Insuring owned turf equipment with Liabilty insurance co. Cancel The title field is required!

1. Andrew Bucceri

   

   3 posts
   
   2/12/2016 12:02 PM

   I am owner and G.C. superintendent of a 9-hole regulation-length course that buys our turf equipment and does not lease anything. We think we may be paying too much each year on our premium for all the machines that we have owned over 5 years. The guideline of the liability insurance company is that they will pay replacement value in the event of loss on anything OWNED under 5 years. Everything else over that 5 year time period is a cash payment.
   
   My question here is how do i go about finding out what the CASH value is on all the machines that we have owned over 5 years?? Is there a website where I could enter each model or serial # to find out it's cash value?? is there something like a kelly blue-book valuation tool for cars??
   
   Andrew Bucceri
   Hamilton Trails Golf Club
   Mays Landing, NJ

   
   
   
   
2. Andy Jorgensen

   

   1 posts
   
   2/12/2016 1:02 PM

   The best method is look through a used dealer's website. The remaining value may not be that much on a 5 year old piece of equipment, but these website will provide a starting point for negotiations. Of course, frequent documentation of the equipment condition, especially hours of use) will help back-up your argument. For instance, your 5 year old mower may have half the hours as one being sold in Florida, and therefore the argument of use vs. age can come into light.
   
   I was buying a used mower last year from a non-profit and they had to prove the mower's value to their board. We found roughly 8-10 similar mowers for sale and agreed on a middle of the road price. I'm sure this method is suitable for an insurance company as well.
   
   http://www.wescoturf.com
   http://www.statewideturfequipment.com
   http://www.globalturfequipment.com
   http://www.cutteronline.com
   http://www.jacobsentrader.com

   
   
   
   
3. Steven Scott

   

   0 posts
   
   2/12/2016 2:02 PM

   I think that is about the only method of placing a value on turf equipment. Tractors have a book similar to Kelley Blue Book or NADA, but for specialized pieces like what we all use the only thing you can do is compare it to what else is on the market. I'm in the same boat as you, Andrew B., as far as purchasing all of our equipment rather than leasing. Until last year we never bought a piece of equipment that was less than 5 years old when it rolled off the truck, so we had to come up with approximate values for both the bank and for insurance purposes.

   
   
   
   
4. Joshua Sawyer

   

   0 posts
   
   2/15/2016 12:02 PM

   At the end of major lease packages, the equipment will have a fair market value. In my mind, you should be able to contact either manufacturers or local distributors to define the fair market value of existing equipment you own, similar to the process of identifying the fair market value coming off lease.