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Tractor Insurance Questions to Ask Your Agent

Many owners assume a homeowner's or farm policy covers their tractor, and some find out otherwise after a loss. Ask your agent specific questions now, and get the answers in writing.

Is your tractor covered under your current policy?

Ask whether your homeowner's, farm or ranch policy covers the tractor, implements, trailers and attachments, and under what conditions. Some policies limit coverage for equipment or treat farm and hobby use differently. Terms vary by company and state.

Ask what is excluded. Common questions include theft, fire, vandalism, weather, rollover, collision and damage while towing or on public roads.

Ask the agent to show you the exact wording in the policy, not just describe it, and keep a copy of the policy and any endorsements in a safe place.

A short walk around your place with the agent, or photos sent by email, helps them see what is actually there.

What kinds of coverage exist?

Ask about property coverage for physical damage and theft, liability coverage for injury or damage to others and whether a separate policy or an endorsement makes sense. Ask what the deductible is and how a claim is valued, whether at replacement cost or depreciated value.

Ask how coverage works for an older machine, one you have modified and one you have financed, since a lender may require specific coverage.

Ask whether coverage is reduced if the machine is stored outdoors, and what security measures the insurer expects, such as locked storage or removing keys.

• Physical damage and theft
• Liability to others
• Replacement versus depreciated value
• Lender requirements

What about liability if someone gets hurt?

Tractors are involved in serious accidents. Ask how liability coverage applies if a visitor, neighbor, hired worker or family member is hurt while around or using the machine. Ask whether anything changes if someone is paid for helping.

Ask about coverage for injuries to hired help, since workers' compensation rules vary by state. Ask what is expected of you regarding training and safety practices.

Ask also what the insurer expects in the way of safety equipment, such as a ROPS and seat belt, and whether it asks about children or guests around machinery. Answers vary by company.

Does coverage apply on roads, rentals and loaned machines?

If you move equipment on public roads, ask how coverage applies during transport, towing and while the machine is on the road. State rules on road use vary, so ask your state DOT or agriculture department as well.

Ask about renting or borrowing equipment, and about lending yours to a neighbor. Coverage may differ, and you want to know before something happens.

If you hire someone to run your tractor or to do custom work on your land, ask what their insurance covers and ask for a certificate showing it.

• Coverage while towing or on roads
• Rented equipment coverage
• Lending to neighbors
• Custom work for others

What documents help with a claim?

Keep purchase receipts, serial numbers, photos of the machine and implements, and records of maintenance and upgrades. Store copies away from the shop, because a fire that destroys the equipment may also destroy the paperwork.

Update your agent when you buy new equipment, add attachments or change how you use the machine. Review your coverage each year.

A written inventory with a short description, serial number and approximate purchase year for each machine and implement makes a claim far easier to prove.

How do you compare policies?

Ask more than one agent, and ask each the same questions. Compare coverage, exclusions, deductibles and conditions, not just the premium. Ask an independent agent who can compare several companies.

Read the policy yourself. Ask the agent to explain any confusing terms and put important answers in an email. This site does not give insurance advice, and policy terms differ.

What mistakes do owners make with equipment insurance?

The common ones are assuming coverage without asking, listing equipment at a value that is too low or too high, forgetting implements and trailers, and not telling the agent about a change in use, such as starting to sell hay or doing custom work for neighbors. Each can lead to a denied or reduced claim.

Another is skipping a review after buying new equipment. A policy written years ago may not reflect what is in your shed today. A short call each year to walk through the list takes minutes and may prevent a surprise.

• Do not assume coverage
• Keep an updated equipment list
• Tell your agent about changes in use

More in Homestead Projects & Money-Saving Know-How

• Keeping Equipment Records for Taxes and Resale
• Teaching Family Members to Use Farm Equipment
• Equipment Checklist for New Land Buyers
• Equipment Planning for a Small Cattle Herd
• Equipment Planning for a Market Garden
• Tractor Projects for Your First Weekend