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.
Penny Insurance Agency has been serving our local areas and beyond since 1931. With deep roots in Hendersonville, NC, Lynn NC, and the surrounding areas, our agency understands the local economy, culture, and how our clients earn their livelihood. We are also licensed in South Carolina, North Carolina, Georgia, Texas and Florida to better serve our clients’ needs.
The areas surrounding our local offices in Hendersonville, NC, Lynn, NC and beyond are agribusiness hubs with crop farms, equestrian operations, and more. “Agribusiness is NC’s #1 industry and makes up 20% of gross local product.” In fact, “Ornamentals, apples and berries are three of the large producers in Henderson County and the community enjoys a variety of other crops as well – sweet corn, strawberries, tomatoes and much more. We also have several livestock operations. Henderson County is blessed with a wonderful agribusiness industry.”
We understand the work agribusiness owners put into their farms and the resources it takes, and we are here to protect it. With Chubb Agribusiness Insurance, we can customize coverage plans for equine operations, hobby farms, dairy farms, small to mid-sized hog confinements, hay operations vegetable, fruit, and nut operations, and grain and other crop farms. Policies cover risks associated with dwellings, farm buildings, recreational vehicles, hay, machinery and other equipment, automobile and farm trucks, and livestock.
Our agents are conveniently accessible to agribusiness owners in Henderson county with our office Downtown Hendersonville, NC, but are not limited to insuring those in our area. While we love our locals, many of our clients own properties out of state and beyond our office.
In addition to our office in Downtown Hendersonville, we also have an office in Lynn, NC. We understand the rich history in equestrian sport in the area and involvement in the equestrian community, and we’re here to protect it. With the Tryon International Equestrian Center just 15 minutes away from our office and the local area brimming with equestrian enthusiasts and professionals, our agents are accessible and ready to discuss the right equine coverage for you.
“Chubb Agribusiness offers a broad range of equine insurance products and services, which were created to specifically address the risks of horse owners and boarders. From equine liability to equine property and casualty insurance, we have the flexibility to customize an insurance program to specifically fit the needs of our customers. The Chubb Agribusiness products provide complete property and liability packages for most equine properties. Whether you own a small horse farm for pleasure, an equestrian estate or commercial equine operation, we can design an equine coverage program to suit your unique needs.”
Our Chubb Equine Agribusiness Coverage protects against risks included liability, tack, hay, feed, dwellings and content, umbrella coverage, recreational vehicles, barns and outbuildings, automobiles and farm trucks, specifically scheduled items of value, and machinery and equipment.
Additionally, Agribusiness Equine Insurance can be customized further to cover scenarios such as increased liability limits and coverages, replacement cost coverage available for dwellings, household, personal property and farm buildings, farm extra expense, farm continuation coverage, extended replacement cost, livestock care, custody and control, tack away from premises, stable liability, riding academy liability, boarding liability, and shows and competition liability. We also offer increased coverage with two equine endorsements for owned tack equipment, signs and gates, hay in buildings, computer equipment, tack equipment in care, custody or control, rental reimbursement for horse transportation, rented golf carts, and newly acquired terrain vehicles.
At Penny Insurance Agency, our agents truly understand the local communities we live, work and play in, and our ultimate goal is to provide the best coverage for those in our area and beyond.
Deciding whether or not to insure your horse can be a difficult decision. You may not think your horse is very valuable, or that insurance will be too much of an added cost on top of the other expenses that come with horse ownership. However, when it comes to protecting your assets (and a horse is an asset), there’s more to consider than just the market value of your horse, or whether or not you want to pay it. Whether your horse is a top competitor at the Tryon International Equestrian Center or your kids’ favorite pet to ride in the yard, you may find after careful research that you can’t afford to NOT insure.
The Value of Your Horse’s Replacement
You may think that equestrian insurance is something only those with very expensive horses ($50K+) would consider. However, replacing a horse that costs only $10,000 can seem insurmountable if you’re also working to pay your mortgage and fund your kids’ college. The important question to ask yourself is, “If I lost my horse tomorrow, could I afford to replace it?” If the answer is “no,” then you may be putting yourself at risk by not purchasing protection. (more…)