Insurance?

[DustyRusty]

Insurance is one of the most misunderstood items that we will ever purchase in our lifetime. Most people never read their insurance policy and just make assumptions as to what is covered and what isn't. It also varies from company to company, state to state, and country to country. When I worked for an insurance adjusting firm, many times we had to get a copy of the policy just to determine if the insured was covered or not, since their policy was issued in their home state, and the accident happened out of the state of their home state. As an example, in their home state, the automobile policy stated like kind and quality of parts, but in the state where the accident occurred, the state would require all new factory parts for repair if the car was under a certain age. When it comes to insurance, there are so many variables to consider, that you are best to ask the questions of your trusted insurance agent. They will know the state rules better than anyone.

 

[Impala]

We have a underwriter on our policy for our tractor. Meets the requirements for Kubota loan and much cheaper. Just only covers it on my property.

 

[fried1765]

Same here. My Ins Agent (State Farm) simply wanted it listed in my Homeowners Policy and that covers it for theft, fire, liability. The only problem is it is also subject to the same deductible as my Homeowners. so if you want any more coverage than that….you’ll want to purchase addt’l insurance.

There also seems to be some inference regarding equipment-failure…and that would be a “warranty” policy… not the same kind of insurance.

ONe more thing…to be covered under homeowners…. the machine is only covered under that policy while it is on the homeowners’ property. If you move it to a friends house to do some work for them…. the policy doesn’t apply.

It is not a particularly good idea to have a homeowners policy with an underlying deductible for contents.
That puts you in the depreciated category, and a tractor, or other items that are burned or stolen, will only be covered for their depreciated value.
In today's market, your tractor value might be sorta OK with depreciated value, but you would take one wicked hit for replacing the contents of your residence.
"Replacement value" coverage is usually not prohibitively expensive.

 

[Daferris]

From a post I made back in August.... Just some notes on how claims are settled and the types of valuations and there meanings....
Insurance guy here...
ACV = Market value I.E what you could buy the tractor for from a private party.
Stated Value = See ACV above this only pays ACV up to the "stated amount".
Agreed value = This is where you have an appraisal for the value and the company and you "agree" on the value that would be paid in the event of a TOTAL LOSS before hand. Partial losses are usually done as ACV however some policies will pay the total amount and take possession of the insured item even with a partial loss.
Replacement cost = Replaces the damaged item with a new one of like kind and quality. Most often it 1st pays the claim as ACV then once the item is replaced (you generally have 180 days to do that it will pay the remaining amount as that's how they know what the true replacement cost is). Again MOST policies have a cap of 400% of what you paid new for the item.
Hope that helps everyone.

Another thing to look for in a Homeowners policy is if it says the tractor is covered when used "Solely" for the repair upkeep of the dwelling. SOLELY is the key word here and it is NOT what you want to see as once you take the tractor off your property it's no longer covered ANYMORE.

 

[GeoHorn]

It is not a particularly good idea to have a homeowners policy with an underlying deductible for contents.
That puts you in the depreciated category, and a tractor, or other items that are burned or stolen, will only be covered for their depreciated value.
In today's market, your tractor value might be sorta OK with depreciated value, but you would take one wicked hit for replacing the contents of your residence.
"Replacement value" coverage is usually not prohibitively expensive.

I’ve actually got some recent experience in this matter.
While away on vacation in VT a pipe failed and flooded the west end of my house. My deductible (3% of home appraised value) was deducted from the insurance check for damages. The value of damages was depreciated due to age…and when the repair is completed (likely next month) another check will be forthcoming to cover the actual cost of repairs.
My library was severely damaged with many out-of-print books ruined. I have listed them and am still working on finding what they sell for on the open market (Checking online auctions andbook-sellers… and in some cases their jackets had their ISBN and original values printed on Title Pages) and another check will be coming when I submit that amount, expected to be in the $5K-$7K range. Antique guns were appraised by a well-known dealer and repairs/restoration costs plus depreciated value due to the restorative process will be paid also.

I’m not unhappy with the insurance coverage…only the process which is time-consuming and, of course, the feelings of loss of treasured items (I’d rather have them as they were than to be paid for them.)

 

[ItBmine]

I’m in the same boat. I’m in Canada. Paid cash for my 2601 and accessories and implements. Also paid cash for a zero turn mower. Im just over 50,000 total. My homeowners covers up to 10,000. Tractor will never leave my property. I checked into additional insurance. For the tractor and mower it’s going to cost me about 45 bucks a month. The tractor alone would be about 20 bucks a month. Insurance would basically cover fire theft and things like a tree falling on it. Wouldn’t cover any stupidity damage I might do like the Kubota insurance would. 20 bucks a month doesn’t seem like much….but I’m kinda tired of paying extra this, extra that, over the many years I have had insurance and haven’t made any claims. I haven’t signed on yet, but I may…

Same here. Paid cash for all my stuff and at the time KTAC wasn't available if you paid cash. Although I think it is now?
But I had all my tractors and ALL implements listed on my homeowners policy for replacement value. Didn't cost that much extra and even though I've never had a loss or a claim it just gives me some piece of mind.
I just had to give them serial numbers for each piece and they are all listed out.

 

[fried1765]

I’ve actually got some recent experience in this matter.
While away on vacation in VT a pipe failed and flooded the west end of my house. My deductible (3% of home appraised value) was deducted from the insurance check for damages. The value of damages was depreciated due to age…and when the repair is completed (likely next month) another check will be forthcoming to cover the actual cost of repairs.
My library was severely damaged with many out-of-print books ruined. I have listed them and am still working on finding what they sell for on the open market (Checking online auctions andbook-sellers… and in some cases their jackets had their ISBN and original values printed on Title Pages) and another check will be coming when I submit that amount, expected to be in the $5K-$7K range. Antique guns were appraised by a well-known dealer and repairs/restoration costs plus depreciated value due to the restorative process will be paid also.

I’m not unhappy with the insurance coverage…only the process which is time-consuming and, of course, the feelings of loss of treasured items (I’d rather have them as they were than to be paid for them.)

I had a $240K "experience" in the matter some years ago.
Replacement value coverage picked every item up at actual replacement cost.
Several high value items I opted to not replace, but negotiated a cash settlement for them.

Example: Garage 9K lb. auto lift would have been almost $5K to replace!
Company agreed to my request to pay me $4K if I opted to NOT replace.
If they had refused to pay me $4K,..... I would have instead replaced for $5K.

 

[GreensvilleJay]

curious, why didn't you get the lift ?
You could have and resold for $4.5k ??