| Here is a brief summary of the most common types of insurance covering horses.
Most of the coverages are limited to horses younger than about 15 to 20 years old. Mortality:
Mortality coverage is provided for death as a result of accident, injury, illness, humane
destruction, and transportation and also includes loss or death as a result of theft.
Premium rates are based on the horse's use, breed and age, generally about 3% of value.
Some Mortality policies also cover colic surgery, up to a specified amount.
Determining the value of a horse is often based on his purchase price plus costs. You
can include the cost to have him shipped to your home and the cost of a commission to your
purchasing agent. However costs for a horseshoer or veterinarian, for sales tax or import
duties, and other similar costs are not included. A horse's valuation may be changed up or
down at the time of renewal. You may need to provide show or race or breeding records or
perhaps an appraisal.
Major Medical and Surgical:
Usually a supplement to Mortality insurance. Includes any procedure other than maintenance
(such as shots, worming, etc.). Payment is subject to a deductible amount. Common amounts
are $7500 to $10,000 with annual premiums of approximately $150 to 250 per horse.
Surgical Only:
Usually a supplement to Mortality insurance. Coverage is for the cost of surgery and after
care (up to twice the amount of the actual surgery). The most common amount is about $5000
total per year with an annual premium of approximately $100 per horse.
Loss of Use:
Usually a supplement to Mortality insurance. Applies to accident, illness and/or disease.
Annual x-rays are often required. Coverage applies only for a condition that renders the
horse or animal unfit for use permanently. Will usually pay 50 to 75% of the Mortality
policy.
Loss of Use - Accidental:
Lower premium cost than regular Loss of Use, but limited to an accident that renders your
horse permanently no longer able to perform its insured function as a result of a visible,
external, accidental and violent injury. Will usually pay between 50 to 60% of the
Mortality policy.
Trip Transit:
Mortality coverage is extended to include international travel to and from approved
countries. Usually requires a notification to the insurance company prior to travel.
Premiums are about 0.5% one-way and 1% for round trip.
Stallion Infertility:
Breeding stallions can be insured against permanent infertility due to accident, illness,
or disease. Generally a supplement to Mortality coverage and in the case of permanent
infertility, impotence, or inability to service mares it will pay 100% due under the
Mortality policy. The insurance company usually has the right to take the stallion if they
pay on this policy. Annual premiums are about 0.5 to 2% of the insured value.
Coverage is generally not available for stallions in their first breeding season,
although some companies may provide a Congenital Infertility extension. This covers
only the first season at stud and should be in addition to a policy covering accident,
illness, or disease.
Prospective Foal Insurance:
You are covered in the event an unborn foal is aborted, stillborn or dies because of
the death of the mare. If the foal is born alive, coverage is provided against death
caused by accident, illness, injury or disease for the first 24 hours. Coverage can be
extended for additional time at an additional charge.
Here is a brief summary of the most common types of insurance covering people who own,
train, or care for horses.
Liability:
You are covered for sums judged against you in the case of either negligence on your part
or the part of your employee. This includes the cost of your legal defense. This coverage
is available for instructors, trainers, riding academies, public stables, carriage rides,
and clinics.
Farm and Ranch or Farm owners:
You are covered against liability if someone is injured on your property or if your horse
escapes and causes damage to someone else's property. Your regular homeowner's (or
tenant's) policy may cover you if your horses are not "commercial" in any way.
However if you take in even a single boarder, even if they don't pay you money, you may
not be covered by this policy. You are also at risk if you give riding lessons, show or
race your horses and deduct the expenses, stand a stallion to the public, or breed your
mares and sell the foals. Be sure to check with your insurance agent for clarification. By
the way, your homeowner's policy is probably not deductible on your income tax form, but a
Farm and Ranch policy may be deductible as a business expense. Check with your
professional tax preparer or accountant.
Care, Custody and Control (Bailee Liability):
You are covered for sums judged against you in the case of either negligence on your part
or the part of your employee, or an accident (death or injury) that occurs while an animal
is in your care, custody or control. This will also cover transporting someone else's
horse in your trailer to a show or trail ride.
If you have any questions about insurance or your coverage, the best time to check is NOW.
Don't assume you are covered because you may be in for a nasty shock if something happens.
Read your policy (preferably before you buy it) and let your agent know about your horses
and horse activities. You may also want to check whether riding accidents are covered by
your health insurance. Some companies are starting to exclude coverage for accidents due
to risky activities, such as skiing, snowboarding, motorcycle riding, and horseback
riding.
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