People have been riding horses for centuries, and they remain a popular choice for recreation and transportation even today. There may be many reasons why people invest in horses, but regardless of the reason, it’s important to protect your investment—for work, fun or just companionship—with equine insurance. Not only can this help cover any injuries or illnesses that might happen to the animal, it can also provide coverage should the animal be stolen or lost. In this article, we’ll discuss the main types of equine insurance, and other considerations for horse owners.
What is Equine Insurance?
Equine insurance is insurance for horse owners that generally covers the loss or injury of the horse. In this instance, we will define equine insurance as insurance on the horse itself, although there are often many different types of insurance that can sometimes fall into this category—including farm property coverage for paddocks and land and liability insurance if your horse is used for business purposes.
The 2 Types of Equine Insurance
Although there are different types of policies and coverage options to choose from, most equine insurance boils down to two types: Mortality and theft insurance, and Medical/Surgical coverage.
All-Risk Mortality and Theft
Typically only issued for horses under 20 years of age, a mortality policy covers the loss of a horse due to death, or even theft. This type of coverage is typically available for both personal use animals and trail horses, and in the instance that your horse needs to be put down, is stolen or dies, a mortality policy will reimburse you for the loss, based on age and health of the horse at the time the policy is taken out.
Available as an add-on to mortality plans, these plans can cost anywhere between 2.5 and four percent of the animal’s value. Medical/Surgical policies can be considered like health insurance for your horse—covering medical costs in case of illness or injuries—and similarly, cover everything from prescriptions to surgery. However, most policies will not cover basic or preventative care like vaccinations or dental care.
Other Insurance Considerations for Horse Owners
If you are considering equine insurance for your horse—whether it be a work asset or more of a family friend, there are other things to consider when considering an equine policy.
The right policy matters
While there are two common policy types that we’ve covered above, the reality is that there are many options for different types and forms of coverage for horse owners. Liability insurance covers injury and property damage to others, horse transit policies cover the transportation risks of horses that are constantly on the move. One should also consider the surrounding policies that will help protect the investment and the horse itself—like property or dwelling damage for structures like barns, and farm coverage for a larger land property.
Because the uses of horses differ, as does each household or business, it’s important to understand that policies can vary widely. Some mortality policies may pay out a mere thousands, while others pay multiples of that in case of loss, but the premium will match the back-end payouts, as well. As with any other insurance consideration, navigating the many options and finding the best selection for you (and your horse!) is key. Make sure you engage an agent you trust along the way to make the process easier, and to nail down the right policies for you and your large animals.
Policies are non-transferrable
A policy on a horse is similar to a policy on a human—they are for that specific individual, and cannot be transferred to another. While it may be an option to add more animals (read: horses) to your policy, they would need to be listed as separate individuals. What’s more: if you sell or give the horse to a new owner, the policy cannot go with the horse. Instead, that owner would need to take out a new policy for the animal, and you’d need to cancel yours.
Timing is key
If you already carry a policy on your horse—or once you have one in place—understand that most policies require immediate notification if the horse becomes ill or injured. Know what your policy covers—and what it requires of you for claims—before they become an issue later on.
However your horse fits into your family, and whatever the type of coverage you may need, Penny Insurance is here to answer any questions and help you select the best plan possible to cover your equine investment. 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.
A lot of people take their insurance for granted. When they’re driving to work, they don’t question the safety of the road or the safety precautions taken by other drivers; when they get home, they don’t think about whether or not their house will be there if a natural disaster strikes. But this is all because we trust in our insurance policy and feel safe knowing that we are covered.
But, when it comes down to it, do you have comprehensive coverage? Are all your most important things covered? Knowing whether or not you are fully insured against whatever may come your way is important, but it starts with understanding the types of coverage available, and matching them to your own needs. In this article, we’ll discuss the most common types of insurance coverage and how each one can benefit your family’s needs.
A standard Home Insurance policy usually includes coverage for your home, belongings, and liability. This means that if something happens to your house (including fire, theft, etc.), your insurance company will cover the cost to help you rebuild or repair it. It also means that if someone is injured on your property, your insurance company will help cover the costs of injury or property damage.
However, it’s important to realize that there can be significant gaps in homeowners’ coverage—just because something happens to your home doesn’t mean that it’s automatically covered. One example of this might be flooding—which oftentimes is not covered by a standard homeowners’ policy. To find out what your coverage includes—and does not—schedule time with your agent to go over your policy.
Similar to the coverage in homeowners’ policies, renters insurance covers a renter’s belongings in case of fire or theft or other circumstances, whereas property owners’ coverage does not extend to their tenants. There are two types of renters’ insurance that are common: replacement cost insurance, which covers the cost to replace anything that is lost; and actual cash value coverage, which pays out the assessed value of the lost items.
However, it is important to note that there are also gaps in renters’ insurance—they typically will not cover high-value valuables under the same policy (you’d want to get an additional policy for them), and motor vehicles may also not be covered by the singular policy.
While health insurance is often covered by a corporate entity or by the government (in cases of an ACA plan), health insurance is still one of those major coverage options that you should maintain—all the time. Providing coverage for doctor’s visits, prescriptions, catastrophic illness or injury and even dental and vision care in some plans, health insurance is definitely a line item you don’t want to be without. However, because it can also be complex in what you’re eligible for and what it might cost you (especially considering subsidies and coverage options) it’s always best to walk through your options alongside an agent who knows the ropes.
Life and Disability Insurance
When it comes to insurance plans, one of the most important (and often overlooked) is life insurance. Often paired (or available to be paired) with disability insurance, life insurance offers a payout in case of your—or a loved one’s—demise, providing a certain level of stability in an otherwise uncertain time. Similarly, disability insurance can provide income and coverage options in the case that you are either permanently disabled, or in case of short-term (up to six months) or long-term (over six months) illness or injury. Because these plans are relatively inexpensive but cover you in case of one of the worst possible outcomes, life and disability insurance should definitely be on your checklist for 2022.
Business Owners’ Insurance
If you own a business and do not carry insurance on it, you may want to reconsider in 2022. A Business Owners Policy (BOP) is straightforward insurance for business owners—combining property coverage for your business assets with general liability insurance. While many business owners may need added coverage based on their industry or specialty, business owners’ insurance policies are a great place to start.
Although you may not hear about this type of coverage that often, umbrella insurance can be a great type of insurance to keep in case of a major problem. Covering liability, damage and injury, umbrella policies fill in the gaps that the common types of insurance may leave behind, offering an added layer of protection should something go wrong.
As an added protection, umbrella insurance can not only help with excessive bodily injury or property damage, but also offers coverage in case of libel, slander or false arrest.
Specialized Insurance Policies
What do horses, antiques, boats and a private art collection all have in common? They may all be insured under specialty premier policies that cover them separate from your other homeowners or vehicle policies. While all of these are very different, with different policy terms and valuations, keep in mind that if something has value to you, it’s worth insuring it from harm. To find out if your prized possessions need additional coverage, talk to your agent about this premier coverage.
Whatever the types of coverage you need or the questions you may have, Penny Insurance is here to help you along the way and to make sure you’re completely covered for anything that could happen—this year or in the future. 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.