Horse mortality insurance will provide owners with funds to replace their deceased horse if it unexpectedly dies, rather than having to pay out of pocket or have the animal euthanized. This type of insurance protects both the horse and its owner, while also allowing the owner to maintain control over the animal’s well being throughout its life. Learn everything you need to know about horse mortality insurance here.
What Is Horse Mortality Insurance?
One of horse owners’ biggest fears is that their prized animal will die unexpectedly and leave them in financial distress. To counter those fears, horse mortality insurance and sometimes called equine mortality insurance is a policy which protects an owner from unexpected losses due to a horse's death or illness.
Who Needs It?
With an estimated 14,000 horse deaths in 2009, you’re bound to need it. If you own a horse and depend on it for your day-to-day life, or if you plan on breeding your horse in the future, then consider buying mortality insurance.
What Does it Cover?
First, if you have a horse that passes away from natural causes not from injury, there are two types of horse mortality insurance that can help protect your investment: Premium based policies These will reimburse you for any veterinary fees or additional expenses related to burial. For example, if your equine friend dies and it’s determined he had cancer and you spent $1,000 on his care before he passed away, a premium-based policy would pay you back that $1,000.
How Much Does it Cost?
As a general rule, mortality insurance costs between 1.5 and 5 percent of a horse’s value each year. For example, if you paid $1,000 for your horse, an annual mortality insurance policy could cost between $15 and $50 per year.
What Types of Policies are Available?
There are three basic kinds of horse mortality insurance policies: straight, no claim and endowment. A straight policy will pay out only if your horse dies; it won’t refund premiums if you decide to cancel it early. With a no claim policy, you’ll receive a partial refund on premiums in case your horse survives for a period of time. Finally, an endowment policy combines death benefits with permanent life insurance.
How Do I Get A Quote?
To find out how much a mortality insurance policy would cost for your horse, you’ll need to contact a provider directly. A popular option is Animal Life Insurance Company (ALIC). ALIC has agents available through their website, who can walk you through your options and help get you set up with coverage.
Should You Buy Horse Mortality Insurance?
With mortality insurance, you get paid a predetermined amount of money if your horse dies during a specific period of time. Whether or not it’s a good idea for you will depend on how likely your horse is to die. and what that death would mean for you and your business. Here’s everything you need to know about whether or not horse mortality insurance is right for you.
Are There Any Alternatives?
If your horse is an older model or has not been performing as well as you’d like, you may be interested in finding a new owner for him. Many people take on retired racehorses, but because of their stature and breeding, Thoroughbreds aren’t always easy to find homes for. If you have a Thoroughbred that you wish to sell but are having trouble getting any interest from buyers, consider offering it through a mortality insurance company.
Horse insurance cost per month
Most mortality insurance costs about 2 percent of your annual horse income that’s, roughly, $20 for every $1,000 in annual horse income. So, if you make $10,000 per year from showing and breeding horses, expect to pay $200 a month for mortality insurance. If you have multiple horses that bring in an income and they’re all insured, you can deduct part of that cost each month.
Short term horse insurance
When you own horses, it’s impossible to avoid thinking about what would happen if one of them was no longer with us. While there are life insurance policies for people, these tend not to cover horses. Fortunately, mortality insurance is available that can give you peace of mind while still allowing you total freedom and control over your horse. Even if you already have a life insurance policy in place for your horse, it’s worth knowing how mortality insurance differs and what else is out there.