The Ins And Outs Of Equine Full Mortality Insurance
The equine industry is a lucrative one. Horses are bought and sold for millions of dollars each day. As horses continue to grow in value, more and more owners are viewing their animals as assets.
Insuring a valuable horse is critical in protecting yourself against a large financial loss should the horse die unexpectedly. Full mortality insurance offers the most comprehensive coverage for equine assets, so you need to understand how this insurance product works.
Eligibility
In order to secure a full mortality policy on your animal, the horse must qualify for coverage. The qualification process is similar to that of a human seeking a life insurance policy. Underwriters will evaluate your horse's breeding and background.
Medical records will need to be submitted to prove that your horse doesn't have any ongoing problems that might complicate the policy. Older horses can be more difficult to insure using a full mortality policy. If your horse has value but doesn't qualify for full mortality coverage, consider limited mortality coverage instead.
A limited mortality policy will cover fewer diseases, accidents, and disasters than a full mortality policy, but it can still provide you with financial protection for the value of your animal.
Coverage Changes
A full mortality policy must be carefully monitored as your horse matures. Many owners opt to insure foals that are expected to become valuable as a result of their pedigree or performance potential. The value of your horse can change over time as he or she wins awards and begins competing on a professional level.
You should visit with your insurance agent on a regular basis to evaluate the current resale value of your horse and compare this number against the coverage limits in your equine full mortality policy. The policy will need to be changed if more coverage is required due to a significant increase in the value of your horse.
Coverage Area
Unless it is otherwise stated in your equine insurance policy, a full mortality policy will only cover horses located in North America. Many top tier animals travel internationally to compete. To ensure that your horse will enjoy insurance coverage while on the road in a foreign country, you will need to gain authorization from your insurance company.
Underwriters will evaluate the level of risk that is associated with each trip, then decide if coverage will be extended. Be aware that you will not be able to file a claim against the full mortality policy if your horse sustains injuries or dies while in an unauthorized foreign country- even if you have a valid policy in place.
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