Insurance on engines and tractors?

[Mark Thompson]

What do you guys/ladies do for insurance on your engines and tractors?

I was talking to my insurance agent today concerning insurance on my engines and tractors. And as I understand it, If you think your homeowners insurance will cover them, you are probably wrong.

She said that since they are antiques and cannot be easily replaced, she said they are not insured under my home owners policy. Surprise!

She said that she must secure a policy with a underwriter that specializes in heirlooms, wine collections and other un-replaceable things.

The reason I got to thinking about this is not so much from fire ot theft, but what happens if I get in a traffic accident and lose or severely damage an engine or tractor.

A few years ago, a guy lost his beautiful Rumely 30-60E Heavyweight when the tractor slid off the haulers trailer. Almost every casting on the tractor was broken or cracked. Insurance did not cover a thing. A hired hauler must have special insurance added to their policy as normal cargo insurance will not cover antique equipment..period. Good idea to check your clubs haulers insurance as most all of policies state that antique equipment will not be covered.

What have you done to insure against the worst scenario or do you not worry about it?

-Mark Thompson

 

[Tom Winland]

I've asked my homeowners insurance about it and they always say they are going to look into and get back with me what kind of policy I need, but I have yet to ever hear anything back from them. Guess it's time to follow up with them again.

Tom Winland Ohio

 

[roger kirschenman]

what is ane antique? Any thing that is 100 years old or older. So keep the word antique out of the polacy.

 

[Craig Anderson]

That type of coverage is called "inland marine" and costs a fortune! Half the insured value of your homeowners' policy will cover contents. Jack up the insurance on your house and/or out buildings as high as your agent will allow and TAKE PICTURES so you have proof. Craig

 

[John Hammink]

I have an extra on my homeowners insurance for the engine shed for theft and fire ( the fire has to come from the out side ) and they don't pay me more than $20.000 max.

It's the same for the antiques and acient art objects in the house, you have to pay extra for it and they want pictures and specifications.

At shows I have insurance for $2.500.000.00 when something happens through my engines ( for example a flywheel flies into the crowd ) but when someone tries to stop a flywheel by hand on a running engine it's his own responsibility.

On the road, I have nothing for my engines and trailer when I lost them, will cost you a fortune and you have to fill out a form for every single trip.

"Sixm" John

 

[Ken Majeski]

Well as far as my Steam Engines and Tractors go I have the Higher Buck ones listed on my Farm policy at only partial value. Anything of much value Has to be listed on the policy. As far as Gas Engines go I don't have much on them. After all if you insure all this stuff at full value it will cost you a small fortune. I believe all insurance companys are in bussiness to Make Money and That They Will. It is just a matter of Risk and how much of it are you willing to take. We have probably stumbled on the reason many nice items aren't seen at shows any more. And Yes, I have placed some of my property on poorly equiped trailers with questionable drivers but this don't happen as much as it used to. I haul my small (14,000 pound) Steam Engine around behind my Pickup truck and feel safer than I did when I was behind my larger one at 75 mph on the freeway. Some of these guys figure they are like a D-7 Cat and if it falls off the trailer you just drive it back on and go. Seems some of the shows shop around for Cheep truckers... Been there before also.....

 

[Rodney Fritz]

My local insurance agent insures my tractor and engines at whatever dollar price I set. I insure them for whatever their going value is and right now I am carrying over $20,000 insurance on my toys. That way if something catastrophic happens with traffic or fire or storm - since I live in a tornado alley - I will atleast have some money to buy something to replace them.

 

[Ken Majeski]

Well Rodney thats all fine But.... The last Rumely F I seen sell went for over 30,000 and it didn't even run, add a couple more Rumely's at 12 to 14,000 and a couple Steam engines at 12 to 14,000 and a few Gas Engines at 500 to 7,000 and you Soon Can't Afford it... Barring Falling off the trailer on the Freeway there isn't much that can happen to them that will completely destroy them so I have elected to take some risk. It isn't like there a matter of life or death, Just a Hobby and all Hobbies have their risks... Look what happened to the Stock Market...

 

[Craig Anderson]

I, and I'm sure many others, would be interested in knowing what this $20,000 of ADDITIONAL coverage is costing. I've priced Inland Marine, I'll take my chances. Craig

 

[Ironman]

Ok guys- I'm going to write a small book here. Insurance is a lot like cell phone packages. One company offers lower rates, but when you read all that small print, paying their so-called lower rates will most likely cost you more in the long run. My wife is an underwriter for a very well known insurance company. We (of course) have our personal insurance through that company. I have not purchased any "special" policy to cover my engine collection, because my engines ARE covered through my homeowner policy. Even though I rent storage for them away from my home, they are still covered as "personal belongings" under my policy. It doesn't matter that they are antiques or hard to replace. You can, in most cases, set an amount of coverage for your personal belongings. I believe it is referred to as "Stated Amount". Sure, it will cost you a little bit extra, but it really isn't that bad. Your best bet is to try and contact your insurance COMPANY (not your agent) to find out what they will and will not cover. Of course, take a look at your policy first to see if you can decipher it for yourself. In most cases, insurance agents don't really know as much as you think they do. AND- if they can con you into buying extra insurance that you don't really need, it's more money in their pocket. Every company has different "rules" on their policies, so take a good look at the policy you have. You might be in for a big shock as to what you ARE and what you are NOT covered for. The local airport here is owned by the city. The hangars are owned by the city, and the city leases out the hangars to aircraft owners. My personal items that I have in my hangar are covered under my homeowners policy, but my property and casualty insurance company does not insure aircraft, therefore the need to purchase aircraft insurance through another company. You guys think auto, home, and insurance for engines is expensive?...believe me, it's cheap compared to airplane insurance!!!

 

[CJ Winslow]

The definition of antique varies depending on what you are talking about. I have always taken the definition of motorized antiques to be a 25 year mark. In Connecticut when your vehicle turns 25 years old you are eligible for "Antique Plates" In reality there is no set mark as to what an antique is or isn't.

CJ

 

[Tony Leonard]

I had this conversation with my S.F. Insurance man about 2 years ago and he said that all my toys are covered under the Homeowners/buildings & structures/contents section. I have a stated amount for this on my policy and it is more than enough to cover my small collection including the buildings. Theft is also covered on anything outside on my property locked up or not. His quote was "Locks are for doors, not for tractors". I do keep my engines, lawn mowers and 4 wheelers locked up to prevent a wanna-be thief from being tempted.

I reckon there could be an "old fashioned hanging" if I ever need to use my insurance and I was mislead by my insurance man.

Thanks for starting this thread Mark, it is a good idea for every collector to know their insurance coverage.

Y'all be careful!!!

Tony Leonard

Rockwell, NC

 

[Charlie]

Ironman, That's interesting to know!! I have asked my insurance man in the past about the home owners policy covering my engines & was told that I had to buy another policy. If I wanted coverage on the road, I needed to buy trip insurance. The quote that I got was approximately 10% of the value of the engine. That was for 1,000 mi & if the trip was farther it would be more yet! I told him that I apologize if I look stupid!!! I figured I'd take my chances on my own, as the trailer insurance took care of the liability. I'll do a little checking with the company. If it turns out there may be another way, I may ether get another agent or wring this ones neck!! Thanks for the insight, Charlie " THANKS HARRY"

 

[Franz]

Since I've warred with Harry in the past over this subject, as well as others, I'm being VERY good here. Ironman is 100% on the money in everything he has said. Most insurance Agents knowledge of insurance ends with the percentage of premium their comission is, and since they have to justify their agent loss ratio, agents LOVE selling Inland Marine coverage. READ your homeowners policy! Most states now require plain language, so policys are a lot more readable than they were. NEVER accept the first answer from a carrier, unless you are completely satisfied with that answer. Your Agent doesn't work for you, and he will sacrifice you in a heartbeat to protect his relationship with a carrier, that's where his income comes from. Any agent who tells you the only way he can cover you is with Inland Marine has just told you that you NEED a new Agent. Quick test to determine how good an Agent is; Ask who reinsures the policy you are about to buy. A competant agent can answer the question, and the correct answer will be another insurance company. Any agent who cannot answer that question is wasting your time, and probably NOT selling you the correct product. Disclaimer: I have bought insurance, worked for Insurance Carriers, and investigative agencys that delicense insurance Agents, as well as investigate insurance fraud. I am probably alot more conversant with Insurance than the average person, and well aware that under NY State Law, an individual can defraud a carrier, but a carrier cannot defraud an individual.

Harry, I hope that was polite enough we don't have to go to war again.

 

[Dick Hamilton]

Yeh, but the stock market wasn't my hobby, it was part of my retirement income. I still gamble on my old iron, that isn't part of my retirement income. Oh well, we're still living and paying our bills. It just cut down on my hobby funds. Dick in the cold, cold Finger Lake region of NY

 

[Harry]

Since my name was mentioned, I will have to appear.

The war Franz is referring to was between himself and another unnamed individual. I was the moderator.

That was Franz' introduction to SmokStak and it was a few years ago. Since then, Franz has demonstrated his friendship and knowledge many times on this board and the SparkArcs board.

It appears Franz may have the background to be informational and maybe confrontational on the subject matter at hand.

 

[Kevin Bandy]

My local insurance agent tells me that at home, my homeowners insurance covers me. When I'm at a show, my homeowners insurance covers me. The only time that I am not covered is while I am in transit. And then, my auto insurance will cover the trailer, but not what I'm hauling.

 

[Craig Anderson]

Let's say you have a $100,000 homeowners policy. The policy will automatically cover "contents" for half the face value of the policy unless you have very expensive "replacement value" coverage. In the event of a TOTAL loss you will get $50,000 to either refurnish your house or your shed. The insurer won't care if you buy plasma TV's or engines. To them, contents is contents, which is why I said earlier, jack up the insurance on your house as high as your agent will allow. In the long run it's still the cheapest way to protect yourself. And don't underestimate what your auto policy will cover either. Auto policies cover many things you wouldn't even THINK of!!

 

[allen lapage]

A few years back I was involved in A crash while pulling my trailer, I also was under the impression that the trailer was covered while being pulled by my insured vehicle. I WAS WRONG. But the contence was covered by my home owners for up to 10% of the value of my policy. I now have A new trailer and A seprate policy on it. Each insurance company may be different, I have FARMERS ins. and that was the bottom line.

 

[Al]

I go for the company who insures the whole ball game. Home owners, auto, property liability, everything. I also do it for the business. If my car gets into trouble on my property, who pays? Let the insurance company decide. If an employee gets hurt driving my truck, who pays? Workman comp or auto insurance, let them decide. I do not like finger pointing about who may be responsible. If you ever have problems from an insurance company it will probably be finger pointing. Al Hettich