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Discussion in 'Hustler Turf Equip (Archived)' started by cward76, Mar 29, 2006.
About what should I expect to pay for replacement insurance on my new SZ 28/60. Thanks
That is going to vary so much between insurance companies, I could not possibly give you a answer.
I would call many and get quotes, and I would also use FULL MSRP as replacement value, just in case you need it.... MSRP on your unit is $11,399.00
$ 51.00 per year on a machine i put $ 6400.00 into. if it helps.
Don't insure it for MSRP you will never have to pay MSRP. You will be spending to much for the ins. I never understood why manufactures came up with the MSRP $ its almost always alot more than the dealers are selling the product for.
Always insure for MSRP as Insurance will pay you the used value on your machine. I thought that they would pay what I had listed it for on the policy. That is not the case! They will pay you used value, not true replacement value. I had a friend who had some equipment stolen and he thought oh great new machines! WRONG! They paid him about 65% of what the equipment cost him which is what he had its value listed at on the policy. If he had listed it at MSRP he would have received about 90% of what it actually cost him. For the record the equipment was about a year old. The equipment listed for right at $22,000. He paid just under $16,000 for all of it which is what he listed the value at on the policy. He received $1042?. for it. The agent told him had he listed it at the list price he would have received $14,300 for his claim. The other problem you face is that even if you list it at MSRP and you have a claim some insurance companies will actually call several sellers of whatever you lost to find an average cost new to base their payout on. Lucky for me I talked with my agent to find out what the payout would be if something happened to my equipment. I am now better educated in the world of inland marine insurance and the coverage and payout. I raise all my coverage on all my equipment, even with the increased coverage if I lost it all I would not be able to replace everything in the next year with what they would pay.
I was quoted $325 per year for insurance on a new Z- 23/60 and a 98 Kubota L2500. My home owners ins. covers these as long as they stay on my property but I wanted coverage for trailering to and from neighbors, friends, repair shop, etc. This sounds awfully high. Any suggestions?
Some of the differences in coverage and valuations you are talking about have to do with "Actual Cash Value" versus "Replacement Cost". Actual cash value takes depreciation into account whereas replacement cost will pay the amount needed to replace the item with a new one.
I was told by both of my insurance agents that there are not any insurance companies that provide replacement coverage on inland marine policies.
There are companies that will insure equipment for "replacement cost". There may be some general rules that apply. For example, you may only get it on equipment less than 10 years old. It takes a special endorsement. Most inland marine policies are for "actual cash value" and don't become "replacement cost" just by increasing the limit of coverage. If you want "replacement cost" you need to ask your agent to cover it that way and you will have to cover it for the amount needed.
My point was to make sure you know what you are getting because the original agent that set up my insurance told me that it covered actual replacement cost then a while back I asked several questions in regards to my equipment coverage and then they told me how it only covered "current value of the used equipment if it were for sale at a dealer". I checked into replacement insurance and was told that between all 3 of the agencies that none of the more than 18 lines that they represent including surplus lines offer replacement insurance. I was told that there was one that would on things like tractors but not lawn equipment. One of my agents called another agency that they refer people to when they can't help them and they were told that there are none in Oregon and that there were few nationwide. I was aware that there was such a thing as replacement cost insurance. I was unaware based on the 3 agencies that I deal with that it was available on lawn equipment. Can anyone tell me the name of any of the companies that it is available through since my agencies are all apparently not able to figure it out?