How To know If Insurance Is Right For You And Your Horse

Photo by Shelby Agnew

“How do I know that I need insurance for my horse?”

As an equine insurance agent, I frequently receive this question from new horse owners, who are wondering where to even start when it comes to an equine mortality policy. As a lifelong equestrian and horse owner, I agree that discussing horses related to money is never fun, and we never want to think about the worst that could happen to our beloved equine partners, but we must ask ourselves, “How much risk can I afford?” 

That answer is different for everyone, since the amount of financial risk we can take on varies between every horse owner. If you know in the event of a catastrophe, such as death, a major injury, or theft, you cannot afford to replace your horse or pay the full cost of medical expenses, insurance might be a great option for you to transfer some of that risk. 

On the other hand, if you possess enough savings to feel like you can comfortably afford to potentially replace your horse or cover vet costs, you might decide that insurance is not right for you. For many horse owners, mortality insurance provides financial protection after purchase, since the amount they would immediately need in savings to replace their horse or pay vet fees can feel out of reach.

Photo by Shelby Agnew

Keep in mind that insurance is based on the principle of indemnity, meaning when a loss occurs, you cannot “profit” from it, and you must be restored to your financial position from before the loss. When insuring horses, their purchase price is often used as their insured value, which is the amount you would generally receive in the event of a mortality claim. If you believe your horse should be valued higher than the purchase price, training expenses and show records can sometimes be used to justify a higher value to the underwriters, who review a variety of factors, comprised of age, discipline, breed, purchase price, etc. 

Going back to the principle of indemnity, your horse’s insured value is not always the same as the “market rate” or amount you believe you could successfully sell your horse for. 

Some horse owners, who are concerned about fully affording veterinarian fees, due to an accident, illness, injury, or disease, endorse their policies with Major Medical. While the major medical coverage does involve a minimum insured value of the horse in addition to sub-limits and deductibles, it can reimburse policyholders for a variety of expenses, as long as the vet fees are not for pre-existing or routine medical conditions, like joint injections. 

Photo by Shelby Agnew

Major Medical typically covers diagnostic tests, such as ultrasounds, X-rays, and bloodwork. It also covers veterinary treatments for lacerations, ulcers, diseases, colic, and more. Even surgeries are included, from bone chip removal to colic surgery. 

Horse owners, who do not qualify for Major Medical, but are still concerned about certain veterinarian fees, sometimes endorse their policies with Surgical or Colic. Similar to Major Medical, there are deductibles, and the coverages cannot reimburse pre-existing conditions, but the premium is typically less costly and there are no sublimits. The key difference between the surgical endorsement and the colic endorsement is that the latter only covers vet fees relating to medical or surgical colic. 

The surgical endorsement covers a longer list, consisting of colic surgery, stifle surgery, bone chip removal, etc, if the surgery is not elective or voluntary.

For horse owners with additional unique needs, there are other insurance options, depending on eligibility, such as Loss of Use, Stallion Infertility, International Transit, and Guaranteed Renewal. We don’t expect saddles, boots, and helmets to be one-size-fit-all. Insurance isn’t either. Equine mortality policies should be tailored to fit your and your horse’s needs, and they might not look the same for each and every horse owner, since everyone has a different amount of risk they can afford.

Photo by Shelby Agnew

Comparable to home or auto insurance, equine insurance involves an annual premium using a percentage rate that you pay to cover your horse. While it may feel uncomfortable to relate the potential loss of your horse to finances, it is important to recognize as a responsible horse owner that investing in insurance each year can prevent you from experiencing devastating financial loss if a catastrophic event ever occurs.

If you have any questions about finding the best coverage for your horse, please don’t hesitate to email me or message me on social media, so you can climb in the saddle knowing your equine partner is protected!

Shelby Agnew

Equine Agent with Chartier Agency

As a lifelong, third generation equestrian, horses have always been Shelby’s #1 passion. After growing up on the backs of cutting horses, she always knew she wanted to support riders who love their horses just as much as she loves her own, leading her to equine and agribusiness insurance. By offering tailored coverage that meets the needs of other horse owners, Shelby has helped many equestrians protect what means most to them. She can also provide liability protection to trainers, farriers, and equine clubs/ associations.

Email: shelby@chartieragency.com

Facebook: Shelby Agnew – Equine & Agribusiness Insurance Agent 

Instagram: shelbyagnew_insurance

Learn more about Chartier Agency, an independent insurance agency that specializes in equine and agribusiness related coverages

This article is from the July issue of Equine Business Magazine