Getting a new horse is a busy and exciting time.
When getting a new horse, whether the horse is a new purchase, on loan or being leased, we understand that there are lots of things to consider and sometimes taking out appropriate cover isn’t always top of the ‘to-do’ list. However, it is important and it will benefit you and your horse to get suitable horse insurance in place as soon as possible; below we outline the reasons why.
1. Full cover from day one
KBIS can begin cover from the moment you have an insurable interest in the horse. If you are purchasing, this would be when you have paid for the horse and the money has exchanged hands.
If the horse is a new purchase, is insured within 7 days of purchase and has passed a pre-purchase Veterinary Examination within 14 days of the start date of the cover; KBIS offer full cover straight away with no limitation period for Mortality, Permanent Loss of Use and Veterinary Fee cover. This means that from the moment you insure, the full cover you have chosen is in place.
2. It stops you from paying for a second vetting
If you have your horse vetted for purchase but decide not to insure your horse within 14 days of the vetting taking place, you may be required to have a second vetting carried out to be able to insure your horse. This will be dependent on the horse’s value and the cover you are looking for, but you can check our specific requirements in our blog post on Do I Need A Vetting To Insure My Horse? The cost of a veterinary examination is not covered under the policy, therefore, would consequently be an additional expense to the policyholder if required.
3. If you have a limitation period, the sooner you start the cover, the sooner the period will be over
If the horse is insured outside of the above dates, has not been vetted for purchase or if the horse has been owned and uninsured for some time, a 45 day limitation period will apply. The limited period means that for the first 45 days of cover the policy is restricted to accidental, external Injuries involving an open wound only. This restricts claimable conditions to cuts, grazes, and visible breaks to the skin in respect of Mortality, Permanent Loss of Use and Veterinary Fee cover for the first 45 days of the policy. This period also includes colic surgery as long as the horse has not had colic previously. After this period, the full cover selected is then in place.
The limitation period starts the moment you insure, so it is beneficial to get the policy started as soon as possible to make sure the full cover selected will also be in place as soon as possible.
The reason Underwriters place this limitation period at the start of the cover is to prevent pre-existing conditions being claimed for. Without this limitation period, it would be harder to determine conditions that pre-date the policy and therefore illegitimate claims may be paid out. This would result in more significant rate increases and higher premiums for all, so ensuring that only legitimate claims are paid helps to keep premiums as low as possible for all clients.
If the horse is on loan or is being leased standard terms are that the 45 day accidental period would apply. This may be reviewed depending on individual circumstances so it is best to get in touch as soon as possible to discuss this, even before a loan or lease has been finalised to ensure the cover in place is suited to the horse, policyholder, and owner.
Have a query that we haven’t answered above? Call the office on 0345 230 2323 to speak to a member of our Equine team or email firstname.lastname@example.org.