This covers your horse's sum insured if he is killed, dies or as a result of the horse being in severe and unremitting pain your vet advises that immediate destruction on humane grounds is necessary. The horse's sum insured is also covered if he is stolen or lost by straying and cover should include all transits within the UK. All insurance policies are paid out on the market value of your horse so be prepared to answer questions to justify this value by supplying the purchase price or competition results. There is no point in over insuring your horse as you will be paying premium on an amount that you will be unable to claim. Well-trained staff will be able to advise you in this area. Ask if there is an excess on mortality claims.

Vets fees cover.

Pays for non-routine vets bills after deduction of an excess. This is probably the area where the cover varies most from company to company and policy to policy. The cost of this cover will rise as the demands on the horse increase. For example vet fees for an intermediate eventer will be more expensive than those for a pleasure hack. Some companies offer a variety of different levels of vet fee cover to suit all budgets. The main concern of horse owners and the most essential part of any insurance policy is the veterinary fee cover. As with human medicine the costs of veterinary cover has spiralled in the past 10 years. This is mainly as a result a vastly increased range of diagnostic procedures and treatments and is only slightly affected by inflationary pressures.

Equine Insurance - What you need to know

For the horse owner to take advantage of this improved care they must accept that the best treatment available will be very expensive and the benefit of having insurance to cover these costs becomes essential. It undoubtedly saves the desperate moral dilemma when the vet advises you that he can save your horse with a good quality of life but it will cost £3500. Ask your insurer how much the excess is. Check the annual claim limit and the per incident limit. There is little point in having an annual claim limit of £5,000 if the per incident limit is £500 as most large vets fee claims come from a single large incident and not lots of little ones. A per incident limit of at least £3000 would seem sensible at today's costs. If your horse is a very low risk animal like a native pony or a occasional hack it may make sense to buy a more limited cover. Check the insurance company's small print do they require unreasonable conditions in the event of a claim.

Loss of use insurance

Loss of use insurance covers the sum insured of the horse if it becomes permanently incapable of performing the tasks for which it is insured. Due to the nature of these cl aims they are often long and drawn out situations as the horse must first be fully diagnosed and if possible treated and only if this is then unsuccessful does it become a claim. Two types of policy are sold:-

• Loss of use due to accidental external and violent injury only such as a kick or getting caught in a fence.

• Loss of use due to sickness, disease and accidents, includes cover for navicular, degenerative joint disease etc.

Generally loss of use is offered at 75% or 100% of the insured value of the horse. In the event of a claim if you wish to keep the horse in retirement you will normally receive a reduced sum varying from company to company. To receive the full 75% or 100% you must choose to have the horse destroyed. Most companies require a current full five stage vets certificate for loss of use insurance which includes sickness and disease, with accompanying X rays for higher values. It is in your interest to go to a Company that requires at least a veterinary certificate as this will establish the horse's fitness at the start of your insurance policy. When taking out this insurance make sure that you understand exactly what you are covered for. Nearly all claims come from sickness and disease and not external injuries and so it is best to ensure that these risks are covered. Make sure that in the event of a claim the horse will be judged on whether it is permanently incapable of carrying out its specific function eg. dressage and not all the functions within the class insured.
For example hacking and dressage are usually taken to be in the same class and many horses who are loss of use claims for dressage lead full and happy lives as hacks, so ensure that the horse will be judged as a dressage horse and not a hack as well .

Loss of use insurance does not cover for loss of value, lack of ability or behavioural problems.

Tack cover

Tack cover is usually just for the items that the horse is ridden in. It does not include rugs or normal wear and tear. It is normally charged on a percentage rate of the sum insured. Check the security requirements for storing your tack, including locks and alarms. Is the tack covered in your car or while at a show?

Third party/legal liability 

This covers you for your legal liability to a third party for damage caused by your horse resulting in death, disease or bodily injury or damage to property. To become liable for a third party claim you have to be shown to be negligent in your handling of the horse or to have reasonably been able to foresee your actions would lead to an accident. This cover is relatively cheap and worth having for peace of mind. The levels are normally for £1 or £2 million. If you ride on National Trust property £2 million cover is required.

Personal accident

This normally covers death or permanent disability whilst riding, driving, leading or handling the insured horse and may include dental treatment. Death and permanent disability cover varies from 35,000 to £20,000 and there is normally a reduction in the amount of death cover for riders under sixteen years of age. Some companies extend the cover to any person riding with the permission of the owner whilst others only cover the horse owner, so check your cover.

Purchasing a new horse 

When buying a new horse the first line of insurance is to have the horse vetted to find out if it will physically be capable of meeting your requirements. It is then a good idea prior to paying for the horse, to send a copy of your veterinary certificate to your insurance company. They will be able to tell you if they can offer full insurance on the horse or if exclusions will be placed on any conditions that are noted on the veterinary certificate. Exclusions on pre-existing conditions are reasonable, but blanket exclusions on everything noted may be unreasonable and may show a lack of in depth knowledge on the part of the insurer. You must remember that no insurance company is obliged to insure your horse and so will not take on unreasonable risks.

Which insurance company?

Horse owners should be aware of the difference between direct insurers, agents and brokers and the impact this may have on their policy. Direct insurers will market themselves on the basis of cutting out the middle man but they still have to pay for the costs of acquiring the business and servicing it. The main disadvantage to the customers of direct insurers is that they do not have the benefit of an insurance professional in the form of a broker or agent who represents their case to the underwriters in the event of a claim or unreasonable conditions being applied. Contract holding insurance agents are intermediaries who hold an exclusive contract to bind insurance on behalf of underwriters. This can provide a good level of specialist knowledge combining the benefits of direct insurance with the assistance of an insurance professional being able to represent your case to unde rwriters. General insurance brokers sell a wide range of cover from horses to cars, whilst they can provide representation to underwriters they may not always have the specialist knowledge that horse owners require.
As a general tip look at the security of the underwriters. Are they a major insurance organisation like Lloyds, CGU, Cornhill, QBE or Generali, etc. Having decided on the type of insurance that you require you must select a company. Ask your friends or your vet who they would recommend. Ring up a selection and ask for a quote.

During your telephone call find out:

• Do the staff have a real knowledge of their policies and horse owners' requirements?

• Are they offering you the best advice or just trying to sell you a policy?

• Ask about claims procedure.

• How quickly are claims settled after the completed paperwork has been received?

• If your quote does not arrive quickly, it is likely claims will not be dealt with quickly either.

• Is the paperwork easy to understand?

• Do they use insurance jargon? This is unnecessary and can confuse the purchaser.

Some commonly used jargon

• Extension periods - apply to expired policies where cover for a condition is extended beyond the expiry date of the policy.

• Exclusions - conditions or risks that are not covered under the policy.

• Inception date - the start date of the policy

• Pre-existing conditions - conditions that were present before the inception date and are therefore not covered.

• Underwriter-an individual, syndicate or company who accepts the risk that the insurance covers in return for payment of the premium. The underwriter is where the buck stops in relation to decisions on claims and conditions on the policy.

 

If the worst happens

Inform your insurance company as soon as possible in the event of an accident, injury or illness which may later lead to a claim. If your horse needs immediate destruction on humane grounds it would be unreasonable to be expected to notify the insurer first. The welfare of your horse should always be the main concern. But a post mortem must be carried out along with full veterinary reports detailing the history. Should circumstances permit you to contact the insurer first, subject to agreement, the post mortem may not be necessary.
If your horse requires veterinary treatment talk to your insurer as the treatment continues. They will want to know how the case is progressing and may be able to offer good advice. The more fully your insurer is kept informed the easier the claims procedure will be, because the whole history will be readily available.
Most companies have claims forms, part of which the horse owner fills in and part for the attending vet. These forms are submitted along with the original invoices for the treatment. Provided the paperwork is in order vets fees claims should be settled quickly, certainly within five working days. Generally the horse owner pays the vet and then the horse owner is reimbursed by the insurance company. If you prefer some companies will pay the vet direct. If you wish to seek a second opinion always talk to your insurer first.

Loss of use claims are more difficult to settle. The claim will normally happen after a period of treatment. Your own vet must support this view with a written report. The insurer will normally arrange for their own veterinary surgeon to contact your vet to discuss the case. At this point the claim may be agreed or the insurance vet may come to examine your horse or alternatively the horse may be referred to a specialist equine centre for further tests. Be prepared for several examinations to track the progress of treatment or the disease before a decision can be made.

If you have a dispute

If you feel that your claim has been settled unfairly firstly go back to your agent or broker detailing your complaint. If this is unsuccessful you should then approach the insurance company whose address for complaints has by law to be detailed in your policy. If you have no joy here you can then go to The Insurance Ombudsman Bureau, City Gate One, 135 Park Street, London.