Since 1992, Laura Connaway of Connaway and Associates Equine Insurance Services, Inc. has been working with her team to bring a personalized touch to the horse insurance market, offering competitive coverage for horses, horse farms, and equine liability. As an insurance agent, the most important part of the role is to inform and educate clients so they understand the coverages that are available to suit their individual needs. Laura addresses several of the most commonly asked questions below.

When do I need to notify my insurance company of changes in my horse’s condition?

Your insurance carrier requires notification of any changes in the condition of your horse. It is a part of your insurance contract to notify the insurance carrier of any accidents, illnesses, injuries, diseases, lameness, or any time your horse receives non-routine care. Late reporting may impact your coverage under the policy and may affect your ability to make a successful claim. If you do not plan to file a claim, an incident-only report can be provided to fulfill your requirement to notify the insurance company of the change in condition.

Should I call my vet or my insurer first in case of a medical emergency?

In the event of a medical emergency, contact your veterinarian immediately and proceed with life-saving care. Next, contact your insurance carrier using the emergency phone number in your policy or listed on the ID cards provided by your agency. The carriers we work with all have 24/7 emergency numbers. Our agency also monitors the phone for emergencies and will assist our clients in the event of an after-hours emergency. It is important to provide insurance emergency contact information to your horse’s caregivers so they know who to contact in the event of an emergency.

I would like to change my horse’s insured value. How would I go about it?

In a horse mortality policy, Full Mortality is the base coverage; it reimburses you up to the insured value of the horse for death, theft, and authorized humane destruction. If you think the Full Mortality Value/Insured Value of your horse has changed during your policy period, contact your agent. If you would like to request an increase in the insured value due to show results or professional training, your agent will provide this information to the insurance underwriter for a value review. If the insurance underwriter agrees with your requested value, a policy endorsement will be issued to increase the Full Mortality limit in your policy. If you would like to request a decreased value, this can be done at any time. Value changes can be requested at any time during the policy period; contact your agent to discuss the process. The available medical options may change if the full mortality value is changed.

My horse has changed careers. Do I need to let my insurer know?

The “use” of your horse refers to the job or jobs your horse performs, such as show hunter, show jumper, dressage, eventing, barrel racing, trail riding, roping, driving, or breeding, to name a few. If you decide to switch disciplines or add additional disciplines to your horse’s résumé, then that means the “use” of your horse has changed. For example, if you start jumping your dressage horse, start eventing your show jumper, move your event horse up a level, or decide to breed your horse, the “use” of your horse has changed. The insurance carrier requires notification of a change or addition to your horse’s use. The available coverages and insurance carrier ratings vary by use. If a change in use is not reported to the insurance company, your coverage may be impacted in the event of a claim.

I’m buying a new horse — how does that affect its insurance coverage?

In order to insure a horse, you must have an insurable interest. If you purchase a new horse in full and you are the only owner, you are the only party with a financial interest/insurable interest in the horse, and you need to take out an insurance policy in your name (or the name of the entity that owns the horse). The seller (if paid in full) no longer has an insurable interest in the horse, and any insurance on the horse carried by the seller ceases when the horse is sold. All parties with a financial interest in the horse must be disclosed in the insurance application (for example, owner, co-owner, lessee, loss payee, etc.). If the ownership interest in a horse changes at any time during the policy period, you need to notify your agent.

A few examples of changes in ownership include adding a co-owner, changing the ownership from an individual’s name to an LLC, or leasing your horse. The insurance carrier requires notification of any ownership changes at the time of the change or lease.

What happens if my horse is stolen or needs to be put down?

In the event of your horse’s theft or death, report the loss immediately to your insurance carrier. In cases of theft or vehicular involvement, such as a car accident, contact the police. Do not have your horse euthanized without authorization from your insurance carrier. If your horse is found deceased, report the death immediately. A necropsy will likely be required if the horse is euthanized or is found deceased. It is important to advise your horse’s caretaker of these loss notification procedures.

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Owning a horse can be expensive. Beyond the initial purchase price, other fees such as board, training, and showing fees can add up. A horse that becomes seriously ill or injured can cost you a fortune in veterinary bills. Should the worst happen and your horse dies, not only will you be emotionally devastated, but you will have lost your financial investment and be without the funds to buy another horse.

One way to protect your horse, and your pocketbook, is to purchase equine insurance. The right plan will help you control costs if your horse requires unforeseen medical care and will reimburse you for his value if he dies. Having equine insurance offers you peace of mind knowing that if something happens to your horse you can work on getting him the appropriate treatment and not worry so much about budgeting for large vet bills.

Getting Started

To find an equine insurance agency, ask your trainer, veterinarian, or a horse friend to recommend some options or do some research online. Be sure to call a few different companies to see which sounds like the best fit for you. Equine insurance policies are customizable, so the agent will go over each type of coverage available, explain different options, and give you a quote.

Base policies begin with full-mortality insurance, which is essentially life insurance for your horse. This reimburses you the insured value of your horse in the event of death due to any cause, but it also includes theft and has provisions for humane destruction.

Many owners choose to add major medical to their full-mortality base policy, which covers non-routine veterinary expenses up to a specified limit. This can include such costs as diagnostic procedures, surgery, medication, and veterinary exams associated with an illness or injury. It can be useful in a situation where your horse becomes ill and needs to go to a clinic for a few days, or if he becomes lame and requires advanced diagnostics or regenerative care. If you don’t want to purchase a full major medical program, you can choose pared-down medical coverage instead, such as medical assistance, a surgery-only policy, or a colic treatment and surgery option.

It is important to know that policies are reviewed for renewal by the insurance company’s underwriters each year to advise coverage options for the upcoming year. For example, if your horse colics and needs surgery, the policy may not cover colic when it is renewed the following year.

Common Equine Insurance Questions

It’s important to ask your insurance agent questions about the policy ahead of time so that you have a clear understanding of what’s included. Here are a few questions that many owners have when purchasing policies for their horse.

How do you determine insured value?

First, you start with the horse’s purchase price. You can include any sales commissions as well. If you have owned the horse for a while, you may be able to insure it for a value higher than the purchase price. The agency will submit competition records, along with the value you intend to insure for, to the insurance carrier. This information helps the carrier to decide whether or not to approve that proposed value. For young horses, you can also include training fees as justification for the horse’s value.

At what age can you insure a horse?

You can begin insuring a horse at 24 hours of age. The rate to insure a horse from 24 hours of age to 30 days is higher, so if you start that young, you will pay a little bit more. If you wait until the foal is 31 days, it’s less expensive. The rate goes down each year until the horse is two years old, and then he can be insured at the standard rating for his use, like as a hunter or jumper.

A horse can have full mortality and medical coverage through age 20, though the rate for the full mortality increases each year after age 16. Sometimes, a customer will decide to reduce the value, so they’ll keep their premium close to the same, but they can continue to insure and get medical coverage.

How expensive is equine insurance?

Insurance premiums are based on your horse’s age, use, and value of your horse. As mentioned above, as your horse gets older (over 16), the rates go up. However, for ages 2 through 15, most carriers will write the standard rating.

Because you can customize your policy, you may choose to insure your horse for a value less than his current market value. You can come up with an amount that fits into your budget. For example, say your horse is valued at more than $30,000, but when you get the premium quote, you decide you’re more comfortable paying the rate for a value of $25,000. You can still get the major medical add-on, and if he were to die, you can still recoup a good portion of your investment.

Buying a policy for your horse is different than buying any other type of insurance policy because you’re so attached to the animal. It can be an emotional process for you if your horse becomes ill or injured, or worst-case scenario, dies. Being able to have an open and honest dialogue with an experienced agent that you feel comfortable with is an important factor in making sure you have all the answers you need.

Further Reading

• Six Types of Equine Insurance
• About Horse Riding Insurance
• How to Budget for Vet Bills

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The post Equine Insurance 101 appeared first on Horse Illustrated Magazine.