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QUESTIONS …when insuring your Paint Horse Here’s what to ask before buying equine insurance. By TONYA RATLIFF-GARRISON Purchasing insurance for your Paint can be intimidating. Many companies and agents are out there, and a multitude of options are available. But what is the right insurance for your Paint Horse? Past APHA President Diane Paris, a specialist with APHA Corporate Sponsor Markel Insurance Co., offers advice on the right questions to ask when shopping for equine insurance. 1 “Do I need to insure my horse?” That is an individual decision. Your horse is an investment, but many people do not insure their horses because they can afford the loss. That’s always my main question to any potential client: Can you afford the loss of your horse by replacing him with another horse of equal value? If not, you need insurance. 2 “Do you have extensive knowledge of Paint Horses and my discipline?” When you talk to a claim person you want to make sure you are talking to someone who understands a horse and your emotional involvement in it. A good agent and company will understand your industry and have experience with your breed and what you do with your horse. This will give you the ability to be able to trust what you are being told and how you will be treated. Also, many agents work with a lot of different companies. Ask what company you will be placed with make 26 SUMMER 2011 • PAINT HORSE CONNECTION sure it’s an A.M. Best-rated company with an “A” or “excellent” rating. 3 “What types of coverage are offered, and which is best for me?” All equine insurance companies offer mortality, which pays if the horse dies, and a few will have emergency colic surgery tied into their mortality coverage. Other types of coverage that can be offered are loss of use (disability), major medical, surgical, breeding infertility, specifi ed perils and liability. What is covered differs from company to company, as does the amount paid to the client or veterinarian. Besides the costs of coverage, be certain to ask about any deductibles, policy exclusions and reimbursement rules. Equine insurance companies do not offer identical policies and what one company offers might not be the same as another. It’s good to ask each company these same questions about policy coverage, limitations and requirements.
4 “How is my horse’s value determined?” This depends on the company. For example, Markel uses “agreed value,” which means that at the time the policy is written, the insurer and the horse owner agree on the cash value of the horse. For a purchased horse, value is determined by price, show record and money earned, among other things. Because purchase price is not available for a homegrown horse, the stud fee and dam produce record help to determine the value. If there is a loss of the horse, Markel pays the agreed value of the horse stated on the policy, provided the information given by the horse owner is accurate. Other companies use “fair market” or “cash value” when insuring a horse for disability or mortality and usually have appraisers determine the horse’s value. This means at the time of loss, the insurer determines the value of the horse based on the market or other circumstances. For example, if the horse’s value has decreased because of illness or injury, the insurer may pay the lesser amount of either the value stated on the policy or the prevailing market value. This can make a significant difference, so make certain you know what value your insurance company uses to determine benefits. 5 “What about pre-existing conditions and genetic diseases?” All insurance companies will want to know the health and history of your horse and many times will require a veterinarian certificate, especially if there is a preexisting condition. Even if the policy says it does not cover pre-existing conditions, be certain what those are. Ask your agent for specifics of what is and isn’t covered for your horse and what is excluded from the policy. For horses that might have an inheritable disease, some insurance companies require genetic tests be performed before the animal is insured. For example, at Markel we do not insure any horses that are HYPP H/H. We will consider insuring an N/H horse that is non-symptomatic. Although there are insurance companies outside the United States that will insure a horse that has been denied coverage, you should be cautious about buying a policy from them. When you hire an insurance company that is not regulated by federal and state insurance laws, you are not protected if there is an issue with them and you would have no recourse. 6 “What are the differences in your medicalsurgical policies?” The amount of coverage and deductible vary the most from policy to policy. Most insurance companies break it down by coverage up to $7,500, $10,000 and $15,000. Each company also has different restrictions on their policies. Some will not cover therapeutic or experimental procedures, so it is wise to ask what is included. Also, find out up front what are the requirements for an injury to be covered. Do you need to notify the insurance company for every little scratch or scrape? This can be a standard condition on many policies. Most insurance companies need immediate notification if your horse is being taken to a veterinarian for an illness or injury—if you neglect to do so, you might impact your reimbursement. 7 “If the vet says my horse needs surgery, what needs to be done to ensure coverage?” If your horse is heading for surgery or for anything you think might be serious, call your insurance company immediately. Make certain the company has a 24/7 emergency claims department you can contact whenever necessary. 8 “What will the insurance premium be?” Although you shouldn’t buy on price alone—the cheapest is not always the best—cost value is important when it comes to buying insurance. All companies play with their percentage rates but most stay within the same range. Also, ask if the company offers monthly or quarterly payment plans or requires the annual payment upfront. 9 “Will my coverage and/or premiums be affected if I am reimbursed for a serious injury or illness?” Depending on the company, premiums can go up if you file a large claim for medical-surgical. Also, some companies might exclude the condition for coverage in a future policy. 10 “When will my horse’s coverage start?” This is one of the most important questions to ask. Does it start the second I give you check and signed application, or is there a waiting period? Most companies don’t have waiting periods but it’s good to know in case your horse needs surgery or dies the day after you’ve acquired a policy. Tonya Ratliff-Garrison is the editor of the Paint Horse Connection. To comment on this article, e-mail tonyag@apha.com. Meet Diane Paris A lifetime member of APHA since the late 1970s, Diane Paris was the 1998 APHA President and a trainer for 34 years. Before joining APHA Corporate Sponsor Markel Insurance Co. in 2002, the Hico, Texas, resident sold human health and life insurance. She is often found at the Markel Insurance booth at the APHA World Shows and many zone and regional shows. PAINT HORSE CONNECTION • Summer 2011 27
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