Equine Insurance will offer peace of mind for the horse owner, but what does it all mean?
The basic equine insurance coverage purchased by horse owners is typically mortality and major medical policies, generally, mortality insurance reimburses a horse owner if the horse dies and depending on the policy the owner may receive partial or fully repayment for the horse. Medical and surgical policies cover the costs associated with treatment of an injury or illness. An owner can purchase mortality coverage alone, but medical and surgical policies are generally available only in combination with mortality.
Mortality Insurance for Horses
Equine Mortality policies will cover for most cause of death, including natural occurrences such as colic as well as fatal injuries resulting from accidents, fire, lightning and other causes. Some policies even protect against freak accidents for your horse. Age limits will vary by insurance provider, full mortality coverage normally is available to horses as young as 24 hours and as old as 17 years. When evaluating a policy make sure the exclusions are clearly spelled out. A company might be reluctant to pay, for example, if a horse dies due to real or perceived negligence or other human error.
Another consideration in choosing a equine mortality policy is the amount of coverage you actually require. You can insure up to 100 percent of the value of your horse, but the more expensive the horse, the higher the premiums will be. Rates depend on several factors, including the horse's current value, age, sex, breed and discipline.
Loss of Use
A variation on equine mortality coverage is called "loss of use," which pays a percentage of the horse's value should an injury leave him permanently unable to perform in the discipline identified in the policy. For instance, if an injury ends a jumper's career the owner may collect up to 60 percent of the horse's insured value. But be sure to read the fine print: Many loss-of-use policies give the insurance company the right to take possession of the horse after paying a claim. Others offer two choices: a higher reimbursement if the insurer keeps the horse or a lower reimbursement if the owner keeps the horse.
Medical And Surgical Insurance
Technological advancements are having a tremendous impact on equine health care, but the costs of certain treatments can be prohibitive. An equine insurance policy may help you avoid the heartbreaking decision of whether you can afford the veterinary measures that could save your horse's life.
As the name suggests major medical/surgical insurance covers medical and surgical treatment for illnesses and injuries that occur during the insurance policy period. Some companies describe their coverage simply as "major medical," but it often includes surgery as well. Typically, the coverage includes diagnostics, medications, surgery and postoperative care.
Medical/surgical policies usually do not cover routine care such as vaccines and dental treatment, nor do most policies cover elective or cosmetic surgeries or treatment for developmental or congenital birth defects. Alternative therapies, such as chiropractic, acupuncture or magnetic therapy, are often excluded from policies, but some companies review such treatments on a case-by-case basis.
Weighing the Costs
Whether you buy equine mortality insurance alone or in conjunction with medical/surgical insurance, your annual premiums will very much depend on the horse, your location and other factors. For mortality coverage you can generally expect to pay premiums of anywhere from 2 to 4 percent of the horse's value.
Adding major medical/surgical insurance to your mortality policy generally means that you'll pay an additional flat fee that is based on the coverage limit and the amount of the deductible, the sum you must pay if you make a claim.
You can save money on medical coverage by opting for a slightly cheaper "surgical-only" policy, which typically covers only the costs of surgery am postoperative care. These policies frequently will not cover any diagnostic work or hospital costs that occur before surgery. Surgical-only policies are not as common as major medical, simply because the coverage is not as broad, and the cost savings often are minimal.
Author: Simon Hemmings
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