The Basics of Equine Insurance

In recent years, pet insurance has become more and more popular, offering owners peace of mind to cover sudden illness. But for larger members of the animal kingdom like horses, insurance is either not available, or can be cost prohibitive. For that reason, equine insurance exists—to protect horses used for business or personal use in the case of illness, theft or death. 

What is equine insurance?

Equine insurance is a type of insurance purchased for the care of a horse—for either personal or business purposes. This type of insurance provides coverage in case of illness or death, injury or property damage. 

What types of equine insurance are there?

Generally, there are two types of equine insurance: all-risk mortality and medical insurance. Each type focuses on a different facet to insure; we’ll break them down here. 

All-Risk Mortality and Theft insurance

All-Risk Mortality insurance protects you, the owner, from loss if your horse must be put down, dies, or is stolen. Most policies will cover any type of death, but can only be purchased if the horse is between 2 and 17 years of age; typically, a horse 20 years old or older will not be eligible for coverage. Additionally, policy premiums are based not only on the age of the horse, but also with the following considerations: 

• Purchase price. 
• Training or competition records. 
• Breeding record. 
• Appraisals and Market comparison. 

Medical and Surgical insurance

Medical insurance covers your horse if they need veterinary care or treatment in order to recover from an illness or injury—costs that can be significant, depending on the situation. However, medical insurance can usually only be purchased as an additional policy to a mortality and theft policy. 

What should I know if I am considering an equine insurance policy?

While all insurance policies have basically the same functionality, equine insurance policies have many parameters that should be considered. For this reason, finding an agent who understands policies and coverage is very important. However, here are a few things to understand if you are considering purchasing an equine insurance policy. 

Policy Terms Matter

If you are considering a new policy, it’s vital that you understand the details of the policy. As an example, in a mortality policy, the payout may be made in a previously-agreed-upon amount (that will be reflected in the coverage), or at a fair market value.  Either can provide good coverage, but if a horse dies after illness or injury has taken a toll, it may also affect what is considered “fair market value.” Talk through your questions or concerns with your agent to ensure you have a clear understanding of what is covered, and how much it will return in case of a claim. 

Policies are Non-Transferrable

It’s important to know that equine policies are non-transferrable, which means that if something happens to an uninsured horse, you cannot use the policy from another horse to cover the costs. 

Insurable Value is Not Always a Fixed Number

While many equine policies only cost a few hundred dollars each year for coverage, the value of a horse is not a fixed amount, and neither is the cost of coverage. As you talk with your agent, make sure you discuss coverage terms in detail, as well as the different aspects of your horse that might affect your coverage or premium.

If you’re considering equine insurance, Penny Insurance has the experience and expertise to walk you through it, every step of the way. Should you have any questions about coverage or insurance types, or if you would like to schedule a consultation or get a quote, please contact us and let us know.