Horse Insurance – Is It Worth It?
Horse Insurance – Know Your Policy
Thinking about getting horse insurance? Learn the difference between horse mortality insurance and major medical coverage horse insurance. It could save you some money.
There are two main streams of insurance areas: mortality which pays out if your horse dies and medical insurance for veterinary care.
Mortality Horse Insurance
The rule of thumb for mortality horse insurance is if you can easily replace the horse, then mortality insurance is not necessary. No matter if the horse is $3,000 or a $300,000 fancy show horse, if you can comfortably replace your investment then it is worth the risk to remain uninsured.
As an investment it may be wise to consider the cost of premiums versus the cost of the horse. If for example, you have purchased a horse valued at $100,000, the premium is 3% of the value of the horse per year. This adds up to $3,000 per year. If you continue to pay the premium for 6 years that is $18,000 spent on insurance.However if the horse dies after year 6, the payout will be $100,000 when you have invested $18,000 on insurance.
Read the horse insurance policy carefully and make sure that there is a provision to cover euthanasia should a tragedy occur that the horse cannot be saved. Also most mortality horse insurance policies include theft, should someone steal your horse.
Major Medical Coverage
The only way to get medical coverage is by having a mortality horse insurance policy on your insurance. The major medical coverage is an addition on the mortality coverage. Any amount can be insured for the mortality portion so that the medical coverage can be obtained.
It is recommended to get major medical horse insurance. To see if it is cost efficient, consider stacking up the major vet bills against the cost of the insurance policy. Things like colic, pneumonia, suturing a wound could all potentially be covered. It is important to carefully review the policy to understand what is covered.
One area to study is diagnostics. Some policies outline diagnostic techniques as being 100% covered if they result in a treatment covered by the horse insurance policy. Others identify as paying out 50% if it results in a covered treatment and some will pay nothing. Check the policy regarding the horse’s age.
Some horse insureance policies do not insure elderly horses. If major medical is wanted a minimal mortality coverage may have to be obtained in order to get the major medical coverage. As the horse gets older, be prepared to have higher premiums.
Other areas to consider are the professional care and hospitalisation care after a treatment. Some policies consider 20 days to be covered and some go as long as 90 days.
Before Signing the Check
Before signing on the line for your horse insurance policy, check with a seasoned and well trusted agent and veterinarian to find which policy suits you best.
What kind of insurance policy do you have on your horse. If you don’t have a horse, what type of horse insurance would your get?
Let us know…. We’d love to hear from you.
Read more at Suite101: Insuring the Horse – Is It Worth It?: Horse Insurance, Know Your Policy http://horses.suite101.com/article.cfm/insuring_the_horse_is_it_worth_it#ixzz0eV21Wfns