insurance on old tractors & equipment?

wapwap · Aug 7, 2019

I'm a newbie here with a question: What sort of insurance do you carry on your tractors and equipment?

My parents' 1980s era tractor caught fire a few months ago and was badly damaged. I was surprised to learn that the tractor was not covered by any insurance policy. In fact, none of the equipment is insured -- tractor, FEL, baler, etc. It is all old (1972-1995), but nothing truly antique or collectible. My mother believes that it's impossible to buy insurance for old equipment because it has already been "fully depreciated". Is that right?

The farm is no longer an active, money-making enterprise. I'm just trying to maintain my parents' land and keep it in the family for a few more years. Tractors and implements are rarely used, never leave the farm, never travel on roads. We don't need the kind of insurance that covers accidents on roadways. I just want some sort of insurance policy to help pay for repair/replacement if another essential piece of equipment gets damaged.

SVcummins · Aug 7, 2019

I don?t have anything newer than 1979 and it?s all
insured under my farm policy

Jim in rush co · Aug 7, 2019

I have what they call personal articles policy I carry on a few things they are listed individually on the policy for a said amount each. Only claim I have turned was on damage on new JD tractor, no deductible involved agent said have it fixed. Also on list is a 65 year tractor also for a said amount. State Farm insurance.

Jim in rush co · Aug 7, 2019

I should have also added I had added golf cart to farm policy with Farm Bureau and changed it to the personal article policy because not covered off farm, that would not do much good at tractor show and same with the old tractor.

NY 986 · Aug 7, 2019

Depreciated or no longer for profit business does not matter in terms of insurance. Your equipment is insurable for at least fair market value. You would have to inquire with
an insurance agent to see if they will cover for replacement cost. My understanding is that it has gotten very hard to find insurance for replacement cost because of
intentional destruction of insured equipment.

Mike M · Aug 7, 2019

You can insure anything. IIRC Lloyds of London has policies on actress legs. Just a matter of finding a company that will and how much they charge.

rustyfarmall · Aug 7, 2019

I have nothing newer than 1950 and it is all insured.

Tony in SD · Aug 7, 2019

All my equipment is insured. 1948 -2016. Tractors, tillage, planting, balers, loaders, bobcats Gators etc. Even homage stuff is insured. Q

Steve@Advance · Aug 7, 2019

Do you have an agent? Do you trust him/her?

Do you have an insurance company you have been with for a long time, have everything insured through them?

How has your past experience been with them?

These are all things to consider.

If you are an insurance shopper, move from one company to another seeking the best rate, have multiple claims, of have ever been late with a payment, they will likely not want to insure old equipment.

But if you have a good relationship with them, good payment history, clean record, then they will be more willing to take the risk.

However, be sure to get a heads up on what it will pay. Many will be glad to take your money, but only pay market value, which is always way less than replacement value. Sometimes more like scrap value when it comes to old equipment!

Pencil it out carefully. What are the odds of something happening to a piece of equipment? How much will you spend on insurance? Insurance companies are here because they make money, lots of money!

John in Mich · Aug 7, 2019

I have a "blanket" coverage of outbuilding and contents. A premium is based on total value. Years ago I
burned my 1953 Ford NAA, "Jubilee". I had just purchased it 2 weeks before for $1500. Insurance adjuster said value as my lawn mower was $5000. OK! There was also $9000 damage to my garage which was paid less deductable. I settled.

mdm1 · Aug 7, 2019

I went through the insurance deal. I was paying for liability on tractors when they were on public properties. Nothing on the tractor itself. Got a new agent and did some homework. If my tractors are used for the sole purpose of maintaining my property they are covered under my homeowners policy. If being trailed my truck and trailer insurance covers it. But if I take them to a show I would need special coverage. I should state that I am not a farmer and receive no financial consideration for any use of the tractors. They are kept at our cabin.

37chief · Aug 7, 2019

If I had a new tractor I would have it insured. I only have insurance if I damage something with my tractor. If one of my tractors was to burn up. I would just look for another one. Stan

Geo-TH,In · Aug 7, 2019

I carry liability only. Get it from
Indiana Farmers.

tomNE · Aug 7, 2019

insurance in NE will drive you broke for value replacement. it's covered for liability. I never insure anything that the banker didn't insist on and since i
don't have a banker, i don't insure!

JDEM · Aug 7, 2019

I can insure the contents of my barns for anything I want. Insurance costs money though and insurance companies are in business to make
money. I carry no collision insurance or comprehensive on any of my cars and trucks. No insurance on one of my houses and the absolute bare
minimum on the other two houses. I only insure my houses and buildings to get liability insurance and to keep from being sued by someone who
might get hurt.

If I wanted, I can put a value on any tractor I own, reach an "agreed upon value" of each with my home-insurance, and then they are covered.
Up go my insurance payments too.

Russ from MN · Aug 7, 2019

Whether or not it's depreciated out has nothing to do with getting insurance on it. We have our 48 Farmall C insured or it's
estimated value.

JD Dave · Aug 7, 2019

With farm insurance policies you can usually insure your farm equipment for its present value. That means for instance what it would bring at an auction today. I have a lot of older but very good quality
stuff and I've made that arrangement with my insurance company. So my homework is to make a complete list of the equipment, the serial numbers and have good dated photographs of it all. It doesn't hurt to
have a good appraiser in your pocket also.

Traditional Farmer · Aug 7, 2019

I have never insured tractors or equipment other than a liability policy if I was to be in a wreck with one or do damage some way.So after all these years if I lost one somehow I'd still be way ahead money wise.Really with old tractors and equipment not much that burns and how much would insurance really pay on an old tractor anyway?If it was insured for an inflated price the premiums would be thru the roof no doubt.

504 · Aug 7, 2019

I am self insured for everything except liability. On your tractor being insured by your truck and trailer
insurance,I would bet you are only insured for liability. If you have a wreck or the tractor just falls off the
trailer you are out of luck.(Most trailers are not insured against damage either.) Ask you agent what happens if
you hit a bridge with you trailer,most will tell you you need to buy a new trailer. My trailers are insured
against "All Pairles" If my camper is flooded,a tree falls on it,if my brother destroys my flat bed, all are
covered.

Vicinalvictor · Aug 7, 2019

Talk to a Farm Bureau Insurance Agent.

wapwap · Aug 7, 2019

Thank you, everyone! That's a lot of helpful info. I'm relieved to know that it's possible to insure old tractors and equipment. I'll start checking with insurance companies. If I can insure each piece for its fair market value, I'll be very happy.

Liability coverage -- several of you mentioned that. We had no liability insurance when the tractor burned. A hired man was on the tractor bushhogging when the tractor suddenly caught fire. Fortunately, he was not hurt. The fire dept stopped the fire before it spread to any neighbor's land. It could have been a lot worse! I bought liability insurance and fire extinguishers right after that happened.

Bob · Aug 8, 2019

(quoted from post at 13:41:37 08/07/19) I'm a newbie here with a question: What sort of insurance do you carry on your tractors and equipment?

My parents' 1980s era tractor caught fire a few months ago and was badly damaged. I was surprised to learn that the tractor was not covered by any insurance policy. In fact, none of the equipment is insured -- tractor, FEL, baler, etc. It is all old (1972-1995), but nothing truly antique or collectible. My mother believes that it's impossible to buy insurance for old equipment because it has already been "fully depreciated". Is that right?

The farm is no longer an active, money-making enterprise. I'm just trying to maintain my parents' land and keep it in the family for a few more years. Tractors and implements are rarely used, never leave the farm, never travel on roads. We don't need the kind of insurance that covers accidents on roadways. I just want some sort of insurance policy to help pay for repair/replacement if another essential piece of equipment gets damaged.

Liability insurance is a necessary evil, but as far as damage coverage is concerned, I don't insure anything that I don't owe money on that's worth under about $25K.

Insurance is a lot like gambling, the odds are heavily stacked in favor of the "house", IMHO.

insurance on old tractors & equipment?

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