Loaner insuring for LOU/death etc?

[southerncomfort]

Hi,

Just wondering what is normal?

I am about to take a horse on full loan. I am quite happy to insure for vets fees etc but my husband is quite cross that I am expected to insure the horse for quite a large sum of money for death/loss of use etc when a payout would go directly to the owner (rightly so obviously).

Just wondering what other loaners do. This is my first loan so not sure if it's reasonable or not.

Many thanks.

 

[AmyMay]

Owner would insure, surely?

 

[Miss L Toe]

I would think it is fairly normal, but tbh there have been plenty cases wher the loaner agrees to insure then does not, so that the owner gets a horse back, in a bad way, and no cover.
The owner is entitled to make whatever conditions he wants, you are not under obligation to accept the loan.
... as for husbands... well don't start me...........

 

[hollyandivy123]

when i use to loan my horses out, i covered the insurance so i knew the pony was covered and also the vacs after an expensive mistrust with a loanee. i insisted that the loanee had their own insurance for the rider, it was in the contract with the person i loaned to

 

[ihatework]

It's not unusual for the loaner to cover the insurance. Definitely death and vets. LOU boosts the premiums significantly, so that would be for extra discussion between owner/loaner - if for a competion horse then reasonable IMO.

Easiest way is for owner to hold the insurance and for loaner to pay premium by direct debit

 

[Honey08]

Its really up to the person that owns the horse as to what they want covered, and then up to the loaner to decide whether they want to go ahead or not. I personally don't insure my own for loss of use, and didn't insure the last pony we loaned for it either, but the money for death would go to the owner. I agree with Ihatework in general.

I am a bit wary that hubby is already complaining and you haven't even got the horse, horses are expensive and there are always hidden costs, is he going to be ok?

 

[Elbie]

I think it would be easier to keep all the insurance all under one cover and I think on some policies cover for death is standard and the vet fees cover is extra. However, if they wanted LOU cover I would hope they would contribute towards the premiums as LOU does hike up the premium

 

[dogatemysalad]

It's not unreasonable really. When the loan ends, the owner may have to care for a horse, retired through injury. In the event of the horse dying, she will have lost the initial purchase price.

I hope your husband is prepared for the surprising extra costs that keeping horses entails. Poor man may go into shock.

 

[ladyt25]

Loaners often do have to insure the horse as part of a loan agreement. However, I always think it's better for the owner to do it to ensure the horse IS in fact insured as otherwise there is no proof the horse is insured.

I can totally see why they want it insured for LOU (death is usually an automatic cover with any horse insurance package) as it could have an incident with you that results in it not being able to be used as it was intended. You can just give the horse back and get another. The owner is left with a horse they can't do anything with.

I still do think it's a little off though as you have no insurable interest in the horse so any payments for death/LOU automatically go to the owner not you even though you've paid the premiums (which can be very expensive). At the end of the day though, if the owner's stipulated you do this as part of the agreement then it's up to you whether you want to take the horse on and pay for this part. If not, then look for another loan.

 

[southerncomfort]

Thanks ever so much for the replies, much appreciated.

Will have a chat with the owner and see if we can negotiate over LOU as I've heard it's pretty much useless anyway and insurance companies rarely ever pay out.

Thanks again!

 

[ladyt25]

LOU is quite often paid out to be honest and covers scenarios where maybe the owner elects to have the horse PTS if say it was going to be long-term lame/be on medication to keep it field-happy for the rest of it's life. That is where Death is not claimable and when LOU covers.

However, it is very, very expensive and is a cover I would personally only consider if I was in to horses at a higher competitive level and/or didn't have facilities or finances to be able to look after a field ornament for many years.

It is a tricky one but I do think the owner should really pay for this cover if they want it.