Equine Insurance: Do You Feel Lucky?

That was practically a mantra for one of our first equestrian trainers. Actually, this has turned out to be pretty good advice.

We did carry insurance coverage on our first horses. However, as our herd grew, we opted out. It was simply too costly!

Do you need insurance for your horse? What sorts of coverage are offered, and how can you tell which to choose? What exclusions may apply?

What policy options are available?

Equine insurance has grown into a complex industry, as the horse business has matured.

Today, your horse may be insured against mortality (death by accident or illness), specified perils (fire, lightning or transportation damages), infertility and reproductive hazards, theft, and loss-of-use (disability).

What is loss-of-use? Basically, this is intended to cover your horse, if his show or work career comes to a sudden end. Suppose your Grand-Prix jumper becomes injured and can only do flat work under saddle, or your Prix St. George dressage mount develops a soft-tissue condition and can no longer piaffe. Can you collect? Loss-of-use is difficult to prove, and this coverage can be quite costly.

How much insurance does your horse need?

A rather sophisticated actuarial formula is used to calculate value and risks for equine insurance. In principle, it operates much like human life insurance underwriting.

Basically, an equine insurance premium is based on the value of a horse. Other factors include the horse's age and intended uses. Jumpers and eventers are costlier to insure than dressage horses. Racehorses, reiners and barrel racers usually demand higher-ticket policies than trail horses. Horses who travel to shows may have higher premiums as well. The location and stabling of your horse is also a factor.

If your horse is worth a lot of money (as in, more than $10,000), then you may decide it is worthwhile to purchase insurance to cover life or loss. If you paid $1,000 or less for your horse, then you may opt out of insurance. (This does not diminish the amount of love you have for your equine companion!)

If you have several horses, the insurance premiums can add up quite quickly. It's important to weigh the odds and determine whether the output is worth it.

Can foals be covered?

Equine breeders may choose to purchase in-utero insurance. This may cover stillbirths or even hazards of multiple conceptions (i.e., twins). Live foal insurance is another possibility, although many stallion owners offer rebreeding as part of their initial breeding contracts. (I know one breeder who allowed a mare owner to rebreed to his stud for several years in a row, until her mare successfully conceived and carried a live foal to term.) Before you breed your mare, you will want to read your breeding contract carefully to determine what guarantees are included and decide whether insurance is needed.

In today's market, several insurance companies do refuse to insure foals. Others offer limited policies, which change monthly, as the foal grows. Underwriters tend to view newborns as higher risks. By the first year, a colt or filly's actuarial rating will have improved dramatically. Sometimes, a youngster's insurability improves after he has learned to wear a halter and lead properly.

Is equine medical insurance worth the high premiums?

Major medical insurance can be quite costly for horses, and it is never comprehensive. For example, a policy covering a ten-year-old horse could be $500 or more per year. This excludes vaccinations, worming, joint injections, dentistry, or other routine-classified procedures. Most equine medical insurance will not cover x-rays, ultrasounds, or other diagnostics.

Natural and homeopathic treatments are rarely accepted by insurers, either.

Generally speaking, major medical insurance protects the owner from massive surgical or hospitalization expenses. If your horse should suddenly require colic surgery, you would be relieved to have medical insurance. If your horse came up lame, your insurance coverage would be irrelevant.

Equine insurers, as a rule, require veterinary certificates before initiating coverage. Also, confirmation of vaccinations and a current Coggin's blood test may be mandated. These prerequisites may be issued annually for policy renewals.

If you have a senior horse, you may have trouble finding major medical insurance. Many underwriters refuse to write policies on older horses. In fact, they may deny policy renewals for existing client horses, once those equines reach a certain age (such as 15).

What about exclusions?

Detailed exclusions apply to virtually all equine insurance policies. For example, will your equine mortality insurance compensate you, if your horse dies from a snake bite or eating a poisonous plant? Can you file a claim for an injury he suffers during a fox hunt?

A savvy horse owner will consider all possibilities before signing an insurance contract. If you have any questions, ask your insurance carrier upfront.