Important KTAC Insurance Update

[ACDII]

I discovered something the other day, thought I would mention it here since its the topic. I got a notice from Norton regarding a new account on my CR. It was the Kubota financing for the L4060. When I looked it states the balance on the account. Apparently the KTAC is not part of the balance or payoff. I guess when you pay off the loan, you only payoff the tractor, not the residual on KTAC. As someone else mentioned, I guess once financing is done, whether early payoff, or sold, the KTAC policy expires.

I'm guessing if you were to cancel the KTAC while financed, your monthly payment would be the same, KTAC would refund the difference, but then the balance would change to the full amount left? Wonder how that would work.

I carry a rider policy on my home owners insurance for replacement of my zero turn if lost, stolen, or totalled. Granted, won't cover repairs. But at least I can get another one. And it's about 1/4 the price of what KTAC was.

My 16ft landscape trailer is covered under my auto policy for theft and damages. That wasn't much either.

Once the tractor is paid off, my HO would be around $153 a year. It would cover theft, fire and weather, but nothing more. At least while being financed, the KTAC acts as GAP for the first couple years too, something you wont get with HO.

 

[Daren Todd]

I discovered something the other day, thought I would mention it here since its the topic. I got a notice from Norton regarding a new account on my CR. It was the Kubota financing for the L4060. When I looked it states the balance on the account. Apparently the KTAC is not part of the balance or payoff. I guess when you pay off the loan, you only payoff the tractor, not the residual on KTAC. As someone else mentioned, I guess once financing is done, whether early payoff, or sold, the KTAC policy expires.

I'm guessing if you were to cancel the KTAC while financed, your monthly payment would be the same, KTAC would refund the difference, but then the balance would change to the full amount left? Wonder how that would work.




Once the tractor is paid off, my HO would be around $153 a year. It would cover theft, fire and weather, but nothing more. At least while being financed, the KTAC acts as GAP for the first couple years too, something you wont get with HO.

Yes, once it's paid off KTAC will contact you to see if you want to continue coverage with them, and the price for a yearly policy.

You will get a refund from financing for the balance of the KTAC policy that you put into effect on purchasing if you pay it off early, since you technically paid for the insurance up front for the duration of the loan.

 

[atitus]

So to the OP.. interesting that this was a change for you especially on older tractor. I didn't finance mine through Kubota (in 2018) and so I could not get a full replacement policy, only the cash value. Im going to get our my documents and check, but I'm pretty sure mine has always been the value-at-time-of-loss type.

 

[ScottHam]

I'm in the process of buying a new L3560LE. I am not financing. I started researching KTAC, and found on their website that they clearly indicate that the replacement value is only for tractors/implements financed through Kubota Credit. Since I am paying cash, I would only be able to get "actual cash value" replacement cost as described above. Accordingly, I plan to speak with my homeowners policy agent regarding a rider and also consider shopping around for equivalent coverage before making any decisions re: KTAC.

 

[DustyRusty]

The ACV change just happened to my Homeowners policy, with a new endorsement. The original policy stated full replacement value, and the new policy that will go into effect sometime in September is ACV less depreciation. I do have a "Premier" rider that gives me 50% additional coverage, so the agent has told me that this should cover any loss that I might incur. Personally, I don't agree with that statement. A few years ago during a lightning storm, our home was hit by lightning, which blew out the electronics in 6 Casablanca fans and our Sub Zero refrigerator. The insurance company paid for the repair of the fans in full, and the replacement of the refrigerator with the custom wood door panels less a $700 deductible. That refrigerator was 23 years old, and functioned perfectly, however, it was R12 refrigerant, which is no longer used, necessitating its replacement. I informed the agent that if that were to happen after the new policy takes effect, its value along with depreciation, would have been 0 dollars, and they would pay me nothing. She told me that it still would be fully replaced under the new policy. I asked for her "opinion" in writing, and to date, I am still waiting.