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Does my homeowner’s insurance policy cover my compact tractor?

Sub-compact/Compact/Utility/Estate Tractors are one of the most popular and fastest selling products in the Farm Equipment sales industry. Whatever label you put on them, they typically range in horsepower from 25 to 60 or higher and can range in purchase price from $15,000 to $60,000 or more.

Most of these tractors fall outside the coverage of your regular homeowner insurance policy. This gap in coverage can lead to expensive replacements or repairs without the proper coverage.

Many homeowner insurance policies have horsepower restrictions limiting coverage for lawn mowers and garden tractors up to only 25hp or 30hp. Even that older used tractor you bought to blow snow from your lane way can exceed the horsepower limitations under a typical home insurance policy.

To the left is a John Deere 2720, 30.5hp, replacement value with attachments ~$32, 0000. To the right a John Deere x300 lawn tractor, 17hp, replacement value ~$4000.

In addition some policies often have a monetary limit, which includes attachments and accessories, some as low as $5,000, depending on the insurance carrier.

With the cost of the Tractor itself, and add in the usual accessories and attachments; mower deck, bucket, snow blower, backhoe, you have quite a bit of money tied up in caring for your property. The investment you just made to blow snow from your driveway, cut your grass, haul wood or till your garden may not be insured under your homeowner’s insurance policy if stolen, damaged or destroyed.

Even if your tractor falls under the horsepower limitations, you may get a surprise when you discover you are not able to recover the full value you would expect in the event of loss or damage.

What is personal liability are you covered?

You should as well be aware that personal liability insurance coverage in a homeowner insurance policy is often not afforded if you are the owner or are operating a lawn mower or garden tractor greater than 25-30 horsepower. 

If you cause property damage to another, or heaven forbid cause injury to another, you would be paying the resulting damage out of your own pocket.

You would be personally exposed for something as simple as causing damage to the neighbor’s car while sweeping stones to something as horrific as a catastrophic injury from a tractor roll over.

  

How do you get insurance coverage for your compact tractor?

You will find if you were to contact your insurance broker or advisor to ask for coverage, the majority of home insurers would either not provide the coverage, or would sell you an endorsement at a very high additional cost. This is because most homeowner insurance companies are looking to attract the urban market and provide coverage for property usual to such a household.

What these insurers do not contemplate is the increase in rural lifestyles in Ontario, and the inherent need of these property owners to buy equipment to care for their properties. It is simply not the market or clientele they are aiming at.

There is a way to protect yourself and your asset. Contact your insurance broker or advisor to find out if your tractor is provided coverage, and learn whether there are any horsepower or monetary limits in the policy for such equipment.

If you are not provided insurance coverage, ask for a quote from your current property insurance provider.  Compare the coverage and price you can get with Tractor Protect.  

This solution is offered throughout Ontario by Duliban Insurance Brokers of the Niagara Region and underwritten by Trillium Mutual Insurance of Listowel, Ontario. Together these companies have over 200 years of farm related insurance experience.

Tractor Protect provides a comprehensive all risk policy designed for tractors, their equipment and accessories. There are no horsepower limitations or restrictions, and you can get coverage up to $80,000 on a replacement cost basis if your unit is 5 years or newer. You are also provided the peace of mind of $2 million in personal liability coverage specific to the use and operation of your tractor.

The interpretation of horsepower and values are removed and your investment and financial well-being is secure.

Through the Tractor Protect website in less than two minutes the policy can be:

  • Quoted
  • Purchased and Paid for
  • Policy documents sent immediately to your email

The last thing anyone wants is to find out after the fact that they did not have the right policy for their needs. Nobody ever plans for things to go wrong but when they do, you will be happy to have the proper coverage.

Mike Virley

VP Member Services

Trillium Mutual Insurance


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