Insurance pay out what you actually insure for

old horse power · Aug 19, 2014

Is there a insurance company that actually pays what you insure for?
Had a 8010 allis roll and caused cab damage insured it for 25000.00 insurance is only paying 3500.00 don't seem right to me. On a total.

Bruce from Can. · Aug 19, 2014

You had more coverage on the tractor than it was worth. To have received full insured value, you must have the tractor appraised , by someone in the field, only then can you get that kind of money for a "wright off" on a old tractor.It may be worth more to you but, it is only worth "market" value. Insuracne companies don't mind taking your money. It is your agent that should tell you to only insure a item for it's true value,or replacement value, not value you see in it. Bruce

Stephen Newell · Aug 19, 2014

$3500.00 is pretty bad. They usually pay 35 to 40 cents on the dollar. This is why I don't have any insurance other than what the government makes me have.

Traditional Farmer · Aug 19, 2014

Why would you carry that much insurance on an AC
8010 to start with?I'd just insist they get me a replacement in similar condition,hrs etc.

fixerupper · Aug 19, 2014

My neighbor had his loader tractor at the local threshing show, using it for general loader use. Someone got in it and drove it with the parking brake on, completely smoking the brake. Repair bill is estimated at $5000 and his insurance will pay 100 percent of the repair bill. The insurance probably doesn't pay for oil and filts but I'm still impressed. Jim

mkirsch · Aug 19, 2014

There are a couple of insurance companies that provide "agreed value" insurance coverage, but they are for classic cars.

Agreed value coverage means you say, "It's worth $25000" and they charge you for that level of coverage. In the event of a total loss, they write you a check for $25000.

You wouldn't want to know what agreed value coverage would cost on a working farm tractor.

Texasmark1 · Aug 19, 2014

My State Farm Policy has a "Replacement Cost-Similar Construction" Amendment to the Homeowners policy. Number is A1, that keeps you from the depreciation. Part of the premium I pay.

However there is a 1% deductible for any loss in Section 1 which is where the house, out dwellings, personal property, and loss of use are listed. The percentage is based upon the value of the homestead and applies equally to any claim against any of the above listed property.

I don't know if you can pay more out front and have the 1% reduced or deleted. Could ask I guess. I don't know if it applies to all policies or some, like my coverage.

Mark

1130Leo · Aug 19, 2014

This is why I don't bother with insurance on my equipment, they would never cover what it would cost to replace anyways. I take the risk, but I also do not have to shell out high premiums to an insurance company that I know would never compensate me properly in the event of a loss.

old horse power · Aug 19, 2014

I may have given a little more then it was worth but with 1500 hrs and being the year it was I thought OK The banks want insurance on it before you even warm up the seat.
Think I will start looking for ma different insurance company and ask a few more questions instead of going with the agent ~!
Thanks !

ericlb · Aug 19, 2014

other than classic cars which require a independant appraiser skilled in evaluating them to place a dollar value for that vehicle on it, example; 2 ,1969 mustangs, both are nice restored cars, 1 is a 6 cylinder automatic the other is a boss 429 with a 4 speed, obviously the boss has a dramaticly higher value than the other car, even though both may be just as nice apearance wise, for everything else, insurance companies will only pay fair market value, for machinery thats what similer units bring at auction, unless otherwise agreed to in advance, insuring for 25000, just means you probably paid 4 times the preimums to them you had to , id be sure to have its replacement tractor appraised and a value placed on it when you get it to prevent losing again, as well as other insured machinery on your place

MarkWV · Aug 19, 2014

many policies have agent discuss with you the "value" of your equipment and then assign an "insured value". policy typically reads after a covered loss the company will pay actual cash value (market value)up to the insured value. Many agents dont know value of equipment and let the owner put "value" on it, often without researching the market value. Pays to know what it is worth, not necessarily what you would like it to be worth, have seen it happen many times. A good agent will explain that to you up front so there are no misconceptions when a claim is filed. HTH

DoubleR · Aug 19, 2014

I declare the value I want to ins. my tractors for. Don't know about the payout but they want my declared value every time I go over my policies. Then they charge me per hundred.

JMS/.MN · Aug 19, 2014

A friend lost a center pivot in a windstorm a few years ago and the ins company depreciated the unit, then paid the balance. Same thing here last year with $28,000 hail damage- took 50% depreciation off the top, then the deductible. Funny, I pay 100% of the premium......

EricInSEI · Aug 19, 2014

What is the cost to repair it? Or is it totaled? If it was totaled, what would it cost to buy another tractor like it in equal condition? Without knowing these things we have no way to know if the insurance company is making a good offer.

You are not allowed to make a profit collecting on insurance policies. If you bought fire insurance on your house from 3 different companies and then your house burnt down, you would recover one third from each company. It cuts down on fraud. Insurance is supposed to put you back where you were before the accident.

Life insurance is of course different.

EricInSEI · Aug 19, 2014

I need to read three times before I respond, I see you did say totaled.

kyhayman · Aug 19, 2014

Never had any trouble with Kentucky Farm Bureau. Other than depreciation on barn roofs they've paid what it cost to repair/replace or the total loss limits.

504 · Aug 19, 2014

Tractor House has three listed, starting at 3500.00 and gong up to 15,000.00 Just because your insurance co(who is paying an adjuster a bonus to to keep the payout low)offers a low ball check does not mean you have to except it.

old horse power · Aug 19, 2014

15000.00 man I wish I could find one in or around Nebraska for that!
None to be had any more!

oldtanker · Aug 19, 2014

(quoted from post at 22:10:41 08/18/14) Is there a insurance company that actually pays what you insure for?
Had a 8010 allis roll and caused cab damage insured it for 25000.00 insurance is only paying 3500.00 don't seem right to me. On a total.

OK there is a lot you are not saying. Was it MFW? How many hours? ECT ECT.

In most states "betterment" is illegal (that means getting more than something is worth). In other words they are going to go with the market value of the tractor. Doesn't matter what it's insure for. I looked on tractor house and see a couple of 8010's MFW with pretty high ASKING prices and a 2 wheel drive for 3,500.

So, keeping in mind that your agent, not the company, sold you a policy with more coverage than you will receive in payout, you need to establish the actual value of your 8010 ( honest value based on overall condition and hours) then if the company is much off contact your state insurance commission.

Most insurance problems stem from the policy holder not really knowing what they are buying other than insurance and agents looking to make more commission. In a lot of states you don't have to know a lot about insurance to be an agent.

Rick

old horse power · Aug 20, 2014

OK Guys all I'm saying is when your bank or lender on your equipment ask for it to insured for the loan amount and you do. The insurance should at least pay 80% or replacement Value.
I think I found the one everyone is saying cost 3500.00 If you look again it is in a salvage yard!

1948CaseVAI · Aug 20, 2014

The system is designed to try to keep anyone from making a profit on insurance. Some people do by using repairers who will eat the deductible etc, but in general you cannot profit from your loss. Your volunteer hours spent on the labor of love on your tractor also do not count. The value is what it is unless you have had an appraisal that documents what and why it is "special" and why it is worth more than the common value.

Just because you bought a $25K policy on something worth less doesn't mean you can get $25k in case of loss. If that were the case there would never again be an auction

NNP · Aug 20, 2014

(quoted from post at 05:51:24 08/19/14)
My State Farm Policy has a "Replacement Cost-Similar Construction" Amendment to the Homeowners policy. Number is A1, that keeps you from the depreciation. Part of the premium I pay.

This is the amendment I use too. more expensive but worth it IMO. I told my agent, If I lose what I have, I want the same thing sitting there when we are done.
Brother has the same and he lost his garage to fire.
Taking months to review everything, piece by piece, but his Ins Co is standing behind him.
Example: he hauled the burned carcass of his restored early 70's garden tractor to a dealer. A $999 modern box store mower is not the same machine. He is getting a replacement garden TRACTOR that costs considerably more because of that amendment.
Good company with a good agent that is pretty much doing it all for him.

Insurance pay out what you actually insure for

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