property, since it's not something I can/supposed to drive on the street.

I have an L48 TLB, for use on my property only.
I have USAA coverage, and it is covered under my "replacement value" homeowners policy.

 

[Kurtee]

Inland marine policy from State Farm. Maybe need a different agent and or underwriter. My inland marine just uses a dollar amount. On my farm policy each piece is listed separately. Homeowner policy, farm policy, contractor liablilty policy, inland marine policy, all individual policies.

 

[chim]

We had State Farm for many years and everything went well. Had a Jeep YJ top get blown / flipped and broke the rear window when it landed on my RFM. No cost, no funny business.

We ended up with Erie around 2012 when our SF agent couldn't get me coverage for tractors being used offsite. This was non-business. The agent suggested I shop around for tractor insurance because he couldn't help. He said if I took payment for the work he could get me a policy, but it would be horribly expensive. I do volunteer snow removal and move materials around for the church and gun club.

 

[Speed25]

I just went through this with State Farm here in NC on my BX25D. I had to spell it out for them. This model was NOT available in any other configuration, the loader wasn't an option, nor was the backhoe. You couldn't order this tractor without those items. Policy in place now. Oddly enough, they never asked these questions on my L2501, even though the loader WAS optional, as was the HST and 4wd, etc.

 

[PaulL]

They're just doing their job. If you give them a list of stuff to insure, they'll ask for the price of each piece. If you just listed it as "BX23S" then they'd have no idea that model consists of a BX2380 + loader + backhoe.

You can insure for whatever price you like. But unless you have guaranteed value, they'll only pay out what they think replacement value is. So if you insure for $1m but it's only worth $23k, you're wasting a lot of money, they'll only ever pay out $23k. At least, that's how it works in my part of the world.

I'd just get the prices from the Kubota website, do some maths to make something that looks vaguely right, tell them those are the values. As long as you're happy to get paid that value for those individual bits if they get stolen, then no issue. The underwriter is just an order taker, they'll just punch it into the computer and be happy. The arguments always come after the fact when you try to claim, not at the point where you insure.

 

[fried1765]

They're just doing their job. If you give them a list of stuff to insure, they'll ask for the price of each piece. If you just listed it as "BX23S" then they'd have no idea that model consists of a BX2380 + loader + backhoe.

You can insure for whatever price you like. But unless you have guaranteed value, they'll only pay out what they think replacement value is. So if you insure for $1m but it's only worth $23k, you're wasting a lot of money, they'll only ever pay out $23k. At least, that's how it works in my part of the world.

I'd just get the prices from the Kubota website, do some maths to make something that looks vaguely right, tell them those are the values. As long as you're happy to get paid that value for those individual bits if they get stolen, then no issue. The underwriter is just an order taker, they'll just punch it into the computer and be happy. The arguments always come after the fact when you try to claim, not at the point where you insure.

"Replacement value", is the proper term!
Guaranteed value, places a fixed/agreed limit on payout ( good for vintage cars/antiques ).
Replacement value, is the value/cost to buy an equal new replacement item, or items.
I highly recommend it!
Ask me how I know!

 

[GreensvilleJay]

yeesh, maybe go across the street to another insurer ! My homeowner's policy insures my BX23S, replacement cost..as it's under 25HP...it's in the 'fine print' that I actually read 5 years ago.

Crazy thing is I had to buy a new furnace (93% eff) to replace my 97% eff furnace, due to it being 32 years old. What I saved on flipping car,truck + house over bought the new, less efficient furnace in 2 years.

 

[PaulL]

"Replacement value", is the proper term!
Guaranteed value, places a fixed/agreed limit on payout ( good for vintage cars/antiques ).
Replacement value, is the value/cost to buy an equal new replacement item, or items.
I highly recommend it!
Ask me how I know!

In my part of the world, replacement value means one like what you had. If yours is 5 years old, replacement value is the price to buy a 5 year old one. What you describe we'd call a "new for old" policy - if your stuff gets stolen then they buy you a brand new one, even if yours was 10 years old. A policy like that comes at a premium, because any policy that leaves you better off creates quite a bit of moral hazard.....if you accidentally destroy your tractor you get a brand new one!!

 

[fried1765]

In my part of the world, replacement value means one like what you had. If yours is 5 years old, replacement value is the price to buy a 5 year old one. What you describe we'd call a "new for old" policy - if your stuff gets stolen then they buy you a brand new one, even if yours was 10 years old. A policy like that comes at a premium, because any policy that leaves you better off creates quite a bit of moral hazard.....if you accidentally destroy your tractor you get a brand new one!!

"Replacement value", must be very different "down under".
I had a major fire.
"replacement value" replaced all items lost, with NEW items!
Many thousands of USD!

 

[Bmyers]

When we insured our tractor with State Farm, just needed the serial number of the items we wanted to insure, which was the loader, tractor, and mower. Asked us what each item was worth and wrote us an add on to the policy.