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Health Insurance for Horses

Sometimes all that separates a horse from life-saving treatment vs. euthanasia is economics

What would you do if your horse became ill, seriously injured -- or worse -- had to be euthanized? Are you prepared to be saddled with a stack of veterinary bills? Are you prepared to lose your entire investment? A horse owner should consider insuring when they are unable to financially replace or heal their horse because any risk transfers to an insurance company for pennies on the dollar. You insure your house and your car. Why not your horse?

Can I get Medical Coverage only? Do I have to insure for Full Mortality?

No. When insuring your horse, acquiring Full Mortality Coverage is your first step. Medical coverage is purchased as an additional endorsement to the Full Mortality policy.

Those who already have Mortality Insurance on their horses should give serious consideration to adding medical coverage. The terms of Mortality Coverage require that the insured take whatever steps are necessary to preserve the horse’s life. In other words, if the horse owner cannot afford recommended, life-saving surgery or treatment, and has to put the horse down or let it die based on economic reasons, the insurance company is not obligated to pay a mortality claim because the horse could have been saved. (This differs from a situation in which a veterinarian recommends euthanasia; insurance companies recognize and honor mortality claims under those circumstances.)

By planning and making careful insurance decisions, a horse owner might never have to face the awful dilemma of assigning a dollar value to saving a horse’s life.

What types of Medical Coverages are available?

Medical Coverage is a form of health insurance and provides medical and/or surgical treatment or diagnostic testing for your horse as a result of accident, injury, sickness or disease. The endorsements below are not available for animals under 30 days of age, animals over 20 years of age or racing stock.

Types of medical coverages available to horse owners include the following:

• Major Medical: This option covers medical expenses, including surgery if the horse suffers an accident, injury, illness, accident or disease. Some examples of covered medical expenses include hospitalization, colic surgery, respiratory surgery, stem cell therapy, shock wave therapy, IRAP and PRP. Exclusions may apply. To qualify, your horse must be insured for $15,000 or more. Annual policy medical coverage limits range from $10,000 to $15,000. A 20% co-pay and $500 deductible applies to all covered expenses.
  
  
• Medical Assistance: The assistance option covers up to $7,500 in medical expenses, including surgery, due to an accident, injury, illness or disease. Some examples of covered medical expenses include hospitalization, colic surgery, respiratory surgery, stem cell therapy, shock wave therapy, IRAP and PRP. Exclusions may apply. There is no insured limit to qualify. A 20% co-pay and $500 deductible applies to all covered expenses.
  
  
• Surgical: This option covers up to $10,000 in surgical expenses due to an accident, injury, illness or disease.  Some examples of covered surgical expenses may include surgical procedure, hospitalization, medication and anesthesia charges. There is no insured limit to qualify. A 20% co-pay and $250 deductible applies to all covered expenses.
  
  
• Colic Treatment & Surgery: The colic option covers up to $10,000 in medical expenses due to colic or acute abdominal pain. Covered medical expenses include medications, treatments or surgical procedures for the management of colic. There is no insured limit to qualify and racing stock is eligible for this endorsement. A 20% co-pay and $250 deductible applies to all covered expenses.

Are all coverages created equally?

All coverages are not created equally. Most people shop for price instead of coverage – so shop carefully and ALWAYS ask questions.

When shopping for coverage, first inquire about the insurance company with whom the agent is placing your risk. How long have they been in business “specializing” in equine insurance (longevity often indicates stability)? What is their A.M. Best rating (A+ rating is the highest = financial strength)? Are they an “admitted” insurance company in your state? One of the benefits of working with an admitted company is that they must conform to state regulations, and in the event they become insolvent, the state has the responsibility to pay an insurer’s claims.

Second, what are the limits and exclusions in the Medical Coverage being offered? Most horse owners are unaware of time limits that some insurance companies place per claim, beginning with the date of the first treatment. This can be quite a problem when dealing with serious conditions that require extensive medical treatment. Some companies limit diagnostic testing per policy period by as much as $2,500. This limit can be quickly absorbed by one MRI or multiple scans that are often required. Another important question is what exclusions apply to the policy (i.e., respiratory surgery and treatment, navicular, arthritis and degenerative joint disease, etc.).

Lastly, what is the deductible and co-pay per claim? Co-payments and deductibles are a common form of cost-sharing under many equine plans. Pay special attention to these and all cost-sharing structures (limits and exclusions) when choosing a plan.

Just like your own life and health coverage, insuring your horse is a process unique to the horse itself. By talking to your agent and asking questions – ALL questions are good questions! – you’ll be better informed to decide the best insurance coverage for your horse, your passion, your investment.

For more information, contact us direct at: Equidae Insurance, Inc. 608 Virginia Street East, Suite 302 Charleston, WV 25301 p. (304) 346-1198 f. (304) 345-3535

Stacey Halloran, Agent
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