As a tractor owner, you may be wondering if your tractor is covered by homeowners insurance. Do I need to purchase additional tractor insurance? Does homeowners insurance cover a tractor? Yes and no. Let’s explore the details of tractor insurance in Tennessee.
Just a note…
It is important to note that tractor insurance may not be included in your homeowner’s policy or may have limitations. You should carefully review the terms of your insurance policy and speak with your agent about how coverage applies to your situation. Keep in mind this blog post is speaking in generalities.
Let’s talk coverage…
Tractors come in all shapes, sizes, and brands such as John Deere, Massey Ferguson, Kubota, New Holland, and Mahindra – just to name a few. Your home policy covers your personal property – but has an exclusion for vehicles. So – is a tractor a vehicle?
Vehicles are explicitly excluded from homeowners insurance EXCEPT those that are used exclusively for maintaining your premises. So if your tractor is;
- Used to maintain your premises.
- 100% personally used.
- Your desired coverage is less than 10% of your total personal property coverage limit.
- No on-road use.
Then yes – your home insurance will cover your tractor. It falls under personal property coverage and is subject to your home insurance deductible.
Depending on what type of home policy you have (HO3/HO5) depends on what losses would be covered. HO3 forms (what 95% of you have) limit coverage for personal property to the name perils listed in your policy.
So if that tractor falls off your trailer or something crazy like that – probably not covered by an HO3 because “falling off a trailer” is not a named peril.
If you have an HO5, personal property coverage is much broader. It’s written so that all perils (types of loss) are covered except those specifically excluded. So falling off the trailer is not excluded – so you’d probably have coverage in the above example.
If any of the checklist items above don’t apply – you need to have a conversation with your agent about scheduling that tractor / obtaining a policy specifically for the tractor.
Does homeowners insurance cover a tractor?
The answer is maybe.