| This section discusses the various types of horse | | | | One should check if the insurance is for current |
| insurance, common mistakes and how to avoid | | | | value or for replacement value. For example, a |
| them, and tips for horse insurance. | | | | high quality saddle may cost $2000 or more, but |
| Types of Horse Insurance | | | | if it is worn and scuffed may have a resale value |
| Most horse insurance plans allow you to choose | | | | as low as $200, even though this is just cosmetic |
| what you want to insure against, such as: | | | | damage and the saddle would be good for many |
| - Third party insurance (also known as 'Public | | | | years. An insurance policy which paid 'current |
| Liability', sometimes known as 'horse liability | | | | value' would give you only $200 whereas an |
| insurance'). This is insurance for injury to other | | | | insurance policy which gave you 'replacement |
| people or damage to their property. For example, | | | | value' would pay the cost of an equivalent new |
| if your horse goes onto a road and causes an | | | | saddle. |
| accident, you might be liable for damage to cars | | | | Policies which pay replacement value are |
| and injury to people. This insurance is to pay for | | | | consequently better, but more expensive as well. |
| any such financial liability. In some countries, horse | | | | If you choose the less expensive 'current value' |
| owners are legally obligated to have this insurance. | | | | option, when asked the value of the items being |
| Note that this is insurance only for financial liability, | | | | insured you should specify the current value |
| not for criminal liability (e.g. if your horse causes | | | | rather than the replacement value. Otherwise, you |
| serious injury or death due to negligence on your | | | | could be paying a premium calculated on a $2000 |
| part, you could still be at risk of a jail sentence). | | | | value saddle even though the potential payout is |
| - Personal Injury. Insurance in case you are | | | | based on a $200 value saddle. |
| injured yourself by your horse. | | | | Conditions |
| - Vet Costs. Insurance for vet costs is one of | | | | It is absolutely important to check carefully the |
| the most common types of horse insurance. | | | | conditions under which the policy will pay out and |
| Normally, it does not pay for routine costs (e.g. | | | | the conditions when it will not. Some examples: |
| yearly inoculations) but is intended for costs | | | | - Personal Injury insurance. Policies vary in terms |
| associated with injury or illness. Keeping in mind | | | | of what is covered in the event of an injury. Is it |
| that a severe case of colic requiring surgery can | | | | a fixed price (e.g. so much money for a broken |
| cost $10 000 or more, this type of insurance is | | | | leg, so much for a missing tooth), or medical |
| seriously worth considering. | | | | costs? Does it include loss of earnings? Is it just |
| - Death (also known as 'mortality'). Insurance to | | | | injury while you are riding the horse (i.e. horse |
| be paid out if your horse dies. Normally more of | | | | riding insurance), or does it cover all riders of the |
| interest to people with valuable horses, rather | | | | horse (i.e. horse rider insurance), or does it cover |
| than inexpensive ones. | | | | injury to you by the horse under all |
| - Permanent Loss of Use. A horse might survive | | | | circumstances? |
| a serious injury or illness, but as a result be unable | | | | - Permanent Loss of Use. What is use defined as? |
| to continue to perform its function. For such | | | | For example, if you had a competitive jumping |
| insurance one needs to specify the use of the | | | | horse which could no longer be used for jumping |
| horse (e.g. riding, show jumping, international | | | | but could still be used for other purposes |
| competition). | | | | (breeding, normal riding), would you receive a full |
| - Theft. A particular risk with valuable horses and | | | | payout, a partial payout or none at all? Are you |
| those in the public eye (e.g. show, competition, | | | | insured for a fixed amount, or for an amount |
| racing and stud horses). | | | | based on the decreased value of the horse? |
| - Tack and Trailer. These items can be insured | | | | - Location. Is your horse ensured everywhere |
| against damage (e.g. damage to trailer in a road | | | | (e.g. stable, riding out, transport, shows, |
| accident) or theft. You may wish to check with | | | | competitions) or just certain locations (e.g. on |
| the local officials if horse trailer insurance is a legal | | | | owner's property)? A breeder friend of ours took |
| requirement. Different insurers offer a number of | | | | a $20 000 horse to a clinic for urgent colic |
| variations on these. For example, in the event of | | | | surgery but the horse died in transport; had it |
| theft, some advertisers will pay the cost of | | | | died at home he would have received full |
| advertisements and rewards (up to a maximum | | | | payment but as his insurance did not include |
| amount) aimed at recovering the horse. | | | | transport he received nothing. |
| You can choose the types of insurance you want | | | | - Vet Costs. Which type of vet costs are included |
| your policy to cover, and how much insurance for | | | | and which are excluded? Any special conditions? |
| each item (i.e. how much do you insure your | | | | Are you required to obtain approval in advance (if |
| horse for, how much do you insure your trailer | | | | so, in the event of an emergency outside of |
| for). Many companies have online horse insurance | | | | working hours, you may not be insured for |
| quotes, which allow you to specify your | | | | treatment done prior to approval). |
| requirements and receive an immediate quote, | | | | - Amounts. What are the maximum amounts |
| then change the insurance levels and receive a | | | | which will be paid? Under what conditions would |
| new quote. You can use this facility to determine | | | | reduced amounts be paid? |
| how much each item of insurance costs, which is | | | | Conclusion |
| useful when deciding which items to insure and | | | | There are three main reasons for insuring: |
| which not to. | | | | - To protect your investment (e.g. horse, trailer, |
| It is usually cheaper to combine different types of | | | | saddle and tack) |
| insurance into a single policy, rather than have | | | | - To protect yourself (from public liability claims, |
| separate policies. For example, it is cheaper to | | | | or injury costs) |
| have a single horse and trailer insurance, rather | | | | - To protect against large vet bills However, |
| than insure your horse under one policy and your | | | | horse insurance is a substantial cost, so one needs |
| trailer under another. | | | | to look closely at what one insures and for how |
| Tip: If you only want 'Third Party Insurance', you | | | | much, balancing protection provided against costs. |
| can sometimes do this less expensively under | | | | One also needs to look very closely at the terms |
| your house insurance than under a separate horse | | | | and conditions of the individual policy. In some |
| insurance. | | | | cases, it may be worth paying more, in exchange |
| Current Value or Replacement Value | | | | for more favourable conditions. |