Loss of Use... who has this on their insurance??

[_jetset_]

I have just received a quote from NFU for insuring the horse I am getting on loan. The difference (for a 12 month period) for the policy with and without loss of use is £100. So I thought I would add a poll to find out who added this to their policy and why:

 

[MarthaRodman1]

Unfortunately if the owner wants LOU in the policy i don't think you have any choice! I didn't have LOU on my gelding (that is off with a severe tendon injury) really really wish I had taken it out! Although, I also have a mare on loan and we don't have LOU on her - the owner didn't request it. You could always ask the owner to pay the difference if you take LOU? does that make sense? I don't think thats an unreasonable request!

 

[rosita]

I have loss of use because to replace any of my playing ponies would cost an awful lot of money. Think it depends on the finances and the horse your insureing as to whether it is viable or not. At the end of the day the horse needs to be worth insuring for loss of use! Harsh but true I think!

 

[_jetset_]

Thanks... I was just shocked at the price difference even though I was warned.

 

[seaofdreams]

i planned to have LOU on Mouse after what happened with Lottie but it wacked my insurance so much i just couldn't afford it

 

[The Virgin Dubble]

[ QUOTE ]
At the end of the day the horse needs to be worth insuring for loss of use! Harsh but true I think!


[/ QUOTE ]


In most cases, unless people can afford to replace their horse immediately, (regardless of it's value), it makes sense to have loss of use cover.
Rather that, than throwing your hard earned purchase money down the drain if your horse becomes unrideable...

 

[_jetset_]

I do really want to have this added onto the loan horse but I am just worried about paying the extra money on top of all the other expenses of taking her on loan. I just didn't budget for this extra money, I based everything on my own horse's insurance costs and she is worth £2000 more than the one I am having on loan.

 

[The Virgin Dubble]

Ooops sorry honey, I totally missed the bit about your horse being on loan, doh!

Have the owners drawn up a contract stating what insurance they expect you to take out?
If they haven't included loss of use, then you don't need to worry, but do make sure that you're all clear with one another about who the responsibility lies with, should the horse become permanently unsound.

 

[Iestyn]

I'm sorry, but I still think the owner is taking the p**s - if she wants LOU on the policy then she needs to bloody pay for it. She can't expect YOU to pay for something that you won't benefit from. We recently had a horse on loan and we insured him, but with no LOU aas the owner didn't think it was necessary. I'm surprised that NFU will a) insure a horse fo loss of use, when there is no use to lose yet and b) that they're not asking for a full vetting to be done.

 

[_jetset_]

The owner wants loss of use added but the horse is only worth £2,500 at the moment and the insurance are being very negative about getting it out for this amount... I know the owner wants it though so I also realise it has to be added (I have actually drawn up the loan agreement as my friend had one drawn up by a solicitor for her own horse). It is just the extra £100 was just not budgeted for at the beginning.

 

[_jetset_]

S_V, I have put it to the owner about paying some of the difference in money. NFU are being a little funny about it because like you said, she has no use as of yet and because she is only worth £2,500. They said really this only happens over a certain amount...

I am in a total quandry...

 

[Iestyn]

To be honest if you are going for this mare, I would put it to the owner to arrange the insuarance and then for you to pay the premium minus the amount for loss of use. In that case the owner can sort it out and she can tell the insurance company that she is on loan - that would be a better option to be honest.

 

[_jetset_]

In the loan agreement it says I have to sort out the insurance and she did explain that when I went to see her. I don't mind doing this as at least I know it is with someone I trust as an insurer, but the loss of use bit has just completely flummoxed me

 

[Iestyn]

Then you need to tell her exactly what NFU have said (get them to send you a letter - then you have it in writing) and that she needs to pay for it. I'm sorry but she's made it quite clear that she wants you to arrange the insurance, now you need to be quite clear with her. If it falls through then on her head be it and she's the one who's lost out. There are plenty of horses for you to choose from out there - she's in a slightly trickier position in that she's tryong to loan out a completely green horse. I think you're either mad or a saint to be doing it as not many people would put the time, money and work into bringing on a youngster for someone else with the prospect of getting nothing in return.

 

[The Virgin Dubble]

Hmmm, I am inclined to agree with S_V on this.

I don't think the owners are being totally fair in expecting you to pay for everything.
I suppose it depends on how much you want to loan that particular horse...
There are plenty of potential loaners who are happy to contribute to their loanee's costs, so don't let them run rings around you. Try calling their bluff maybe??

Good luck!

 

[_jetset_]

Thanks you two... I did really like the mare I went to see and felt we clicked (I know that sounds slightly odd), but I just can't pay all the £100 extra at this moment in time, and I do not want to do it via direct debit as had already organised for the money to be transferred into the account it will be coming out of in order to pay it in full. I don't even pay it for Hannah and she is an Elementary level dressage horse ready to affiliate once she has her foal.

I would be very sorry to lose out on this horse, but I also don't want to look silly either.

 

[Iestyn]

You're not looking silly at all - but I do think you need to show this woman that you won't let her take the p**s to be honest. I would think that you should have the upper hand in this arrangement - she needs you more than you need her. She is making a fair request in asking you to arrange insurance for her horse but she is taking it a step too far to be honest, considering she has none of hers insured and expects you to take the maximum out to take the horse on loan. It makes me wonder whether this mare has a problem or has been injured and is likely to become unsound or unrideable - I think these things for a few reasons. She has been backed late (you've have been given a "genuine" reason for that). She's not had any work done with her. She's not insured at the moment because the owner had a "disagreement" with an insurance company - you explained the reason for this a while ago, but I don't buy it. I think the insurance company were acting as normal in that situation. It just doesn't add up I'm sorry. I've apologised before for putting a dampner on things for you, but I think she's asking too much now with this LOU, especially for a horse that she bred herself (yes I know there are costs but it's not like she's bought a well bred mare for £1000's), that still hasn't done anything at the age of 5 and is now being put on loan.

I've had my boy insured with the same company for over 4 years. They've paid out on an accident and haven't excluded the leg. He originally had LOU on him but we took it off as it was adding a lot to hid premium. We figured that as we'd only paid £800 for him and he was now PN eventing, has BD points and has BSJA'd to Newcomers (still at 7) then he owed us nothing. To replace him like for like would cost us a fortune but that wasn't important. However, I did enquire about putting LOU back on his policy and they wanted a 5 stage vetting done - to ensure that we weren't trying to put it back on because we knew there was a problem and that we would be likely to claim. It made perfect sense (even though I told the I wasn't happy about it - I did understand why they were asking for it).

 

[Snowberry]

I have loaned out horses but always paid the insurance premiums myself - I'd never leave it to someone else to pay just in case they didnt!!
Its really harsh but I would say that if she wants LOU then she should foot the bill, afterall if anything happens to HER horse she'll be the one getting the LOU paid out to HER.

The only exception is when we had a pony on FULL loan, he moved to our house and basically we did everything and paid for everything. We went on to buy the pony after 8months.

 

[_jetset_]

Thank you, and believe me I would rather people be honest with me than keep saying, oh just pay it and it'll be fine! I need to know these things and have a detached point of view.

I think I need to see what she says before I think about this anymore. It all comes down to that really... I am fine with everything else she has requested, and I don't mind taking on a loan horse that has not done anything - I would appreciate the experience it will give me and the knowledge it will add. But I just don't want to make a fool out of, especially with regards to money.

I now know that what I am asking is not totally unacceptable so that makes me feel that little bit better about things. I needed to see people's reactions before U could be certain that I was correct in doing what I was doing.

Rebecca

 

[Snowberry]

phew - glad you didnt take offence. I am just surprised at what people expect loaners to pay!!
Did she have the horse insured for LOU too?? If you didnt take the horse on loan what would happen to it? Would it stay in the field or be ridden by someone else?
My point is that if LOU is needed then she should foot the bill IMHO. If you do end up paying the insurance I would definitely do it by direct debit monthly as you dont know how the loan will work out. (maybe I am just too cynical and need to go back to my couldron!!)

One of our ponies is out on loan and we pay the insurance, dentist, physio etc.... they pay for shoes as he wouldnt be shod if they werent using him. They are actually doing me a favour by riding him, last thing I'd wanna do it rip them off!!