Loan help please

[chevs]

Hello, hoping for a bit of help please. I've just taken a mare on loan. Shes a lovely 6yr old bavarian warmblood. She was backed then turned away until i started working with her 6 weeks ago. She's well bred but as i say hasn't done anything. Her owner came over to see me today to discuss loan agreement. I said that i was happy to insure her, owner then said that she thought she was worth £6000. To my knowledge anything over £5000 needs a 5 stage vetting certificate. I said this to owner who then said that she didn't mind if i insured her for less but if the worst happened and the horse got ill or accident and had to be pts that i would make up the shortfall in value. This seems a bit strange to me. So if for example I insure her for £4500, if the horse dies I have to pay £1500 to make up the value!!!!

Up until I started working with her she'd never been hacked out, wouldn't go anywhere near water and was bargy and full of herself. She's coming along nicely but needs a lot of work before I can start competing her.

Thoughts please. I have loaned a pony of mine out before and was just happy that he was insured for vets fees and a realistic value if he was pts. I feel that £6000 for a horse that has not proved itself is maybe a little unrealistic. What do you think?

Thanks

 

[guido16]

Tell her that if she wants it insured at that price then she will have to pay for the 5*vetting.

And you could get some independant instructor etc to value her. To be honest, in this climate I would value her at about 3.5k, especially if she hasnt done anything.

 

[ChwaraeTeg]

I think I would ask if perhaps a third party could be brought in to do a valuation as such a large amount over the £4,500 could be difficult for me.
Might be more complicated though, because by the time you have finished training her, she may well be worth that and more.
Maybe she would agree to £4,500 the first year, then set a date for reassessment ?
(only a thought)
.
Hope all goes well


(sorry Guido, we seem to have posted the same time )
I'm not very up-to-date with prices and values

 

[Tinypony]

When I put a horse out on loan, I paid the insurance myself. There was a clause in the contract to say that the loaner paid any excess if there was a claim. I paid for the insurance to make sure that it was kept up. That seems quite common, so maybe the owner would consider doing that. If the owner isn't happy about this, then contact the insurance company, find out what it would cost to insure the horse for £3,500, and then what it would cost to insure it for £6000. The owner takes out the insurance in their name, you pay the cost of the payments for £3,500, they pay the rest. And of course if a vetting is required, they pay. You pay excess on any claims, but nothing more if anything happens to the horse.
Howzat?

 

[Tinypony]

Just to add, it sounds as if the owner is getting a very good deal out of you at the moment. You're paying to keep the horse, and training it for them. Bargain.