Discussing the subject of equine insurance often falls at the bottom of the priority list for most horse owners. It's not exactly the most entertaining topic for a conversation at the barn or on the ringside. However, ignorance in this area can prove detrimental. In order to safeguard your financial investments in these challenging economic times, it's crucial to understand the nuances of equine insurance. Here are the top 5 factors to consider when looking at equine insurance.
The fundamental premise behind insurance is that you pay a premium to an insurance company to transfer the risk of loss to them. This payment is substantially less than the amount the company agrees to pay in case such a loss occurs.
Equine insurance can be a practical solution to mitigate your risk if you aren't financially capable of replacing your horse in the event of a loss or covering the costs of serious veterinary care in case of severe illness or injury.
Full Mortality policy for horses is similar to life insurance for humans. It provides coverage if the insured horse passes away or is euthanized due to a covered accident, sickness, or disease and usually includes limited coverage for theft.
The premium for Full Mortality policy for a horse insured at $10,000 would typically range between $290 - $360 annually. Rates can vary based on factors including the horse's age, breed, use, level, and insured value.
Most Mortality policies include Emergency Colic Surgery coverage, as colic is a common health issue among horses.
While Full Mortality coverage is comprehensive, there are certain exclusions. For instance, pre-existing conditions, intentional harm to the horse, late reporting of a loss, and failure to meet the company's requirements after the loss are not covered.
This is a popular coverage that horse owners often add to their Full Mortality policy. It helps pay for covered medical and surgical expenses if the horse suffers from a covered accident, injury, sickness, or disease during the policy period.
For just $200 per year, Major Medical can provide an aggregate limit of $5,000 for the policy period, with deductibles as low as $300 per claim. Higher annual limits are available with many companies, with varying premiums and deductibles.
Major Medical Insurance covers a range of health issues that a horse could face. However, it does not cover routine health maintenance, preventive care, or pre-existing conditions.
Equine insurance differs from human health insurance in several ways. One key difference is that pre-existing conditions are not covered, even if the horse was insured when it first contracted the disease or condition.
It's vital that you contact the insurance company as soon as a health issue arises. You could jeopardize your coverage if you fail to report the problem promptly.
Deciding what coverage to purchase is an important task. Coverage varies depending on the insurance company, and there are several considerations when choosing the right company and policy.
It's recommended to find an agent who is an experienced horse person, and who can answer your questions promptly. Ask about 24/7 emergency contact availability.
While it's uncomfortable to ponder the worst-case scenarios of horse ownership, having insurance can provide more than financial security—it also gives you peace of mind.
The information in this article is based solely on the author's opinion. It is strongly encouraged to consult your veterinarian or equine professionals for specific questions about your horse's health, care, or training. This information is not intended to diagnose, treat or cure any disease or behavior and is purely educational.
