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Insurance for a Lease

Curious if anyone would be willing to share their insurance clause for an off farm lease?

In the past I have just had the leaser carry insurance with me named on the policy, but have reconsidered changing it to have the leaser pay me the yearly insurance cost upfront and just keep the policy in my name.

This area is a bit grey for me, so thankful for any advice.

I’ll preface that I have no direct experience with this, but I think having the leaser pay you for the insurance cost is probably the safest way to go.

I have heard horror stories of leasors claiming to have insurance, but not actually getting it. Or having insurance for a month or two to “prove” they got it, and then cancelling it. Or not ensuring there’s continuity and in the couple of days between their own policy ending and the owner taking out a new policy at the end of the lease, the horse gets injured, etc. Just manage the policy for them so that way you know for a fact that the horse is covered.

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This times 100

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Thank you; this is my thought with it too. I keep reading scary tales of the leasor opening a policy then cancelling or letting it lapse and I’m thinking it would just be easier and safer to have it included in the lease price and policy kept in my name.

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It’s best to have them pay you for the insurance. Id just include it in the lease price. Not only is there always the possibility they just don’t pay for it after the first few months, but also it can be a total pain for your Leaser to get it when they aren’t the owner.

I lease out a horse, it’s a free lease and he’s worth about $0 so I didn’t require any insurance on him. My Leaser wanted to get medical insurance on him, and doing that just about broke the company’s mind. They called me 4-5 times trying to confirm that she hadn’t stolen my horse and was going to run some sort of insurance scam on me and them.

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I believe there have been past posts on here about the lessor lapsing and some nightmare situations. As a lessor, the owners have always taken out a policy and I paid them upfront ie one year lease, I paid the annual premium at the beginning of the lease. I did request a clause for reimbursements ie if as a lessor, I paid xx for horse’s xx medical need and the insurance reimbursed, I would receive the reimbursements as the payer of that medical procedure/treatment, not the owner. Obviously mortality etc would go to owner. Hope that makes sense.

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I would definitely suggest having full control of the policy and either collecting the insurance for the year up front or have it worked into your lease fee.

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I’m a bit of a control freak when it comes to MY horse. I would also hold the insurance policy and have the insurance premium included in the lease fee. And make sure the lessee initials the clause about insurance notification. I would want to make sure I, owner/lessor, would be informed of any injury/medical issues that may arise.

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