Learn about Duliban’s Tractor Protect Insurance for your tractor needs in Ontario, New Brunswick, Nova Scotia and PEI.” December, 2 2021
If you own a hobby farm or just own a decent amount of land, you may not think twice about tractor insurance on your equipment, especially if you have homeowners’ insurance. Although most individuals understand the importance of insurance, hobby farmers may assume that their homeowners’ policy is sufficient to protect their equipment or any liability that may arise from using that equipment. Home insurance will typically cover vehicles used to service your yard, right?
While this is true to an extent, you may want to consider insuring your equipment separately, specifically your tractor. Read on for the implications of not having a tractor insured and the benefits of insuring it through Tractor Protect.
Homeowners’ Insurance, What is and isn’t Covered
Your hobby farm might not be your primary source of income, but that does not necessarily mean you are fully protected under your standard homeowners’ insurance policy. There can be some significant coverage gaps, especially related to your farming equipment, such as your tractor.
To fully understand these gaps, you must first look at what you are covered under a standard home policy.
Personal Property
Under some home insurance policies, a tractor would be considered a “motor vehicle,” which means you would be covered if you are servicing your property. Some other insurance companies put a limit on horsepower to determine whether a tractor would be covered. In most cases, the typical limit is about 25 to 30 HP.
At first glance, these might not seem like issues you need to address. However, consider these common scenarios. If you are helping a neighbor plow their driveway, for example. Or if your tractor exceeds the horsepower limit specified in the contract.
In both of these examples, your homeowners’ insurance would not cover damage to your tractor. This means that you would be responsible for any repair or replacement of your equipment. Since tractors can cost upwards of $20,000 with any added attachments, this can be a significant expense.
Some insurers will allow you to schedule your tractor for a specified amount. But these special riders on your homeowners’ policy can be expensive and still provide limited coverage.
Perils Insured
Even if you own a tractor that meets the horsepower requirements and you only use it to service your property, there are still some coverage gaps that exist. Specifically, as it relates to the perils or events for which you would be covered. For example, most home insurance policies will cover you for named perils such as fire, wind, lightning, and theft. If an event is not specifically listed, then it is excluded.
On a specialized policy, like Tractor Protect, you would be covered on an all-risk basis. All-risk is essentially the opposite of named perils. It means that you would be covered for anything that could potentially happen to your tractor unless specifically excluded in the contract. This coverage is far broader than the coverage offered by a standard homeowners’ policy.
Liability
While you should always be following the laws specific to your location, accidents can happen. In addition to being responsible for any damage to your tractor because of these accidents, you may also be responsible for any bodily injury or property damage you cause.
Like the personal property limitations, a homeowners insurance policy may also limit liability coverage for tractors with a certain horsepower. This means that if your tractor exceeds the horsepower limit specified, you will have to pay out of pocket for any losses incurred. Liability losses have the potential to be even more financially devastating since lawsuits for bodily injury can often be hundreds of thousands of dollars, especially if the injuries sustained are fatal.
Farm Insurance and What it Covers
Since homeowners’ insurance leaves some gaps in coverage when it comes to farming and farm equipment, when should hobby farmers look into farm insurance? Farm insurance can be customized to fit your needs but is typically purchased for individuals whose primary source of income comes from their farming. It covers your home, barns, and farm equipment and can also protect you from liability arising from your farming activities.
Depending on the type of farm you run, and whether you are selling the byproducts or not, you may not need this type of coverage. A farmer who is not selling any goods and is just living off their land, for example, may not need a farm insurance policy. Farm insurance can also provide loss of income, which is most beneficial to those who have no other source of income. For those with land and a tractor to insure, farm insurance may not be needed.
What is Tractor Protect Insurance
If you live in the Ontario area and you have a hobby farm, Duliban’s Tractor Protect may be the perfect solution for you. As long as you are using your tractor for personal use only and valued at less than $80,000, you may be eligible for this specialized policy to cover your tractor. Not only does Tractor Protect provide coverage for the potential gaps that exist in the homeowners’ policy, but it also offers the option to add even more coverage. Often at a price less than insuring your tractor through your homeowners’ insurance.
Tractor Protect is a completely separate policy from your homeowners’ insurance, which is a huge benefit. Any claims you file will be separate from your home policy, so if you do have to file a claim on the Tractor Protect policy, you will not lose any claim-free discounts you may have earned on your homeowners’ policy.
You also do not need to worry about your home insurer canceling your policy!
How Do I Learn More?
To learn more about Tractor Protect and whether it is the best option for you, contact the experts at Duliban Insurance Brokers. With their decades of insurance experience in Ontario, these licensed professionals can assess what coverage is best for your needs.
Click here for more information or to get a quote on Tractor Protect today
