Do you insure your horse for its full value?

[htobago]

At the moment, I have Tobago insured for his purchase price, but the premiums are absolutely crippling (could buy a very nice pony every year for what it's costing me LOL!).

On top of that, he was professionally evaluated and re-valued over a year ago (by an international Arab judge who does valuations of Arabs for court cases, etc.) - at considerably more than his purchase price...and I didn't up the insurance, so he is now drastically under-insured even at the stupid astronomical rates I am paying.

Several friends have told me I am daft to carry on paying these high premiums - that I should insure him for much less (although obviously keep insurance for vets' fees etc.) and then just put aside a sum of money each year into a savings account. That way, at least I would be guaranteed a 'payout' when he dies, which is by no means certain with insurance companies, who will avoid paying if they can.

OBVIOUSLY no amount of money would EVER compensate for losing my friend, but I'm trying to be practical here and figure out what to do.

So I just wondered if others on here have seriously under-insured horses, and whether this makes sense?

 

[Tia]

I was never interested in holding Mortality for any of my previous horses, so yes every single horse I ever owned in England had been drastically underpriced to save on insurance premiums. Vet fees were all I was ever interested in and you get those with or without huge premiums.

Over here, none of my horses are individually insured due to dramatic differences in the way insurance works. I hold business insurance for them all and this covers them 3rd party liability and for Mortality at market value, which is a significant figure. Vet bills here are far more reasonable than in England though, so calling out my vet never concerns me. Most of my horses are business assets so are insured accordingly - I am aware how the insurance I hold for the ones I have now is the total opposite for what I was interested in for all previous decades with horses.

 

[quirky]

Horse of a friends, if she had to buy one at his level, would cost her £80K-£100K. She doesn't have hers insured for that, she still has him at the price she bought him for <£3K.

a. She couldn't afford to insure him for his worth.
b. If she was to lose him, she would buy a youngster to bring on again, so wouldn't "need" his full market worth.
c. How ever much she got if she lost him wouldn't be enough, to her he is priceless.

 

[soph21]

I have Bear Insured for £2000, he's worth more than that but the insurance was mental! I only paid £1200 for him unbroken so its better than that. Also the only thing he isn't insured for is hunting, it was also ridiculous!!

How is the sexy Htobago?

 

[MagicMelon]

I have mine insured for £8k although Im sure he's worth way more. Couldnt afford more than that though! Costs me just over £1k a year!

 

[catembi]

I have mine insured for his full worth. When I lost Cat a year ago, I got the insurance money for him, which paid for 3/4 of Adrian. Otherwise I'd have been struggling to scrape together enough money for another good horse.

 

[Bossanova]

For a high value horse (over 15k) I'd insure for full value. Anything below that value I'd insure for the minimum amount possible.

If you lost your boy you'd be gutted if you only got a few k for him when he's worth a lot, lot more.

 

[ladyt25]

It's the risk you take isn't it - whether you want to just cover for Vets Fees or PL or if you want the value of your horse in order to purchase a replacement of the same level should the worst happen. I insure horses and have one of mine insured with the company I work for (the others are with Petplan where they've been for years and are now veterans so Petplan offers more cover for longer). The horse i insure we purchased for under £3000 as a 4 year old, he's now 8 and more experienced so I have him insured for £5K which i think would be more than reasonable for a replacement.

I hope I never have to use the death cover of the policy and I don't think we'd up it more now as, as others have mentioned it's not the money that would matter at the end of the day.

 

[hadfos]

I have my lad insured for £1800,he is worth more than that,priceless to me obviously

,however to avoid rediculous premiums i opted for that as i could get another youngster god forbid the inevitable happens!!!!

 

[hadfos]

He only cost me £500 as an 8mnth old colt,lol,HUGE bargain!!

 

[Jennypenny]

NO i haven't insured for his value. A value for a horse is debatable anyway. I insure my hose for little value, I just want him covered for vet fees and third party. Im my eyes my horse is not replaceable and I can not put a price on that. I just want to know I am covered in the way of vets bills to do everything I can for him. Thats all that matters to me. If i ever lost him I dont want money, I just want good memories which again you can not put a price on. Sorry i am a soppy sod! Love my boy to bits

 

[jenmac_85]

I have never even thought about this before. Tyler is insured for his full value- £2500 and my insurance premiums with PetPlan are £440, which is quite alot for a stuudent lol.

Maybe need to review it!!

 

[natalia]

hahahha, mine are insured for £250 and £350 respectively! they are worth substantially more than this but TBH I just want the vets fees paid for and also the 3rd party.

 

[Three]

Mine are all insured for what their value was when I took out insurance. However, I've been thinking along similar lines - reduce to vet's fees cover and direct debit a monthly sum into a seperate savings account.

Glad I've seen your post as it might prompt me into at least doing that with the mare (was covered for eventing - horrendous premiums - and is now busy being a mum) and the oldie who, tbh, at 33 will be lucky to wring vets fees out of the insurance company should they be needed!!

 

[miller]

Guys - be aware when insuring for under value - if you need to make a big claim (death) and the insurance co can prove you undervalued it is within their rights to refuse the claim (even though they have to pay you less) - it is fraudulent under insurance rules to under insure as much as over insure - a friend of mine learnt the hard way

 

[htobago]

[ QUOTE ]
Guys - be aware when insuring for under value - if you need to make a big claim (death) and the insurance co can prove you undervalued it is within their rights to refuse the claim (even though they have to pay you less) - it is fraudulent under insurance rules to under insure as much as over insure - a friend of mine learnt the hard way

[/ QUOTE ]

What about if one has asked the insurance company, they know that the horse would now be seriously under-insured, and they fully accept this and agree to provide cover knowing this? All in writing, so no chance of a misunderstanding. Surely then they would have pay out?

I've discovered that if I just eliminate the 'loss of use' element of my policy, it is much cheaper - about 50%. What do people think of that? Would that make more sense? The premiums would still be very high, though, so I'm still considering insuring him for less.

Thanks v much everyone, btw - lots of helpful stuff here.

(Can I just say again that of course this horse is my friend, and no amount of money would ever compensate for losing him. I spent 13 years in self-imposed horseless mourning for my last horse, so please don't think I am being all cold and callous here - I just have to make some decisions about insurance.)