Horse owners purchase equine insurance to protect their finances as well as the wellbeing of their horses. If you are an owner who wants to buy horse insurance, it is worth noting this kind of coverage is not quite the same as the one geared toward human beings. Here are three things to know about equine insurance.
1. There Are Different Policy Types
There are several types of equine insurance policies. For example, an agreed value policy contains an explicit statement about the financial worth of a horse and requires that an insurer pay that exact amount if the said horse dies. This type of arrangement is unlike an actual cash value policy, which allows insurers to pay an amount that reflects a horse’s value once it dies. An actual cash value policy takes into account the fact that an equine’s worth can decrease over time or be drastically reduced due to declining health. There are also policies tailored to meet the needs of horse trainers, riding instructors and other members of the equine industry. These kinds of policies usually take liability, property and the use of equipment into consideration.
2. There Are Varying Costs
The costs associated with equine insurance can differ. Variations in cost are a result of several considerations. One factor is the horse itself; a horse’s age, skill set and monetary value can affect the cost of a particular policy. Another component is coverage; some policies only address liability while others address liability, mortality and health. Lastly, a horse owner’s chosen level of coverage has an impact on the monthly insurance cost. Some horse owners want their insurance policy to have full coverage while others desire one that provides partial coverage. Since there are many equine insurance companies, horse owners can shop around to find a policy that satisfies their needs and aligns with their budget.
3. There Are Distinct Coverage Classifications
Equine insurance can consist of various types of coverage. There is liability coverage; it is used to pay for the expenses that accumulate when a horse damages property or harms an individual. There is mortality coverage; it provides the funds needed to purchase a new horse after an insured horse dies or loses its utility. There is medical coverage; it fully or partially covers the expenses that arise once a horse receives treatment for an injury, illness or surgery. You can purchase a policy that consists of all or some of these coverage types.
Many horse owners regard equine insurance as an extremely valuable asset. It provides protections that give them peace of mind.